Ways On How Startups Are Changing The Current Insurance Landscape

The current insurance tech startups, or insurtechs, are changing the way a retail customer buys insurance. Insurtechs are now present across the value chain — from the selling of a policy to claims settlement.

The insurance sector has been witnessing technological innovations, with big insurers are looking at the Internet of Things (IoT), wearables, and big data analytics. Regulators and government agencies have also been actively supporting innovation through enablers such as a regulatory sandbox.

But the covid-19 pandemic has forced insurers to become end-to-end digital. Incumbents have had to collaborate with digital platforms and insurtechs to maximize the opportunity.

Their thoughts and solutions? Partnerships between large insurers and insurtechs have the potential to enable more personalized online distribution, predictive underwriting, and more efficient claims management, giving today’s insurance sector an edge when it comes to service and efficacy.

BITE-SIZE INSURANCE

Insurtechs have introduced bite-sized insurance that caters to the specific needs of a buyer. Their focus is on small transactions related to travel and e-commerce, offering protection at the point of consumption.

Lowering ticket size and end-to-end digital fulfillment of insurance products or policies makes it easier for individuals to buy them.

NICHE SEGMENTS

Changing lifestyles, diverse interests, and increasing awareness of insurance are driving new-age demand for specialized products, and several firms have swiftly introduced offerings to cater to such niche segments.

PROTECTION VS PREVENTION

Some companies are adding a risk-prevention element to their offerings, which benefits both customers and insurers.

They have products that enable customers to reduce risks. These include gym memberships, monitoring devices, and so on. Beyond monitoring, these offerings also enable timely interventions that can impact the wellness of customers.

Insurers are also targeting services beyond insurance to improve customer engagement.

Having access to all services on one platform helps drive customer stickiness. Such ecosystems also facilitate the capture of rich data regarding customer behavior and transactions, enabling personalized campaigns and targeted offerings.

Insurtechs of today is not just selling their products directly to consumers. They are also tying up with insurance companies to make their process better for end-users.

And the next big thing could be blockchain contracts, where the customer won’t even need to file a claim. As soon as the event occurs, payment is automatically triggered.

Inmediate is an insurtech startup from Singapore that is using the latest technology such as Artificial intelligence, Distributed Ledger, and NLP, making insurance processing and underwriting fast, cheap, and flexible. That gives for better processes, lower costs, improved time to market, and new revenue opportunities.

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