InsurTech is revolutionizing insurance. Is your company being left behind?
In today’s insurance landscape, traditional insurers and InsurTech startups have little in common, other than one key fact; when combined they will revolutionise how the industry’s big players do business. Today InsurTech is slowly beginning to deliver value and accelerate insurance’s transformation, so now is the time to consider how this technology can impact your business.
Insurtech’s definition is a simple one; it is the technology that lies behind the creation, distribution and administration of insurance startups. Smartphone Apps, wearables, claims processing tools, online policy handling and automated processing are all considered InsurTech.
Unlike the banking, health and finance industries, the insurance sector has been slow to embrace the advances in customer-focused communication that have radically transformed how many large corporations interact with consumers.
However, there is often confusion around what value an Insurtech startup adds to a company and many insurance executives find it difficult to determine which is the best choice for them. In order to embrace this technology in its early, and perhaps most lucrative stage, we have compiled the following reasons to invest in Insurtech before its too late:
Investing in digital
Increasing investment in digital platforms is a must for companies in the insurance industry today. Previously, insurance wasn’t a competitive market – new players weren’t a threat as entering the industry was not an easy task. However, times are changing. Companies need to connect with their customers across every platform and efficiently provide them with the help they need. The way to do this is by embracing InsurTech.
Insurance has now become ripe for disruption and companies who haven’t invested in InsurTech are missing out on opportunities to improve their communication platforms. The latest technology will allow providers to engage with their customers and clients on every level that they want.
The most significant attraction of InsurTech is that it has the potential to increase revenue. InsurTech is based on innovation and developers have introduced products and ideas that are a game changer for insurance.
Working with an InsurTech startup means that traditional insurance companies do not have to invest in internal digital hardware because these new products have already been developed and stress tested by leading players in the field. Insurance companies who invest in these startups have experienced a revenue increase . An example is how Allianz transformed the insurance claims process with SightCall, replacing on site visits with video assessments for customers in Spain and across the world. Although it is a big change and investment, it will provide dividends in the long-term.
Chain of opportunities with InsurTech
InsurTech provides a wide range of products and services in many different niches of the insurance industry; whether the focus is on improving your data analytics, customer touch points or product, InsurTech can help. Companies can easily select a provider that meets their needs and can work with them to develop bespoke software.
InsurTech is providing everyone with a chance to invest in the digital market and generate the product that you want. Clients and customers in the insurance industry can do what they want to do more efficiently. The high standard of services and products available using InsurTech means they are too complex for companies to implement themselves. It’s the key reason that InsurTech startups are growing at a rapid pace.
Improved customer experience
Every company needs to ensure their products and services provide a positive customer experience. The customer journey needs an update. Claims are processed in the way that they always have been. Often insurance companies require customers to send in claim information via the mail. You cannot always file a claim online and rarely on your phone. However Insurtech is changing this. An example of this is health insurance. Laya Healthcare and VHI both now have mobile apps whereby the customer simply takes a picture of their receipt and sends it into the app – they’re money then goes straight to their bank resulting in an efficient process and a happy customer!
Rapid development and growth
The experts have managed the startups with such perfection that the growth is almost guaranteed. However there are some factors which can affect the level of success such as timing, not getting funding early enough and having a lack of specialists on staff.
As well as rapid development and growth, InsurTech also provides companies with a competitive advantage. If companies aren’t willing to embrace the technological advancements pioneered by these startups, they risk being left behind by an industry that is finally beginning to change. An example of rapid development and growth would be Everquote, an insurtech company that helps people compare quotes for auto insurance premiums. The company was founded in 2010, and generated over $100 million in revenue in 2015!
InsurTech is forcing the insurance industry to reconsider how it communicates with the public. Insurance companies must step up their offerings to customers. If someone wants insurance to go backpacking for a few days, they want to receive, confirm and pay for their quote with a few simple interactions on their smart device. Ringing a call centers and filling out a manual forms and no longer offer the a satisfying, or efficient, consumer experience.
Times are changing – and insurance companies need to change with them.
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Matrix Recruitment Group is one of Ireland’s leading recruitment firms. 20 years in business, with offices in Dublin, Waterford, Carlow, Athlone and Galway. Matrix specialises in a number of job categories including Accountancy, Financial Services, Engineering, Manufacturing, Quality & Laboratory, Supply Chain, HR, Office Support and Sales & Marketing.