Across Australia, drastic measures are being taken to control the spread of COVID-19. Numerous clusters have developed, particularly in VIC and NSW, and with a large spike in confirmed cases, community transmission is now a reality.

Despite the additional risk, we continue to apply our usual common-sense approach to underwriting with the addition of some more specific questions on COVID-19 to evolve with the situation.

What’s changed?

For the vast majority of applications, there will be no change. If your client has not been affected by the virus, it will still be possible to complete a case with straight through processing, just as it is with many other disclosures. 

For those applicants who have been impacted by the COVID-19 virus pandemic, we will continue to apply our overarching underwriting philosophy using a fact based, common sense and research driven approach. They may be asked additional questions based on the information they provide.

Being there when you need us most.

From the onset of COVID-19, Integrity has maintained no blanket exclusions or restrictions on applications.

As a signatory to the FSC COVID-19 initiative, we believe in protecting the people who are protecting us.  That’s why we’ve supported expanding the definition of “Frontline workers” to include; All hospital workers, ambulance workers and paramedics, people who work at a GP surgery or clinic, workers at COVID-19 testing sites, people providing mental healthcare services, workers developing a COVID-19 vaccine or treatment, pharmacists, police, aged care workers, and volunteers helping to support people with COVID-19.

What if I have additional questions?

We know it’s an extraordinary time to be working in this industry, so our entire team is available to help support you. If you have questions for our Chief Underwriter, Chief Actuary, Head of Claims or our Rules Engine Manager, we’re happy to get you in direct contact with them, just get in touch.

The world has irreversibly changed, and we’re not done yet. However, if we look at broad consumer trends and understand how they can be applied to our industry we can better navigate the disruption and evolve – for the better.

We looked at consumer reports from McKinsey, KPMG, and The World Economic Forum and identified some similar trends across the board.

Customers want Australian businesses to get back to basics – but with modern delivery.

When Australian consumers talk about basics, they’re talking about values. Values like trust, transparency, loyalty and security. These were consistently raised by customers across Financial Services according to a KPMG report* on customer experience expectations. One of the biggest shifts was in the demand for ‘Integrity’ (we’re not making this up!) where consumers are seeking increased transparency in terms of communication especially where fees are concerned. You can understand in times of uncertainty, people want to know where they stand. Open and honest communication, as well as anticipating customers’ questions and needs (before they have to get on the phone and ask) will not be something that goes away.

While ‘the basics’ are actually code for ‘values-based customer-centric decisions and approaches’, one other area that is permanently transforming is how the basics are delivered.

A recent report by BT Global Services showed that two-thirds of customers want to be able to use video chat to discuss a financial service product with an Adviser and 61% are interested in using video chat to discuss the renewal of an insurance policy or claim^.

Find ways to make digital more human.

While we are craving connection and a more human experience, we need to find a way to deliver this via digital channels. As mentioned, video chat is proving a very effective tool to support efficient connectivity and the smart companies are investing in training their people how to deliver warmth and professionalism via Zoom. But there are other ways.

One thing good marketers do is understand the world their customer inhabit. Examples of this are setting up Google Alerts on keywords that could be client’s businesses, their home suburbs, their favorite pastimes – why? So you can either be on the front-foot with news that changes their world (and perhaps insurance needs) or be better informed when you speak to them.

How to deliver more, with less.

Something has to give. You still only have 24 hours in a day – and some of those you need to sleep. The best place to find those extra hours is through digital transformation with a focus on operational efficiency. We have written a lot about this (see below) but never has this been more critical to delivering on consumer expectations in this new world we’re all living in.

Additional content on operational efficiency.

• https://integritylife.com.au/operational-readiness-whatever-life-throws/
• https://integritylife.com.au/the-adviser-of-the-future/
• https://integritylife.com.au/why-good-design-matters-in-life-insurance/

Sources

• * https://home.kpmg/au/en/home/insights/2020/05/covid-19-customer-experience-expectations-australian-business.html
• ^ https://www.adviserinnovation.com.au/news/increased-use-of-video-for-advisers-may-be-a-gamechanger
• https://www.weforum.org/agenda/2020/04/this-is-the-psychological-side-of-the-covid-19-pandemic-that-were-ignoring/
• https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19

When we published our research paper on the future earlier this year, we had no idea how quickly everything would change as a result of COVID-19. But the truth is, the trends we predicted continue to influence our industry unabated. In many cases COVID-19 has, in fact, just accelerated change. Here we outline what these broad trends mean for you – the Advice industry, and we unpack what you can do now to make the most of the change and not get left behind. If there is one thing that is always true it’s that change in inevitable.

Trend 1: Client engagement and advice delivery will align to evolving demographics and needs.

To date, most of your clients have probably been baby boomers. Now gen X, Y and Gen Z are likely to become the predominant forces within consumer markets. These generations grew up with the internet and have different expectations. COVID-19 has actually accelerated these preferences and embedded them as part of BAU. So, here’s your checklist…

1. Do you have video conferencing? And do you know how to present online?
2. Do you know how to leverage personalised data to create a bespoke pitch to your potential client?
3. What options do you have for new business to get in touch or renew? Chat, email, phone, Calendly, a variety of social media channels?
4. What is your social media presence like? Are you engaging fans and followers and building an online reputation?
5. What happens when price and product aren’t the only considerations? How will you manage clients who are interested in understanding the ethics of all companies you are recommending?
6. What do you stand for? We are in an era of social movements like #metoo and #blacklivesmatter – your stance on social issues may come into play… is your business carbon neutral (for example).  

Trend 2: The market will fracture as new client-centric business models emerge.

In order to continue to justify commissions or even a fee for services, Advisers will need to demonstrate the value of their advice and the bespoke personalisation of it. You can’t provide personalised advice without an in-depth understanding of your client and their goals. So how do you do this while still maintaining a margin through a discovery or ‘getting to know you’ phase? Here are some things to think about…

1. How automated are your questionnaires and on-boarding processes? Can you connect via an Application Programming Interface (API) to other sources to create unique offerings and easy applications? Eg: Facebook, LinkedIn, health records.
2. Have you got a one-size-fits-all approach to customer engagement? Or do you have packages based on understanding key requirements of segmented audiences and customers?

Trend 3: Fee transparency and versatility will be vital for fostering client trust.

Commission or not, clients want transparency. Not only in the price they’re paying and why, but also what the Adviser is being paid – and why…

1. Do you have a flexible fee structure or are you completely reliant on commissions? Are you charging for time or expertise? And, can you clearly articulate the value you add?
2. How do you demonstrate ongoing value for money? And how do you ensure you have ‘clients for life’.

Trend 4: Artificial Intelligence (AI) and other emerging technologies will enable advisers to deliver advice and insurance more effectively.

1. What does your business look like when all the number crunching, cost-saving and goal planning recommendations are so quick and easy you can no longer charge purely for them?
2. What opportunities does AI give you to create even more bespoke offerings?
3. Do you have a robust technology backbone with an API so you can securely ‘plug and play’ with other companies to create new offerings?

Trend 5: The emergence of ‘new age’ advisers will see an inter-generational adviser workforce share skills, knowledge and experience.

1. What is the diversity of ages, backgrounds and skills across your business like? Or how do you tap into diversity within the community?  
2. What do you and your brand stand for? Do you have purpose beyond profit?
3. How does your business share ideas and promote innovation?