Are BFSI Brands Embracing A Fully Digital DNA?

Stefanie Pipenhagen, Senior Manager of Customer Experience in Europe at Lemonade, emphasises the importance of financial companies embracing a fully digital DNA to maximise the benefits of technology when catering to the modern customer.

Do you call yourself a tech company that offers products and services or a company leveraging tech to provide the products and services? It might not seem like much of a difference, but it says a lot about the company’s business values and digital approach. 

The BFSI industry faces a massive digital transformation in order to stay on par with other digital players. Some companies seek solutions through a traditional IT department or an innovation lab that is separate from the customer and the business. Be warned; you might not be happy with the outcome. 

“Don’t try to solve new things with existing answers. Lemonade views itself as a tech company doing insurance, not the other way around. This mindset allows us to iterate fast while providing fairer pricing, faster responses, and lower costs,” said Stefanie Pipenhagen, Senior Manager, CX Europe at Lemonade.

Excerpts from the interview: 

How do younger generations approach insurance differently from older ones?

Committing to a double bottom line — using business as a force for good is something the younger generation expects and appreciates. Financial companies whose services are tied with the extra benefit of giving back to charities that customers would like to support is a good approach. 

As a global-minded company, Lemonade’s products and values are universal. So while we have adapted our language and coverage to fit younger policyholders of our markets, we believe that the consumer in Paris, Berlin or New York who is frustrated with their current insurance provider will find Lemonade to be easy, instant, and delightful, which are essential differentiators for younger generations.

What can traditional finance players learn from Lemonade’s story?

Don’t try to solve new things with existing answers. Technology has tremendous potential to improve customer experience and several other internal and external functions. But to truly create value out of it, it has to be at the heart of the company and integrated into the culture. A company should have a fully digital DNA to get the most out of technology. Too often, solutions are sought through a traditional IT department or an innovation lab that is separate from the customer and the business

Tell us how your teams use technology to offer more personalised product offerings and meaningful cross-sells.

Lemonade views itself as a tech company doing insurance, not the other way around. This mindset allows us to iterate fast while providing fairer pricing, faster responses, and lower costs.

At the same time, AI is also transformative: big data allows more precise pricing, and automation slashes costs while improving service. Add all that together, and let that feedback loop run for a few more cycles – and it can be pretty disruptive.

How have you seen customer behaviours change since the pandemic? How do you keep track of these changes?

The pandemic has transformed the world – insurance included. Let me explain: The industry went largely untouched by technology for over a century. Insurers started accelerating innovation within their organisations, investing in insurance startups and digitising many operations. The pandemic has been a fundamental accelerator of the trend towards digitisation throughout society.

How can insurers manage high-emotion moments from claims with the help of AI and automation without losing the human touch?

One of the most exciting uses of AI regarding claims management is our claimsbot, AI Jim. A majority of the time (in fact, 96 per cent of the time), AI Jim will take the first notice of loss from a customer making a claim; in a third of cases, AI Jim handles it entirely through resolution. We’re constantly analysing the efficiency of our chatbots and working on new ways to increase effectiveness.

For claims, AI, Jim is not authorised to settle or ones where he identifies concerns; he sends them to our human claims experts, analysing each expert’s speciality, qualifications, workload, and schedule to determine to whom to assign the claim. Even where human escalation is needed, for instance, in high-emotion moments, AI Jim will have done much of the heavy lifting, so our team can settle claims and support customers in their hour of need as quickly and smoothly as possible. Lastly, while our tech drives who we are and how we differentiate, we also track other vital metrics within claims, such as NPS, cycle time for service and claim settlements, closing ratios, and severities across all coverage lines.

For more insights on CX in the BFSI sector, join us at CX NXT – BFSI Summit, which will take place in London on 07 May 2024. For registration and more information, visit CX-NXT BFSI Summit.