Fusing digital capabilities with human expertise will fortify the future success of Luxembourg life insurance
There are a plethora of ways in which 2020 will go down in history, not least the unprecedented disruption to our ways of working, across all segments of wealth management, including Luxembourg life insurance. Traditionally, our business is based on proximity and our ability to cater to the private needs of wealth planning and the protection and transfer of wealth. Whilst human connection and trust are the foundation of successful relationships between advisors and clients, the new social distancing and health parameters have put into question what it will take to ensure that our industry remains relevant as we enter into an uncertain new frontier. Recently, teleworking tools have enabled us to ensure business continuity, illustrating the benefits offered by digitalisation. Although digital appears to be a clear and unavoidable solution, the real question is how our industry should use it to stay agile and adapt.
What advantages can digitalisation bring to the Luxembourg life insurance industry?
Digitalisation is an accelerator for Luxembourg life insurance companies. But we are not start-ups. Digital transformation needs to be integrated into existing operational models and architectures and adapted to our culture of service. For several years now, the integration of technology into key operational processes, such as the automated analysis of risk profiles or the instant verification of information in anti-money laundering controls, has contributed to operational excellence and increased our efficiency. From a sales perspective, the existence of a digital onboarding platform and the availability of online transaction tools represent important growth levers for Luxembourg insurers, in line with our partners’ expectations.
"However, digitalisation alone is not enough. The major differentiating factor for the Luxembourg life insurance industry lies in its human expertise."
What do Luxembourg life insurance companies, their clients and partners, have to gain?
Digitalisation offers a better experience for all stakeholders by saving time, increasing efficiency and providing instant, secure and complete access to information and pending requests, 24/7. For intermediary partners, innovative collaboration tools strengthen the advice and service they can provide. For example, being able to monitor the policy onboarding process and access consolidated reports reinforces their role as a distributor, in line with their regulatory constraints. A Luxembourg life insurance policy is an investment platform, requiring a comprehensive and up-to-date overview of exposure to financial markets. Access to live information, as well as transaction tools via a digitally enabled servicing platform, enable them to strengthen their role as an asset allocator within a unit-linked life insurance policy.
For life insurance providers, digital onboarding offers significant improvements in operational efficiency, greater flexibility, as well as better management of flows and volumes. Electronic signature and transfer of secure information directly into insurance policy administration systems reduces risk and further improves service quality.
Ultimately, digitalisation makes it possible to do more, better and faster, giving the various participants more time and capacity to focus on managing needs and business relations, whether in respect to their clients or partner companies.
But is it the silver bullet that will future-proof our industry?
Yes and no. A Luxembourg life insurance policy remains a bespoke solution and digitalisation is an effective means for us to offer highly advanced personalisation of our solutions. Standardisation of all or part of the process is a real asset in terms of economies of scale for Luxembourg insurers.
However, digitalisation alone is not enough. The major differentiating factor for the Luxembourg life insurance industry lies in its human expertise. Advice is at the heart of our value proposition, including wealth structuring, estate planning, cross-border expertise, legal knowledge, market-specific compliance, etc. These are all differentiating factors that give Luxembourg insurers their strength. As our partners’ and clients’ needs increasingly shift towards more tailor-made solutions, in an increasingly complex environment, this human expertise enables us to offer greater sophistication and make our services even more relevant in tomorrow's world. This combination of a digital journey and human expertise will make it possible to meet the most demanding of needs, to remain relevant in tomorrow's world.
David Liebmann, Head of
Distribution & Sales Innovation,
Head of French Market
Lombard International Insurance
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