Team AckoJul 22, 2021
For years, the insurance space remained unchanged. With the help of advanced technology, new inventions, and a fresh approach toward insurance, ancient business models have finally been replaced. To drive this change, InsurTech or Insurance technology has played a vital role.
In recent years, the insurers have paved a fresh path to reach their business goals. This path leads to opting for a customer-centric approach rather than simply focusing on the sale of a product which provides zero gratification at the time of purchase. Before InsurTech came into being, the Internet had begun playing an important role in various domains. Everyone had a website and every insurer had to sell a product which was complex in nature. For a common man, insurance meant only three things – life insurance, car/bike insurance sold by dealers, and mediclaim policies for the family. InsurTech helped insurers simplify a product which was so much more than only life or the mandatory aspect of car insurance.
Today’s customer is a busy person. He does not have time to listen to an elaborate and multi-layered explanation of a product. Neither do insurers have the benefit of uniqueness. The competition is becoming aggressive with each passing day. To keep the target audience satisfied, you need to stand out as an insurer. In the era of software updates, you need to present your customers with processes that are up-to-date and not some boring traditional 10-paged script which follows the “one-size-fits-all” model. This is where InsurTech will help you. It provides a spot on a solution to update your processes and products.
The customer wants their insurers to create custom products. Customization no longer means only sending emails which address the customer by his/her first name. Customers are ready to share personal information to an extent if they find doing so will be beneficial for them as your customer. InsurTech has facilitated the creation of deep level customization, such as creating customized products, completely personalized communications, highly equipped relationship managers, and more. These things lead to a fantastic customer experience which in turn is highly beneficial for sales.
Companies that have embraced InsurTech are in sync with the current trends. Now customers are looking for quality, process transparency, simplicity, affordability and most importantly speed. A domain like insurance is prejudiced for being complex, expensive, and even unfair. This attitude is even justified in a certain way as the customer was not a priority as per the previous business models. This fact is changing because of InsurTech.
Startups are educating their customers and helping them understand why insurance is important, the different types of insurance available & their benefits. Startups are providing good quality products which add value to the customer’s life. They are introducing transparency in the way they execute their processes. For example, a customer can be upfront with the insurer and ask them any doubts about the calculation of the claim amount. This attitude is becoming the point of attraction for customers leading to the success of Startups who use InsurTech.
E-commerce websites which offer fashion products or groceries have changed the mindset of customers. To buy something, going out, searching for the product, negotiating the price and purchasing it is no longer the sole option for purchasing that product. Today, the same product can be easily searched, selected and bought in a matter of a few clicks.
The competition is heavy, options are numerous, websites that offer this product are many. The decision of buying it from a specific seller depends upon the customer. Same goes for insurance. Customers should be given a stronger reason to pick a specific insurer over others. Thus, remember that top-notch processes, services, and pricing leads to a perfect customer experience.
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