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Designing a digital strategy

Emerging Insight #:

  151
 

Date of Release:

  December 3, 2018
 

Subtopics:

  Business models, Client interface
 

Source:

  The Facility
 
 

How Equity Insurance Agency is digitalizing insurance sales

A digital strategy used to be about selecting the right technologies, automating tasks and gaining efficiency. Today, digitalization involves fundamentally transforming the way a business works and what it offers.

Equity Insurance Agency (EIA), one of the ILO’s insurance innovation partners, embarked on its digital strategy in 2018. With the overall Equity Group making strides in its digital transformation, EIA needed to work out how to leverage technology for its insurance business.

One challenge was that most of Equity Group’s banking interactions were now happening through alternative banking channels (including banking agents and online platforms), while EIA relied on making sales at Equity Group’s branches. Customers were frustrated that they were not able to access insurance through the same platforms they were using for other Equity Group services.

EIA analysed possible approaches to digitalization. While it eventually planned to digitalize all functions, EIA had to figure out where to focus initially – either on increasing revenues or reducing costs. While both were important, the process also had to be manageable and results needed to be achieved fairly quickly.

EIA decided to focus initially on digitalizing sales in order to increase revenues – a key competitive advantage given EIA’s role as an insurance broker. The company’s digitalization strategy has so far been successful. As part of this strategy, EIA introduced its first mobile-only insurance product, a hospital cash product that offers customers a fixed cash pay-out per night when they spend three or more nights in any hospital. It is EIA’s first product offered completely and exclusively via mobile, and all interactions, including sales, renewals and claims, are carried out on a smart or feature phone. The product has already reached over 150,000 customers in just eight months.

Read our latest Case Brief to learn how EIA balanced the advantages and disadvantages of each option to arrive at its digitalization strategy.