The Dangers Of Poor UX In The Post-Covid Insurance Industry Tech Rush

800 449 Andrew Machin

As we step into the second quarter of 2021, the effects of the pandemic are becoming more and more real. From retail to construction to hospitality and through to marketing, the impact is being felt by all.

One sector that has experienced particular disruption is insurance. Providers have suffered major losses as a result of Covid-19 related pay-outs. To counter this, insurers are set to channel significant effort into funding digital transformation as their next move. They’ve realised that in order to thrive in a post-covid world, they have to step up their digital game – and do so quickly.

With over 99% of industry professionals in agreement that insurers need to urgently step up transformation, many companies are looking to fast-track their digital transformation. But is this sudden approach more effective, or could it end up being more detrimental over the long run?

Breaking down digital transformation

The last 12 months have shown us just how vital tech and digital services are in keeping the world connected. Which is why digital transformation is high on the agenda for companies looking to move forward and recover from the effects of Coronavirus. 

In a nutshell, digital transformation is the use of digital technology to create new processes and modify current ones, the overall goal being to adapt to new business and consumer wants.

The bad business of rushing UX

Businesses, particularly those that have been around for a while, have been slow to act on digitalisation, which is why we’ve seen a sudden push for and rapid expansion of digital transformation over recent years. 

However, a rushed design job is likely to result in bad UI/UX. And bad UI/UX can have unintentional consequences that stay with a business for years. Just take Citibank’s recent interface fiasco, which resulted in a near billion-dollar blunder.

The bank’s woes were the result of a clunky UI that resulted in what Forbes labelled a ‘toxic’ user experience loop. The consequence was a mistaken $900 million payout. The story illustrates just how vital quality-tested and human-centred is to doing good business. 

Transformation takes time, and that’s ok

As human-centred designers, we see every day how technological advancement has created a world of instant gratification. And we’re not just talking about consumers and product users products. The companies that create and offer these products can just as easily get caught up in this expected gratification. 

They can begin to view technology as an omni-solution, as something that can provide instant, viable solutions with just the wave of a magic UX wand. The reality is that a well-thought-out UI and UX takes time to develop, test, iterate and respond to user feedback. It begins with defining the problem and then innovating to come up with the best solution to that problem; then prototyping and testing it until it works seamlessly. 

Failing to define the problem correctly or choosing the first solution that comes up during a brainstorm to rush through a final design is where we see companies trip up. The consequence? A flawed experience that leads to customer dissatisfaction and loss of trust in your brand that could take years to recover from. 

Weighing up the costs

As a sector that has notoriously lagged behind in regards to digitalisation, insurers now have a lot of ground to make up. However, the rush to recoup losses suffered due to Covid could mean that profit is prioritised in lieu of positive user experience: with short-term gains falling short against long-term negative impact.

A more modern, user-friendly experience is, of course, a positive and necessary goal. But rushing design just to keep up with competitor trends can have devastating consequences for both the user and the company.