Paul McCallin of Atos argues that traditional pensions providers must embrace transformation in order to thrive in the future and should follow the lead taken by FinTechs and InsurTechs.
Companies need to meet rising consumer expectations for ‘wow factor’ experiences; they must comply with new regulations and pass public scrutiny; they must handle emerging competitors that advance from every angle; and they must continue to innovate and stay relevant over the lifetimes of generations of new customers.
While the prospect of transformation on this scale can lead to inertia in some organisations, the ones that thrive will be the ones that act now.
Huge opportunity
Progressive protection companies will recognise that change is not about individual technologies, gimmicky products or a single new touchpoint; it is about working through transformation at an organisation and ecosystem level.
There is a huge opportunity to provide more targeted services with greater market knowledge than ever before
With millennials more comfortable providing and sharing their data, there is a huge opportunity to provide more targeted services with greater market knowledge than ever before.
FinTechs and InsurTechs have reformed the industry by doing this already, and pensions and life protection providers must adapt – not in five or 10-years’ time, when baby boomers and Gen X-ers are no longer the dominant demographics and companies have missed their opportunity to establish brand trust with younger generations, but right now.
Integrated strategy
The ability to build customer experience into everything a business or pension scheme does will become a point of difference between current major competitors. It will also prove to be a way of levelling the playing fields with FinTechs and InsurTechs. This requires an ability to think differently, a determination to continually adapt and a customer-centric approach to change.
Companies need an integrated strategy for cutting the cost-to-serve and reducing risk, while also knowing how to become an integral part of consumers’ lives. They need the capacity to manage transformation while offering ways to meet the needs of new generations of consumers. A combination of data-driven personalisation, omni-channel experiences, and relevance at key ‘moments of truth’ is a sure-fire route to success.
As competitive pressures grow, rethinking traditional approaches to pensions and life protection will yield new customers and ensure progressive providers can lead the industry once again. With market transformation showing no signs of slowing, it is incumbent on the incumbents to transform.
Paul McCallin is head of customer insight, business transformation services at Atos
