The insurance sector is in line for a bit of disruption and big players might want to start looking at startups for inspiration on how to adapt their business.
While startups are lean and agile by nature, chief technology officer at e4 Ryan Barlow says that big firms could learn a lot more from startups, particularly how they leverage technology for the benefit of the client and themselves.
“It is no longer just mobile-first, thanks to the dominance of technologies such as AI [artificial intelligence], ML [machine learning] and IoT [internet of things] and start-up companies taking full advantage of this phenomenon,” says
Combining those aforementioned technologies not only helps the firm but the customer as well. Consider for a moment Naked.
The insurtech firm launched a product of the same name this year that puts control of your vehicle insurance into your hands. Customers are able to suspend and apply for cover as they wish without having to talk to a broker. It’s fast, it’s mobile first and the customer is the focus of the product. Simply put it’s what customers want.
This sort of model is set to become more and more popular according to Barlow.
“The individualised risk profile approach will prove to be very attractive to younger, more tech-savvy clients, who don’t see the value in investing more generalised and inflexible long-term approaches to insurance policies,” the CTO says.
This approach has the added benefit of giving the firm itself data points to analyse and study. From there products and service can be improved.
Surprisingly Barlow goes on to say that the insurance sector has to become more customer-centric and companies that recognise this while leveraging technology will succeed in the future.
“Success in this sector is about engaging with customers, engaging in a story-teller approach, focusing entirely on the user experience. If the brand gets this approach right, utilising cloud-based and inspired technology, success is almost a given,” concludes Barlow.
[Image – CC 0 Pixabay]