Insurers need to act more like technology companies or risk the hard reality of losing both the trust of - and business from - advisers, Vitality’s life and investment boss has said.
In an interview with FTAdviser, Justin Taurog said if insurers aren’t acting as digital technology companies, then the level of trust instilled in them by their intermediaries will stagnate.
“If you’re not evolving and you’re not in that mindset of making every process you have automated and collecting feedback, the reality is you will lose business from an adviser or from a customer which is unable to do something - be that a change in address, or checking the benefits of a policy,” said Taurog.
“If you’re not acting as a digital tech company, adviser and client affinity, or loyalty, will only go so far [...] and you will risk losing momentum.”
Taurog refers to Vitality as an “insurtech”, rather than an insurance provider. “We describe ourselves as an insurtech,” he said. “We’re constantly re-iterating and innovating our approach. It’s a constant process.”
A focus of “massive investment” for the new VitalityLife boss, who until recently had solely headed up the investment side of the business, is on easing the 'pain points' of a claim through automation and building its customer experience teams.
“I think the days of accepting a service level as it is are a legacy,” said Taurog, who took Vitality from 15 policies a day under the PruProtect brand to a global business with partners in 28 countries.
Taurog reckons Vitality has done well to ease any pain points it might have had on the health side of the business, but he is now keen to apply a “real focus” to solving 'pain points' for customers across its life insurance arm.
“We're looking at claims,” he said. “How can we make sure at the point of claim - whether that’s a death claim, a serious illness cover claim, or income protection - we've taken the pain out of the system?”
Taurog’s aim is to ensure an adviser’s client data is captured upon initial notification with clear instructions as to the documentation needed, hence avoiding lengthy and time-consuming follow-ups.
By owning the claims process end-to-end, and providing one point of contact throughout the process, the insurer hopes to match its health business in terms of 'pain-free' customer experience.
Giving advisers access to “straight-through” processes and “instantaneous” information will continue to be a priority for VitalityLife, according to Taurog.
Following its ‘underwriting revamp’ in October 2020, the insurer will be launching a new set of automations in the new year, but the details of these are yet to be announced.
They will follow on from Vitality’s Evidence Analyser, which promises an underwriting decision ‘within minutes’ without the need for an underwriter to manually review a set of nurse screening results.
Danger of 'computer says no'
Phil Jeynes, director of corporate strategy at protection adviser Reassured, said the Vitality boss' priorities were right but highlighted the risks which come with overly digitised services.
“I agree insurers need to think about tech as part of their distribution priorities, although digitising too much of the process can cause frustration of the 'computer says no' variety!" said Jeynes. "Human touch, where appropriate, is still vital for our relationships with insurers."
He continued: "Similarly, as more distributors of scale create their own digital sales channels, it’s vital that insurers are able to integrate seamlessly rather than plough their own furrow and become unable to collaborate.”
Sam Marriott, director of CSE Financial Services, reckons the human element is now "a back up tool", rather than a forefront factor.
"I would agree - the world we live in now is a complete time efficient one," said Marriott. "If an adviser can't get multiple quotes in 30 seconds, check pipeline in an instant, or upload, or challenge decisions without human interaction, advisers will go to those providers that will."
He concluded: "I think the human element will always play a part, but has now become a back up tool rather than the forefront."
But for Kathryn Knowles, managing director of Cura Financial Services, a human team is everything. "When I think of tech, I don't think of people, I think of systems that I cannot talk to," she said.
"I think the key thing is for insurers to ask advisers what they need to be fully supported and then to try and action as much of this as possible. The best service that we have is with insurer's that have team members that actively engage with us, check how things are going, are readily available."
'Inspiring' insurance
Whilst Taurog emphasised Vitality's investments in automation over the last year, he also cited the health business' use of "empathy" as a model for the firm's protection arm going forward.
"If someone's phoning in for a Cancer claim, we make sure someone is there showing empathy and taking them through that journey," said Taurog. "The feedback we get from customers is just incredible, based on the fact they've got someone they can trust through that time."
The insurer has also offered around 420,000 health assessments in total to customers so far in return for 'Vitality Points', picking up anything from high blood pressure to prostate cancer.
"If it hadn't been for the health assessment, it might have been three, four or five years before they really started seeing any symptoms."
When Taurog joined Vitality more than 13 years ago, he sat with insurance industry members who posed the question: 'Can an insurer be an inspirational brand?' The sector had - and has since - struggled to separate its association with the reminder of death and serious illness.
Asked whether he reckons Vitality could be the one to do this, Taurog said: "I mean, we're very much on the journey."
The insurance - or rather, 'insurtech' - boss referenced the tangible benefits of Vitality - including the health assessments and Apple Watch partnership - as examples of how it's getting to be known as more than just a reminder of mortality, and rather a driver for a healthier lifestyle.
Vitality's business model works by offering lower protection premiums to clients depending on their health, and for those investors who are likely to live longer and thus invest longer, it can offer them access to lower tax brackets on investments.
"It's a common methodology across the business," said Taurog.
He also cited the brand's "vibrant pink" colour and its choice of a dachshund as a mascot - which had a "major" impact on dachshund ownership according to the Kennel Club. "We're capturing the public imagination."
ruby.hinchliffe@ft.com
