E-Commerce with an emphasis on Social Technologies
I had an industry colleague in to visit IdeaStar last week. We got to talking about Web-enabled insurance technology. He made the interesting comment. He said:
“When it comes to Web enabling various processes, yes, there are costs involved. But more importantly, there is a cost of NOT doing it.”
That comment struck me as something I hadn’t talked about. But if you think about it, the cost of not Web-enabling your insurance processes – especially marketing, quoting and enrollment processes – can be very steep.
More and more agents and customers that prefer to use the Internet to learn and to buy will be put off by an insurance offering that lacks effort in the Web technologies area.
In other words, if you just throw something together and put it out on the Web without any promotion or updating, you are not meeting the needs of a significant and growing market. I’ll take it one step further then that. The cost of doing it wrong might be the highest cost of all. In that scenario, you spent the money – probably big money – and your efforts failed. And you’ve alienated the users you were trying to serve. You then face a huge delay in getting to the right solution, and your reputation in the marketplace was damaged.
The point of all this is:
There is no doubt there is a cost to Web-enable insurance processes. But there is an even bigger cost in not taking that step, and the highest cost of all in doing it wrong.