How is Insurtech Impacting the Insurance Industry?

July 28, 2021
Makayla Santino

Insurance technology, or insurtech, is changing the insurance industry for the better. Insurtech appeals to a younger clientele, improves on the customer experience, and removes typical pain points of transactions. 

What Exactly Are Customer Expectations?

Mobile devices and the Internet are central to the average person’s life today. This impacts customer demands when it comes to services and purchases. Many customers now seek mobile insurance options that can be found in a single platform to increase convenience. The option for quick mobile services has instantly become a demand across all service sectors following the pandemic when online services were necessary for the public to remain distanced.

Appeals to a Younger Audience

The younger portion of Gen X and millenial consumers tend to prefer mobile options for transactions. These demographics are also less likely to remain loyal to a single financial service and are thus more likely to switch insurance policies and other financial services. In sum, younger clients will prioritize remote transactions, comfort, and little to no direct interaction with financial institutions. It is important for companies to appeal to a younger clientele because there is a greater chance to establish a long-term business relationship. 

Improves the Customer Experience

The pandemic has caused insurance and financial businesses to quickly establish mobile capabilities to service their customers amid lockdown restrictions. Prior to the pandemic, mobile apps were seen as a nice perk but now they are considered essential to remain competitive.

The technology allows for improved connectivity and communication through artificial intelligence. Chatbots are able to process and respond to customers’ questions and concerns in a timely manner.

Another benefit is the personalization of products available to customers. Artificial intelligence is helpful in this arena as well. It helps create targeted products which is advantageous during a time when customers want the option of when and how often they can purchase their insurance. 

A third advantage that insurtech brings to customers is end-to-end automation. Automation allows for quicker processing and approval for applications such as home insurance claims. Customers are able to go online or on a mobile app where their insurance claims can be reviewed, approved, and disbursed immediately. 

Removes Customer Difficulties

A major reason for the success of insurtech is its ability to resolve major customer difficulties that are experienced with banking companies. A major focus of the industry will be more attention to increasing customer interest and interaction. 

Many insurers will begin to digitize the ways that pain points can be addressed. Automation and AI can be utilized here so that information, advice, and claim services will always be available to customers at any given time. 

Along with financial technologies, insurtech has also been on the rise. Insurance companies should be adopting new technologies so their business continues to be competitive in a rapidly developing market. Without convenient digital services, an insurance company is much less appealing to a tech-savvy public.

 

 

Resource:

“How FinTech is Transforming the Insurance Industry.” clearbridge mobile, https://clearbridgemobile.com/how-fintech-is-transforming-the-insurance-industry/.

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