As investments in InsurTech continue to swell, companies that have been playing a waiting game are now confronted with the unmistakable tides of change.
But what are the emerging themes that are defining this new era?
Innovation in InsurTech: A necessity, not optional!
With the surge in investments, InsurTech disruptors have begun to overhaul the insurance value chain, touching upon every element from sales and marketing to renewal procedures. The welcome news is that consumers are eagerly embracing these streamlined and enhanced experiences.
According to a survey by Majesco, insurance companies lag 40-60 points behind other sectors in Net Promoter Score (NPS) ratings. By honing in on customer experience, through modernizing their technological infrastructures, offering captivating and engaging user interfaces, and strategically partnering within the broader ecosystem, insurers can see a dramatic uptick in their NPS ratings.
A paradigm shift in InsurTech: From mitigation to prevention
The rise of IoT, sensory technologies, predictive analytics, and gamification are ushering in a new era where insurance companies can promote constructive behaviors among their customers, thereby mitigating negative outcomes.
Power of data: Transforming the insurance lifecycle
Drawing parallels with fintech lending startups, emerging InsurTech firms are looking beyond traditional data pools to inform customer-centric insurance decisions. Rich insights harvested from social media activities, online behaviors, and data emanating from IoT devices such as smart wearables and home automation systems are being compiled and analyzed in innovative ways. This comprehensive customer view sets the stage for insurance companies to deliver more specialized and personalized experiences.
This amalgamation of historical and real-time data isn’t limited to underwriting but extends to every facet of the lifecycle. Harnessing data from both new and existing sources can create transformative opportunities.
Digital technology + Innovative business models = Exhilarating customer experiences
Three key elements come together to shape the customer’s affinity towards a brand:
- A frictionless customer experience
- A demonstrable value proposition
- A chance for the customer to act altruistically
Insurance is being re-envisioned as an intrinsic part of the customer’s daily life, a far cry from traditional models where customers interact with their insurers only at the point of purchase and potentially years later when making a claim.
Key takeaways
As the landscape of insurance undergoes seismic shifts, here are the key considerations:
- Maintain a customer-centric focus, weaving your brand experience seamlessly throughout the customer journey.
- Infuse the customer experience with positive emotion, balancing behavioural science mechanisms with user-friendly technological interactions.
- Don’t just act as a shield, but play a role in preventing negative outcomes, reinforcing your stance as a genuine advocate for the customer.
In conclusion, InsurTech is challenging the status quo, catalyzing a transformation in the insurance industry. It’s clear that the future of insurance lies not in the hands of those who watch and wait, but in those who embrace change, innovate, and place the customer at the center of their universe.
