Digitization of the insurance sector in Switzerland: investment resumption

After a timid recovery in 2021, the insurance sector is part of an investment dynamic in 2022. There are many initiatives to develop the customer experience, especially in mobile applications.

Colombus Consulting publishes the 5and publication of its study on the digitization of the insurance customer experience in Switzerland. After a timid recovery in 2021, the insurance sector is part of an investment dynamic in 2022. There are many initiatives to develop the customer experience, especially in mobile applications. Innovation also involves developing InsurTech and creating new ecosystems.

Tight trio at the top of the 2022 rankings

Digitization is accelerating and Helsana, TCS and Groupe Mutuel, which dominate the rankings, are making more progress on average than other players in the market. Overall, health insurers are progressing, on average, more than other players in the market. In fact, the relationship with the customer is more developed there, and interactions are more frequent with more digital services (digitizing and sending invoices, changing franchises, ordering new complementary products, questions regarding product coverage, etc.).

Budgets allocated to digital media rose sharply (+31%), driven by health insurers, which invest more heavily than non-life and accident insurers (10 point difference in the growth of digital media budgets between the 2 types of insurance ) .

Insurers develop their audiences and services for more omnichannel

The industry trend is to develop differentiated interaction services with the return of instant messaging and chatbot functions, and better integration of social networks in customer service. “The objective of insurance companies today is to streamline the relationship with customers through digital channels, without forgetting that agencies and consultants continue to be the main point of contact for customers. We are talking about an Advisor enhanced by digital technology” specifies Jean Meneveau, associate director of Colombus Consulting.

Mobile apps drive industry innovation

While mobile apps have historically offered functionality covering basic needs (claims management, invoice scanning, insurance contact), the offering is evolving: SWICA, CSS, Sanitas, Helsana now offer digital health coaching in more advanced mobile apps.

The new Twint+ service offers travel or daily insurance, in partnership with Würth financial services in the “App Only” player market, while Revolut travel insurance remains only available in Europe and not Switzerland.

InsurTech’s continued growth is driving the industry forward

Despite a slowdown in fundraising, InsurTech players show continued development in 2022. At the European level, the sector is divided into 2 families: on the one hand, players that position themselves as front-end competitors of traditional insurers (for example, the German Wefox, French Alan and +Simple), on the other hand providers of specialized services and solutions (eg French Shift Technology specialist in fraud detection, English Envelop Risk specialist in reinsurance). As with AXA Switzerland, which acquired start-up Kinastic in 2022, the acquisition or partnerships between insurers and InsurTech continue.

The emergence of new ecosystems is taking shape

The dynamics of InsurTech’s players has driven insurers to innovate, giving rise to a new trend: ecosystems that allow players in the same industry to join forces to create new services. We note the arrival of Well, which brings together insurers CSS, Visana, telemedicine provider Medi24 and online pharmacy Zur Rose, and which offers new integrated services between the players. In the same dynamic, Compensana brings together the insurance companies Groupe Mutuel, Helsana and Swica and the health groups Medbase and Hirslanden, and should soon launch services that will also be scrutinized by the market. “In fact, customer expectations are high in the insurance industry, where the digital customer experience often lags behind other industries,” specifies Jean Meneveau.

Does the scan have to go through “Open Insurance”?

Between the integration of new services, partnerships and the creation of ecosystems, the insurance market wants to be more open. If, historically, collaborations between actors had the objective of expanding the range of services, Open Insurance must now make it possible to offer new end-to-end services, or even integrate actors totally external to the sector. “Excellence in the experience for customers and employees continues to be a strong driver of innovation in a market that is constantly looking for new paths”, concludes Jean Meneveau.

Colombus Consulting presents below the world ranking of the digital index, which measures the digital performance of insurance based on 50 indicators divided into four areas: Web, Mobile, Marketing and Social.

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