By Gayle Terry, President of Domestic & General US
The insurance industry is witnessing a significant transformation driven by technological advancements, which are reshaping how insurance companies operate, interact with customers, and manage risk.
Data is king for insurers, as it allows us to customise products and services for new and loyal customers, tailoring and curating to their unique needs. This not only strengthens customer relationships but also provides insurers with deeper insights into evolving customer demands. Whilst both the US and UK insurance industries are leveraging AI to transform their operations, the US is characterised by rapid adoption and a focus on customer personalisation. The UK, on the other hand, takes a more cautious approach, with a strong emphasis on risk management and data protection. A recent survey by Opinium research in June 2024 found that more than half (57%) of the UK public is apprehensive about the rapid adoption of artificial intelligence.
Domestic & General prioritise innovative technological application in both the US and UK markets, with recent financial results demonstrating our success.
Talent and upskilling
The adoption of AI by businesses in the UK has seen significant progress, with the government increasingly recognising its importance. However, the UK is showing signs of lagging behind its global counterparts. Domestic & General is keen to buck that trend, leveraging recent technology investments and an ambitious data technology and data strategy to attract talent. Domestic and General is actively recruiting a range of professionals, including data scientists and technology engineers. In our US division, we made two key acquisitions this year. To help our partners build customer loyalty and deepen relationships, we acquired After Inc. in June 2023, a leader in the US warranty industry renowned for its advanced technology, analytics, and marketing capabilities. Additionally, in December 2023, we acquired a repair management platform from Nana Technologies Inc. This platform was brought on to handle all aspects of the repair logistics process, including payments and appointment scheduling, enhancing our ability to offer consumers the flexibility they expect.
Updating legacy systems
As technology advances, businesses must be able to keep up. Whilst there is a strong emphasis on minimising the risks of AI in relation to privacy, it’s an invaluable tool for data extraction, prompting many companies to integrate it into their business models. We are leveraging AI to analyse customer insights from online reviews and emails. This enables us to perform more effective root cause analysis and quickly identify keywords that may indicate customer vulnerability, allowing us to provide support. Another technological upgrade, though not always visible to customers, is the migration of our policy administration systems to the cloud—a substantial infrastructure enhancement.
The growth of subscriptions
A big part of that strategy has been our ability to leverage data effectively. By consolidating and enriching our core datasets, we’ve built a strong foundation for predictive and analytical models. These models have been instrumental in driving key optimisation decisions and contributed to top-line growth and margin expansion. In relation, our subscription base has seen a 6% increase this year, growing continually year-on-year. Ultimately, our goal is to not only grow our business but also to deepen customer loyalty by offering solutions that truly meet their needs.
Not losing the human touch
AI-driven solutions, such as chatbots, are increasingly improving customer interactions. For instance, our new ‘smart fix’ for heating products allows call centre agents to help customers resolve simple issues, reducing the need for repair visits. At D&G, we value the human touch in customer experience and believe that balancing digital convenience with personal connection is key to staying competitive in a customer-focused industry. This balance also ensures that customers always have the reassurance of personal support when needed, which significantly enhances customer loyalty and retention. For example, a broken washing machine creates an unnecessary stress for families, but knowing repair support is always available fosters loyalty we value. This commitment is reflected in our FY24 report, showing an 86% customer retention rate.
Conclusion
In an era where technology is rapidly reshaping insurance, Domestic & General, exemplifies how traditional companies can transition using technology and data platforms to meet customer needs. To stay competitive and responsive, updating legacy systems has become essential. By modernising these systems, we can fully harness the power of AI, allowing D&G to not only personalise services but also drive operational efficiency and infrastructure upgrades. Our commitment to balancing technological innovation with the human touch underscores our dedication to providing a seamless customer experience. This dual approach ensures that we stay ahead in a competitive landscape while delivering exceptional value to our customers.
