Current traditional insurance model has become unsustainable given the new platforms and technology showing up so often. Only those insurance companies which can effectively respond to the change will survive. The key factors in their sustainability will be their customer focused and flexible model, fluid platform and workforce.
Understanding the customer and adapting to the change constantly is the key to stay ahead of the competitors and emerge as leaders. On the other hand, those choosing to wait and watch market behaviour will struggle.
How to stay in speed with changing technology
Collaborate to get success
Insurance companies are going beyond their standard reach for inspiration. Rather than staying ideal and get threatened by big platforms like Google, Amazon and Apple, insurance firms are being smart and joining hands with other brands to reinforce their status and reach new customer segment. It will also help them to provide services with increased efficiency and digitally.
Emerging technologies like IoT and Data Analytics helping insurance firms with improved quality of data and giving them insights to offer better-personalized service that customer respects. There are numerous possibilities, like healthcare notifications, commercializing agriculture insurance, for preventive measure monitoring drivers etc.
Direct business with middle-market
Most of the middle market population in America does not hold any insurance at all. New technology advances make it easy to understand the middle market, help in developing short simple offers for not just a division but for individuals as well. This provides a good chance for penetrating an unexplored insurance market.
The customer is eager to share more information with an insurance company who can offer optimized, personalized coverage, reduced premiums and security benefits.
As per a survey –
“South African carrier Discovery’s managed health program, Vitality, rewards customers for maintaining healthy lifestyles, improves the relationship with customers, and delivers a better-than-average claim rate”.
Revolutionizing a lifestyle decision-making is achievable using advanced technology like AI, ML and Data Analysis.
Methods of assessing, mitigating and funding risks are already in a state of change. Concepts like cyber insurance, independent vehicles, and the sharing economy are some latest risk for the commercial market.