The LATAM Consumer
by the ITC Team | March 27, 2023
Customer centricity has become increasingly important for insurance and insurtech companies operating in Latin America. Many companies have recognized the need to focus on the customer experience to differentiate themselves from competitors and retain their existing customers.
One of the key trends in customer centricity in Latin America is the use of digital channels to engage with customers. This includes offering online portals and mobile apps that allow customers to manage their policies, file claims, and communicate with their insurance company in real time. This became particularly important during the COVID-19 pandemic, as many customers had been unable or unwilling to visit physical branches.
For an inside and up-to-date perspective, we spoke with Hilario Itriago, President BOXX Insurance USA, Chairman of the LATAM Insurtech, and advisory board member for ITC LATAM, about the top customer experience strategies in the LATAM market today:
Q1: For anyone who is not yet active in Latin America, what is the most important thing they should consider and strategize their business goals towards to be attractive and credible to a consumer in the region?
Hilario: Given we are a very diverse region despite most of the countries speaking the same language, except for Brazil, is that you need to know each market well. Latin America is a mix of large and small, advanced and early starters in the world of insurance; what is needed in one market may not be needed by a consumer in another. The other thing is to be aware of the market dynamics and distribution mechanisms; some countries are very reliant on the traditional broker-intermediated model, while others are very advanced in the Affinity/mass market distribution with Banks, Retailers, etc. In short, do your homework and focus where you see the best opportunity for your strategy to have a fit and, therefore, a growth opportunity.
Q2: What is the biggest success for customer acquisition and retention in LATAM?
Hilario: Value embedded solutions; these may not be the most margin-rich products but are the ones that reach the most customers and therefore provide the best usage.
Q3: Beyond language, what can you tell us about how the LATAM consumer likes to be communicated to? What seems to grab their attention most, and what could be a waste of resources?
Hilario: We are very relatable people, so direct and clear communication works best; complicated things tend to turn us off.
Q4: What are you seeing work well for the LATAM insurtech customer experience? What can traditional insurers learn from this?
Hilario: Digital, frictionless value propositions that are easy to understand are the ones winning, which is not how traditional markets have operated for years.
Q5: Where do you see the biggest opportunity for insurtechs to grow their customer base?
Hilario: Relationship with Affinity channels which does not mean only sales; it could be services and solutions, as Insurtechs can operate in all aspects of the insurance value chain.
Overall, customer centricity has become a key focus for insurance and insurtech companies in Latin America as they seek to differentiate themselves in a highly competitive market and meet the changing needs and expectations of their customers.
If you’re attending ITC LATAM this April 24-26, here are a few sessions focused on customer experience that will help build on a customer-centric model:
- Interactive Roundtable Experience: Boosting Customer Acquisition
- The Difference Technology Makes to Life and Health: Perspectives on Creating Digital Resources that Change People’s Lives.
- Empowering brokers to manage their clients more effectively during the policy cycle
- Insurtech for the Masses: Strategies for Achieving Mass Adoption, New markets, New partners, New countries.
- New Distribution Channels: Ecosystems and Embedded Insurance
- Closing Conversation: Predictions for the next 12 months, predictions for the next 5 years
Register here for a chance to get in on the conversation!