Suncorp’s Ambitious Vision: 100% Insurance Coverage
In a recent strategy presentation, Suncorp’s CEO Steve Johnston highlighted the company’s ambitious plan to extend the coverage of insurance to nearly 100% of the population. While the timeline for this goal remains unspecified, the ambition is driven by the belief in a hyper-personalized future for the insurance industry, where digital transformation and artificial intelligence (AI) play a pivotal role.
The Future of Insurance: Hyper-personalisation, Digitalisation, and AI
According to Johnston, the future of insurance lies in hyper-personalisation. With the help of digital tools and AI, the company aims to transform underwriting. This will result in more precise pricing and risk selection, enabling customers to benefit from personalized premiums and products that better reflect their risk profiles.
Beyond just pricing, these technologies will also transform the customer engagement process. Johnston predicts that digital will be the prevailing method of engagement, and automatic payment of claims will become the norm. AI will also be instrumental in addressing non-compliance and fraud.
Mitigating and Monetising Risk
Johnston also highlighted the importance of investment in home safety measures and government-funded mitigations. These factors need to be monetized and reflected in the premium. While pooling or cross-subsidisation will continue to exist, it will be within far narrower bands.
Suncorp’s Multi-Brand Strategy
As part of the vision for a hyper-personalised, customer-centric future, Suncorp’s multi-brand strategy is set to play a crucial role. In addition to the main Suncorp brand, the company also owns AAMI, GIO, and six other brands. The strategy aims to leverage the strength of these brands to cater to the unique needs and risk profiles of a diverse customer base.
Partnerships for Wider Coverage
One of the key aspects of Suncorp’s strategy is partnering with the government to extend insurance coverage closer to 100% of the population. This approach aims to support the affordability and availability of insurance products, particularly for those who may struggle to afford the premium.
Modern Technology for Scale and Efficiency
Suncorp is making significant strides in modernising its 40-year-old platform and leveraging artificial intelligence. Lisa Harrison, Chief Executive for Consumer Insurance at Suncorp, outlined three main areas where the company plans to realise the benefits of modern technology:
- Business Agility: The company aims to increase its speed to market with new products and benefit from rapid core system updates through a cloud-based solution. This will support risk reduction and improve loss ratios.
- People Empowerment: The new platform will reduce complexity and cut training times, creating a simpler, systemized control environment.
- Digital Insurer: This initiative will deliver better customer engagement, empower employees to have more effective conversations with customers, and extend digital channel offerings across all brands.
Through these initiatives, Suncorp aims to unlock growth, improve loss ratios, and reduce costs, thereby delivering strong financial benefits.
In conclusion, Suncorp’s vision for the future of insurance is one that is hyper-personalised, digitally transformed, and driven by AI. The company’s ambitious goal to extend insurance coverage to nearly 100% of the population reflects its commitment to making insurance more accessible and affordable for all.
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