Digital disruption & insurance

While we continue to work from home and experience global lockdowns, now more than ever digital services have become a necessity, unlocking tremendous value and opportunity, particularly in the insurance ecosystem. Digital technology has completely revolutionised the way we interact with brands. Customers now fully expect an end-to-end digital experience. It’s how they want to browse, buy and book services.
Social media and the proliferation of smartphone and tablets mean that people can research, compare and purchase anytime, anywhere. Certainly, this is the case for the experience offered by retailers and large global brands like Amazon, Spotify and Netflix but the majority of insurance providers have yet to embrace this. From the application process to claims processing, the steps involved are time-consuming and complex.

Insurtechs are transforming the online customer experience

According to Ernst and Young’s 2020 Global Insurance Outlook, ‘the insurance industry is lagging behind other providers in developing innovative and customer-friendly digital experiences’. This is where modern players are gaining ground. Insurtech companies, who are incorporating smart technology into the traditional insurance process, have transformed the category entirely. They offer an agile, data-led model, using automation and technology to improve efficiency.

We have seen some innovation in the sector over the last few years. For example, Vitality Corporate Services Ltd.’s health programme gives members points for healthy behaviour, which are recorded through wearable activity-tracking devices and can be exchanged for rewards through several participating companies. The KPC Group has introduced an award-winning, data-driven platform to make the on-boarding process more nimble. They simply ask customers just 3 questions and provide them with an immediate quote.

Customers are demanding faster, more seamless settlements

High on the list of frustrations from those seeking to avail of their insurance policies is the time it can take to make and/or receive a claim. At best, this might take a few weeks but frequently it can involve months of back-and-forth to see any exchange in funds. In the 2019 Accenture Financial Services Survey, over 80% of respondents would be willing to share data to receive a fast-tracked claims settlement.

Overall, more than 75% of all respondents said they would be willing to share the data required for benefits such as personalised offers, more efficient and intuitive services, and more competitive pricing.

Combining the best of both worlds

Insurtechs can help traditional insurers streamline processes and achieve operational efficiency with technology and innovation. With their agile structure, start-up mindset and data-driven model, insurtechs are strongly positioned to address customer needs quickly.

Traditional insurers hold strong brand equity, have an established regional footprint and deep insurance know-how, so there is opportunity for insurtechs to collaborate with them in order to quickly scale up, increase customer conversion and revenue.

Meeting expectations

Customers expect a consistent digital experience from the conclusion of contracts and consulting to the settlement of claims and reimbursements. Most processes are still paper-based and staff are forced to make contractual changes in writing. Emerging players are using AI and behavioural economics to offer app-based insurance where the cost model can depend on the customer’s usage and/or behaviour.

It’s an industry undergoing seismic changes - the true winners will be those who offer seamless, agile and intuitive business models, in tune with how people live today.

About Companjon

Companjon is Europe’s newest technology company specialising in tailor made add-on insurance solutions. We partner with industry providers to bring fast, flexible and fully automated solutions that are tailored to their customers’ online bookings and purchases - ensuring that they have peace of mind if plans change. From claims to payouts, the process is seamless, flexible and entirely digital.

Get in touch with our team to learn more about how Companjon can be the safety net for your customers.