Various types of tech are changing insurers’ approach to appealing to prospective and existing customers.
Insurance technology, also known as InsurTech, is pushing the industry in a fresh and targeted direction for all stakeholders.
This tech is a vital component to appealing to a younger generation of consumers.
Insurance technology deal values are up by 32 percent year over year as insurers and investors push to upgrade the industry and improve its profitability, said a recent Property Casualty 360 report. The report cited data and conclusions from the recent Global Trends Analysis 2018 report from EY. Those investments affect every stage of the insurance supply chain, including:
- Insurance companies
- Agents
- Brokers
- Vendors
- Policyholders
Insurance technology is helping insurers to stand out in a highly competitive industry.
Insurance companies may be known for using the latest in modeling and assessment technologies in order to calculate risk and measure covered damage. In those areas, insurers continually push to stay ahead as this use of InsurTech offers widespread cost efficiency and savings. However, those same insurers are often viewed as having fallen behind the times in terms of the tech consumers expect to have available as a part of their experience.
Insurers are aware of this fact and are working hard at either developing the technology they need in-house or by partnering with the right start-up companies that will let them stay ahead of their rivals. With a massive millennial generation rapidly becoming the most appealing target consumer generation, a seamless, multi-channel, tech-based customer experience is critical for insurance companies.
It is for precisely this reason that insurance startups like Lemonade have achieved explosive success based on insurance technology. They managed to whittle down the experience to a relatively simple one. Consumers can instantly obtain a homeowners or renters policy by phone or online with a laptop or mobile device. The entire application process is fast and automated, which is precisely what the majority of millennials expect.
Similarly, agents are beginning to use insurance technology in the form of smart assistant apps. These allow them to move away from trained experts that could offer a list of possible options – something many consumers expect to be able to find online on their own. Instead, insurance agents are using InsurTech to become risk specialists with an understanding of their customers’ diverse and unique coverage requirements. Tech lets them find out facts and options quickly so agents will have time available to provide value to existing customers.
