“I predict one day Amazon will fail. Amazon will go bankrupt. If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years.” Stunning words spoken by the founder and former CEO of Amazon in a 2018 address to his employees when asked about the future of the company. His words might have stunned a crowd hoping for a more rousing response, but his remark had a subliminal point: the giants often don’t last. Why? Technology. It’s a lesson insurers working in the consumer telecoms space can take note of.
Insurers are set to play an even bigger role in the mobile device insurance market. The mobile device insurance market sits at a market value of $23.2 billion, whose CAGR is expected to reach 12.6% from 2021 to 2028, according to a Grand View Research report. Devices are getting more expensive and indisposable, especially considering the centrality they play in helping manage routine in the average day of most people. Those same costly and complex devices will require accompanying technology when handled, which requires innovation.
For decades, the insurance market has been dominated by a few giant players who’ve become accustomed to stagnation or fell victim to heavy bureaucracy, which prevented change. Meanwhile, as digitization capabilities matured and the new digital era sank in, smaller more nimble companies started using innovation to their advantage to outpace the Goliaths they were up against. And it’s slowly transpiring in the insurance market. In order to keep up with the Davids of the arena, the large players in the market will need to boost their use of technology, which can and will improve the customer experience and save them on service expenses.
When customers sign up for insurance either directly with the insurer or through their mobile operator, they expect a digitized customer experience—covering services like device repairs and replacements. On the B2B side, mobile operators working with insurers expect their partners to be capable of handling those same services to the operators’, plus other backend services, including the trade-in device management and repurposing.
For example, an insurer in one day could receive a mobile device that’s ready for secondary market repurposing from a mobile operator, while also receiving a claim directly from a customer regarding a necessary repair. These happen in the thousands, if not millions, daily. In the case of the secondary market repurposing, an operator must perform a data privacy law-compliant device data wipe or in the case of the repair, accurately diagnose a device in a standardized fashion. That requires organization and the existing systems large insurers are using, while effective until this point, won’t cut it in a rapidly growing market.
While insurance companies are already using technologies that help them manage millions of devices at any given time, they’re not as efficient as they can be, to manage device diagnostics, inventory data, customer relations management, device repurposing, device data management, and other important functions. All of the technologies utilized today are specific automation technologies that are only applied to single channels, with none built in a holistic way that include all channels and device lifecycle stages. What’s missing is the omnichannel angle, which leaves individual customer channels fragmented. But this can be easily solved with the integration of new technologies, such as an end-to-end device lifecycle platform.
So, as the number of insured customers increases, the load to manage the millions of devices accelerates, rendering older mobile device management technologies and processes obsolete and behind. But MCE Systems’ logistics solution can help alleviate the inevitable burden and bring peace and quiet to a potentially hectic inventory scenario.
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About MCE Systems:
MCE Systems is the pioneer in mobile device lifecycle management, having created more than $2.5B of shareholder value for operators and their partners since 2005. MCE’s industry-leading solutions simplify operations, increase revenues, and decrease inefficiencies. Specific solutions range from device diagnostics and care to trade-in management with a price guarantee to handling device returns. All are omnichannel-ready with world-class virtualization and provide fully integrated data management to anticipate customer needs around device-related customers issues (e.g., device health, upgrade timing). Over its more than 15 years of experience, MCE Systems has become the trusted solution to Tier-1 operators and their partners. For more information, please visit:www.mce.systems.