The digital transformation of insurance has come a long way in recent years, but as Gallagher global chief digital officer Stephen Rhee explained, delivering value through technology requires more than just automation and efficiency – it requires empathy, timing, and a strong understanding of what customers really want.
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Rhee began by breaking down how digital expectations vary across the commercial insurance market.
“If you think about your own personal insurance, we’re all highly digital, meaning self-service. We want things easy,” he said.
That same mindset applies to small commercial clients, who value speed and simplicity above all else. “They’re primarily looking for a digital experience with a lot of self service, a lot of access to data, payments,” he explained.
As you move further up the chain, however, expectations shift. Mid-market clients still want digital convenience, but also need expert validation.
“They still want some digital, but they really want to talk to a broker or an expert that can validate their purchase,” Rhee said. “Am I buying the right amount of limit? Do I have the right market? Do I have the right insurer? Am I getting the proper claims service?”
Larger commercial buyers present an even more complex picture.
“Traditionally, [large commercial buyers are] more like 25% digital, 75% relationship-based,” Rhee explained. “[But] that’s trending really hard to 50/50.”
Rhee said this was because of the increasing complexity of risks, particularly given the increasingly complex geopolitical landscape, and the vast amount of information and data needed to understand these risks, much of which can now be shared with brokers digitally.
AI’s Role in the Insurance Value Chain
The conversation inevitably turned to AI, which featured heavily across the Insurtech Insights agenda.
While Rhee drew a cautious comparison to the fleeting hype of blockchain, he was clear that AI is here to stay – provided it delivers real value.
“Insurers are really looking for quick wins,” he said. This could be in the form of better underwriting, or increased profitability, with a lot of focus on speeding up processes so you can get quotes out quicker, making it more likely you win that business.
Brokers, meanwhile, are focused on removing pain points.
“It’s really the renewal,” he said “How can I pre-fill things out for them? How can I submit to the market with a clean submission?”
Despite the benefits AI can deliver across the insurance value chain, Rhee was still quick to warn against over-automation.
“All of us have probably had a negative experience interacting with a bot,” he said, adding that while automation may make economic sense – “a bot interaction on the insurance level is about 10 cents… a live interaction with a person is about $8” – the long-term cost of losing a customer far outweighs the savings.
“The cost to just replace that client that I didn’t interact with is $30 versus an $8 interaction,” he said. “So you have to look at the total cycle of that customer journey.”
Mapping the Right Blend of Digital and Human
For companies looking to strike the right balance between digital tools and human support, Rhee advises stepping back and mapping the full customer journey across different segments.
“Personalised, small commercial clients expect 95% digital. Mid-market has a different expectation. Large global has a different expectation,” he said. “So understanding, what is it that they’re experiencing through that whole customer life cycle – from prospect to client to renewal – and how can I interact digitally with them at the right time [is key].”
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