Is there any reason while till date the Insurance Industry have not been able to design an electronic money exchange to ease insurance transactions and claims payments?
Have you walked into a bank to withdraw money from your bank outside Lagos and Abuja, in the last three months or so? As in, your account balance is N100k and you want to withdraw N50k over the counter, you will be told, “Sir, we can’t give you more than N20k today, but you can do transfer in all your transactions.”
“Do you have our USSD or Electronic card?”
Truly, if you do transfer, your payments for Products and Services are seamless. So what majic is that, where you cannot withdraw cash, but with the flick of a finger you will get a transaction successfully done and paid for?
One major factor that mitigate against insurance claims payments seems to be the limited cashflows and account balances of insurance companies. This has resulted to the myths and misconceptions about insurance, as “Government licensed businesses, where operators collect premium, but don’t pay claims”.
Can insurance resort to the use of electronic money transactions, like the banks do, to build the public confidence in insurance? This conversation will be in series, beginning with Insurance as Brands.
Have you ever considered insurance as a Brand?
Brand is simply defined as “what the people say about You when you are not in the room”. So What then do the people say about Insurance? On the other hand, is insurance a necessity to the people?
Those who have experienced it know very well that unexpected expenses can be devastating. These could be by way of property losses, death of the family bread winners, medical expenses.
Therefore if you have insurance to mitigate the impacts of the unexpected, your confidence will be far stronger than those that have no such plans in place. To buttress this point, risks crystallise based on risk exposure, not on selective amnesia. So unexpected expenses can happen to anyone anytime anywhere.
There’s this story of a family whose head never believed in what insurance can do for him or for his family. He had all things going very well for them. But one day, the Death Angel arrived at their door and knocked. The family head opened the door and the following conversation took place.
Death Angel: “Sir I have come for you, as today is your turn.”
Family Head: “I don’t know you and I don’t have any appointment with anyone”.
Death Angel: Brought out his Register and asked; “Isn’t this the resident of Akushis de Prof?”
Family Head: “Yes, I am Akushis de Prof, yet I don’t know you and have no appointment with you. However, you seem to have travelled a long way to get here, come take a sit and let me serve your refreshments and some foods.”
Death Angel: “aaah, that’s kind of you”, taking his sit, he was soon entertained to sumptuous meals and he dozed off after eating and drinking.
While he was asleep, Akushis took the register and moved his name from top of the list to the bottom.
After a long time asleep, Death Angel stirred, called Akushis and thanked him immensely for the hospitality. He then told Akushis that for his kindness, he would switch his name from the top of the list to the bottom. So Akushis de Prof was unknowingly moved back to the top of the list and the Death Angel took him away.
Shortly after, Akushis de Prof slumped and was rushed to the hospital. At the hospital the medical bill was N600k and the family was asked for the electronic health insurance card before they commence treatment.
They didn’t have any.
Akushis wife then put a call across to her first son who lives and works in the City and told him to send the money required for his father’s treatment.
Sadly, the young man had only the sum of N30,000.00 in his account and everyone he called up to assist turned him down.
By the next morning, Akushis de Prof gave up the ghost. Obviously, his life may have been saved if he had insurance to fall back on at that pressing time.
By afternoon the same day he died, the news of the death of Akushis de Prof has gone round the community and sympathisers gathered at his family house to console and mourn with his loved ones.
As you would expect, criticism of the management of the hospital was top of the stories. A few people also broached the issue of insurance as necessary tool to fall back on at times like this, which in turn provoked the discussion on how insurance companies collect premium but don’t pay claims at all, with many people sharing experiences of their “distant relatives,” who took insurance while working at Kingsway back then, but were all disappointed by the insurance companies when it was time to pay claims.
This scenery is often relived in crisis and has remained so for decades due to insurance non challant attitude to Brands Management.
Insurance are daily brought into full view with opportunities through which they could do brand management. Brand management is not just about logo, colours, corporate gifts and hangouts at beach fronts. These are all important, but brand management is a lot more.
Let’s review a few Brands issues here that insurance companies ignore to take advantage of:
Brand activism:
This refers to the practice of companies taking a public stance on social, environmental, or political issues, often through their branding, marketing, and communications efforts. This can include advocating for specific causes, promoting diversity and inclusion, or addressing social injustices.
Types of Brand Activism:
a. Values-based activism: Brands take a stand on issues that align with their core values and mission.
b. Issue-based activism: Brands focus on specific social or environmental issues, such as climate change or racial equality.
c. Crisis-based activism: Brands respond to immediate social or environmental crises, such as natural disasters or humanitarian crises.
Benefits of Brand Activism:
i. Increased brand loyalty: Consumers are more likely to support brands that share their values.
ii. Improved brand reputation: Brands that take a stand on social issues are often seen as more authentic and responsible.
iii. Increased employee engagement:
Employees are more likely to be motivated and engaged when working for a brand that shares their values.
iv. Business growth: Brands that take a stand on social issues can attract new customers and increase revenue.
Challenges of Brand Activism:
i. Authenticity: Brands must ensure that their activism is genuine and not just a marketing ploy.
ii. Backlash: Brands may face criticism or backlash from consumers who disagree with their stance.
iii. Credibility: Brands must have credibility on the issue they are advocating for.
iv. Consistency: Brands must consistently communicate their message and values.
Examples of Successful Brand Activism:
a. Patagonia: Environmental activism through sustainable manufacturing practices and environmental advocacy.
b. Nike: Advocacy for racial equality and social justice through advertising campaigns and partnerships.
c. The Body Shop: Activism for human rights, environmental protection, and social justice through product lines and campaigns.
Best Practices for Brand Activism:
i. Be authentic: Ensure that your activism is genuine and aligned with your brand values.
ii. Be consistent: Consistently communicate your message and values.
iii. Be transparent: Clearly communicate your stance and actions on social issues.
iv. Be respectful: Listen to and respect differing opinions and perspectives.
v. Be committed: Long-term commitment to the cause is essential for credibility and impact.
In the case of the group of sympathisers that gathered at the home of Akushis, such gatherings Offer Influencers opportunity through Brand Community, which is a group of people who share a common interest, passion, or loyalty towards a brand. This community can be online or offline and is often characterized by a sense of belonging, shared values, and collective identity.
Characteristics of a Brand Community:
a. Shared identity: Members share a common interest or passion for the brand.
b. Sense of belonging: Members feel a sense of connection and belonging to the community.
c. Shared values: Members share common values and norms related to the brand.
d. Collective identity: Members identify themselves as part of the community.
Benefits of a Brand Community:
a. Brand loyalty: Members are more likely to be loyal to the brand.
b. Word-of-mouth marketing: Members become brand ambassadors, promoting the brand to others.
c. Customer retention: Members are more likely to continue purchasing from the brand.
d. Market research: Members provide valuable feedback and insights to the brand.
e. Competitive advantage: A strong brand community can differentiate the brand from competitors.
Types of Brand Communities:
i. Online communities: Social media groups, forums, and online discussion boards.
ii. Offline communities: Meetups, events, and in-person gatherings.
iii. Hybrid communities: Combination of online and offline interactions.
Examples of Successful Brand Communities
a. Apple: Apple’s loyal customer base and online forums create a strong brand community.
b. Harley-Davidson: Harley-Davidson’s owner groups and events foster a sense of community among customers.
c. Starbucks: Starbucks’ loyalty program and online community encourage customer engagement and loyalty.
Strategies to Build a Brand Community:
i. Create engaging content: Develop content that resonates with your target audience.
ii. Foster interactions: Encourage discussions, comments, and feedback.
iii. Recognize and reward members: Acknowledge and reward loyal customers and community members.
iv. Host events and activities: Organize online and offline events to bring the community together.
v. Monitor and respond: Listen to feedback and respond to community members’ concerns.
Note that different groups are already in existent. Example of those whose relatives that worked at Kingsway and were disappointed by insurance companies that refused to pay claims.
To trigger the interest of insurance companies in investing in branding as a strategy to overcome negative public perceptions, consider the following approaches:
Emphasize the Benefits of Branding:
a. Improved reputation: Highlight how branding can help shift public perception and establish trust.
b. Increased customer loyalty: Explain how a strong brand can lead to higher customer retention and loyalty.
c. Competitive advantage: Illustrate how branding can differentiate insurance companies from competitors.
d. Business growth: Share case studies demonstrating how effective branding can drive business growth.
Address Specific Pain Points:
a. Claim payment concerns: Develop branding strategies that address the myth that insurance companies never pay claims.
b. Transparency and trust: Create campaigns that showcase insurance companies’ commitment to transparency and fairness.
c. Customer-centric approach: Highlight insurance companies’ focus on customer needs and satisfaction.
Showcase Successful Branding Examples:
a. Case studies: Share real-life examples of insurance companies that have successfully rebranded and improved public perception.
b. Industry benchmarks: Highlight insurance companies that have achieved positive brand recognition and reputation.
Collaborate with Industry Associations:
a. Partner with industry bodies: Work with insurance industry associations to promote the importance of branding and reputation management.
b. Develop industry-wide initiatives: Collaborate on initiatives that address common pain points and promote positive perceptions of the insurance industry.
Leverage Data and Research:
a. Conduct market research: Share research findings that demonstrate the impact of negative public perceptions on insurance companies’ business.
b. Analyze customer feedback: Provide insights from customer feedback and reviews to highlight areas for improvement.
Develop a Comprehensive Branding Strategy:
a. Define brand positioning: Help insurance companies define their unique value proposition and brand identity.
b. Create engaging brand messaging: Develop messaging that resonates with target audiences and addresses specific pain points.
c. Implement multi-channel campaigns: Design campaigns that leverage various channels, including digital, social media, and traditional media.
Let’s delve deeper into Electronic Payments for Insurance.
Once the Branding concept is gotten right, the Insurance companies and can adopt electronic payment systems, leveraging technologies like IoT, blockchain, and cryptocurrencies, to facilitate swifter and more secure claim payments.
Here’s a descriptive overview:
Electronic Cards and Digital Wallets:
i. Digital insurance cards: Issue electronic insurance cards that can be stored on customers’ mobile devices.
ii. Digital wallets: Partner with digital wallet providers to enable customers to store their insurance information and receive claim payments.
Blockchain Technology:
i. Smart contracts: Utilize blockchain-based smart contracts to automate claim processing and payment.
ii. Decentralized ledger: Store claim data on a decentralized ledger, ensuring transparency, security, and immutability.
Cryptocurrency and Electronic Money:
i. Cryptocurrency integration: Integrate cryptocurrencies like Bitcoin or Ethereum into claim payment processes.
ii. Stablecoins: Utilize stablecoins, pegged to a fiat currency, to reduce volatility risks.
Internet of Things (IoT):
i. IoT-enabled devices: Partner with IoT device manufacturers to enable seamless data transmission for claims processing.
ii. Telematics: Utilize telematics data from vehicles or other insured assets to facilitate claims processing.
Benefits:
i. Faster claim payments:
Electronic payment systems enable swift and secure claim payments.
ii. Reduced administrative costs: Automation and digitalization reduce manual processing costs.
iii. Increased transparency: Blockchain technology ensures transparent and tamper-proof claim data.
iv. Improved customer experience: Digital payment systems provide a seamless and convenient experience for customers.
Implementation Roadmap:
i. Research and development: Collaborate with fintech companies and technology providers to develop a customized solution.
ii. Pilot program: Launch a pilot program to test the electronic payment system.
iii. Full-scale implementation: Roll out the electronic payment system to all customers.
iv. Continuous monitoring and improvement: Regularly assess and refine the system to ensure security, efficiency, and customer satisfaction.
Regulatory Considerations:
i. Compliance with insurance regulations: Ensure the electronic payment system complies with relevant insurance regulations.
ii. Anti-money laundering (AML) and know-your-customer (KYC) regulations: Implement AML and KYC protocols to prevent illicit activities.
iii. Data protection and privacy: Ensure the electronic payment system adheres to data protection and privacy regulations.
Insurance companies can streamline claim payments, reduce costs, and enhance the customer experience by embracing electronic go, IoT, and cryptocurrencies.
By: Dr Uzoma Ofurum mnipr.
