Insurtech startups are getting stronger in 2021.
After the pandemic, the insurance business accelerated as people started taking insurance seriously. The unforeseen tragedies, fear of losing lives, businesses, and assets made people more aware of their insurance needs. For insurers, the sudden increase in demand for insurance comes with immense opportunities and challenges. Compared with insurance businesses that resist the use of the digital platform the insurtech is growing faster. Insurtech companies are taking advantage of digital availability. And insurers who abandoned the idea of digital innovation and up-gradation end up facing customer acquisition and customer retention challenges.
Reasons, why insurtech startup is getting stronger in 2021:
Early adoption of technology:
It is challenging for most startups to survive the first five years of their business. To stay in the competitive market, startups need a strategy and innovative idea, along with the proper allocation of technology. Insurtech companies are taking care of all the digital requirements of their internal and external customers. They focus on the easy and fast adoption of novel technology for their business. The insurtech companies, focusing on making the customer’s life manageable through digital assistance. It is not easy for well-established insurance companies to transform into a complete tech-savvy business. Insurtech companies adopted digital policies as early as possible. The insurtech companies focus on providing information, online support, and easy application to their customers. They focus on technology and understand its benefits, flaws and try to mould and adapt it as per the business requirement.
Nowadays, the workplace is merely a space for the employee required through normal office hours. New generation employees need a workplace where they can easily collaborate, connect and contribute to the work. To solve business problems and work productively, employees look for instant solutions. The digital collaborative platform is an instant solution for the issues. Just like a customer, employees also consume information from the internet. With the information overload and availability of more tools, many people started creating their own content rather than merely consuming the existing content. The data shared by these people may or may not be authentic. The need to share authentic and accurate information with employees is much more important. To keep employees updated with the right information insurtech companies leverage the digital platform.
Focus on customer experience:
Being digital allows the business to become more proactive while serving customers. When the right technology is implemented, it thrives in new opportunities. The insurtech focuses more on the digital customer experience. Digital experience refers to the experience a user gets through digital devices. The first interaction with the business directly impacts the decision of the customer. The customer-experience manages the relationship with the customer and makes them not turn away. The first impression of the digital platform plays an important role in customer acquisition. A good customer experience makes the journey effortless one-click on the device and customers can apply for the insurance, purchase the policy, take a look at the new product and file a claim.
Secure Data access:
Gone are the days when antivirus and firewalls are the sole security measures. Now the threats like ransomware, phishing, cloud jacking, AI-driven cybersecurity are the areas of concern. Customers are more aware of cyber threats and want the insurer to use data securely. When a customer submits their personal information, they show thrust and demand authentic use of information in return. It became the responsibility of the insurance business to handle and protect customer information. For insurtech, data that they collect, store, and exchange is a valuable asset. Insurtech companies use the method of data encryption while sharing data. The company maintains online cloud stores that only allow employees to view the customer’s data. Employees can review the applications and make changes as per their needs.
Today’s internal and external customers demand the same experience in a professional environment that they have with technology in their personal lives. Demand from the insurance industry is increasing, the competition is intense, and it is challenging for a business to achieve such high expectations. Insurtech companies focus on partnering with companies that know-how and where to deliver the results. Insurtech partner with the tech companies which use agile methodology and focus in implementing the results. Insurtech companies choose technology-partners carefully that provide on-demand services and make the customer’s life easy and sophisticated.
Easy policy application and file claim :
When it comes to applying for a policy or filing a claim, there were multiple steps involved. Now insurtech companies, working on making customer’s lives easy. The customer can fill the application online and get reviewed by the insurer. Documents needed for the policy application uploaded from anywhere in the world through the devices. The customer needs a mobile device and a good internet connection. When a customer files a claim, it is the most sensitive time as the customer needs instant responses from the insurer. Digital platforms give more control to the policyholders to submit the photos or video of the insured property. The insurance claim is the step that needs to be reviewed and examined properly. An insurer can review and give a fast response to the policyholder. The easy application for the policy and easy claim process help to make customers feel delighted.
A good business comes with numerous challenges and to overcome challenges businesses need a good strategy. Insurtech takes advice from experienced digital experts for creating these strategies. These experts bring changes in the performance of the business through their tried and tested knowledge and skills cost-effectively. The advice from the experts helps to make the strategies as per the business and customer requirements. It is not about how you understand the technology it is about with whom you work and who contribute to your business. Insurtech focuses on hiring experts and taking advice from them for more precise business improvements.
Insurtech focuses on making the business more technology-driven by implementing technologies as per the business requirements. Technology should be as per the need of the internal and external customers.