Technology has significantly reduced barriers to access financial services. Digital changes have enabled the users to unlock several doors. Today it is very hard to imagine life without mobile devices with such devices and technology, at last, has changed the game a lot in all industries. The internet, mobile devices, money and technology go hand in hand so that they become the core elements of our lifestyle and also have changed how nearly every industry does business. The financial sector has experienced a big boost due to technological integration. There are rising mobile app development in the insurance industry and despite the industry’s complicated, firmly rooted environment, there is more opportunity than ever to introduce customer value with mobile solutions. Bankers revealed during this amalgamation and now the insurance sector has got a taste of the nectar generated by churning finance and Technology(FinTech). The rise of FinTech has changed consumer behaviour, and advanced technologies are disturbed by the insurance industry. In addition to this, Insurtech and mobile app technology startups continue to redefine the customer experience through innovations such as risk-free underwriting, on the spot purchasing, activation and claims processing. As a result, transaction value in Indian FinTech is expected to have an annual growth rate of 18.8%.
Insurers should always look to banking institutions who have entered the FinTech space as an inspiration for digitization. Banks are partnering with FinTech enterprises to run at lower costs and alleviate the reliance on legacy systems. As a result, banking institutes are able to retain clients, whereas FinTech companions improve customer experience with user-centric, mobile solutions.
The emergency for financial services to offer digital products has hit the world hard and is moving faster than originally anticipated. The insurance sector needs to view entering the InsuTech environment as an opportunity to create partnerships and build mobile strategies focused on providing value in this increasing digitized financial ecosystem.
Here in this blog, we’ve summarized the key findings from the Insurance industry to share with you
Giving importance to Younger Clientele
As per the McKinsey Global Institute, 75% of InsurTech business has primary served retail clientele. Younger generations use mobile apps solutions for financial transactions. Using the mobile transactions will be less loyal for the financial companies. It will be more likely to exchange financial services and insurance policies to satisfy the changing requirements. Most of the young people will give value when there was a convenience, remote transactions and also little direction with the financial institutions as possible
Winning the heart of younger customers is fruitful for the insurers. Business from a millennial is more profitable than opening a new policy with a baby boomer as they provide us with abundant chances for long term business, in other word words it will be the lifelong business. Younger Insurers will accept technology advancement. Potential customers will be provided with these mobile app solutions and optimizing with InsurTech is the way to gain loyalty with younger policyholders.
Customer Expectations for Insur Tech
Mobile apps playing a key role in everyday life of common people; they have created a massive wave of interruption in every area of business and even in the financial services there was no exception. Day to day customers are looking for new services their thoughts will be variated from person to person and so they are looking for mobile insurance solutions which integrated several areas of assistance on a single platform.
FinTech fosters customer engagement. Every step of the user journey is made convenient, problem areas are worked on, and solutions are provided almost simultaneously. Many insurance companies are more aware of and embracing this shift in consumer demand. Rather than panicking at the possible threat of InsurTech and FinTech competition, insurers are looking at these startups as catalysts for innovation. Finally, FinTech set the high bar for the insurance industry. Customers are expecting higher quality mobile experiences from all their financial services, similar to the experience they receive from Apple, Google, and other heavy-hitters.
Eliminating customer pain points
FinTech and InsurTech majorly focused on the customer pain points that they face with the banking companies so they become successful. They majorly tried hard to eliminate them. They work with the passion in which area the customers are facing issues and focus on those areas by that there was a rise in customer interest and encouraging interaction. Policyholder pooling is one of the social engagement tools to lower insurance rates. I
Immediacy is also considered as the growing tactic for insurers looking to digitize addressing customer pain points. The customers run the risk if the customers can’t get the information, advice, or make claims at any time.
Best way to respond to InsurTech
There are a number of different strategies you can adopt to prepare for instant evolving InsurTech environment.
Gain an Internal Focus:
It’s a bit difficult one know the evolutions of InsurTech ecosystem. Involving in InsurTech accelerator programs or hosting hackathons with InsurTechs are both helpful ways to become familiar with the value of entering the environment
Participating with Community:
Get inspiration and look for opportunities to collaborate. Multiple perspectives on the industry are best supportive to identify new ways to produce value. Building relationship with insurance companies works with InsurTech to develop POCs or launch incubator programs.
Take Action:
Certainly, Insurers have to take action, whether it’ a collaboration, investment or changing the organizational culture.
Improvising the customer experience with InsurTech
Financial service companies can get to know the value of the mobile app solution. FinTech recent survey revealed that there will be significant growth in customers using mobile apps by 2020 and 75% says that there will be a drastic increase of FinTech focus on the customers.
Same as FinTech & InsurTech have many benefits insurance companies can leverage. These will be free from legacy products and processes; they are capable of using trending mobile app development technologies and also target specific value pools despite off offering long end-to-end solutions that actually don’t meet the individual customers’ needs. One final thought, Insur Tech’s can go to market entirely different than traditional insurance companies. By partnering with InsurTech enterprises, insurers can offer:
- Enriched Connectivity: Artificial Intelligence Solutions can avoid friction at many touch points in the customer journey. Chatbots will be able to understand and act on customer query at any time. With deep learning, chatbot solutions can understand interpret sentiment to identify when to introduce a human agent.
- Personalized Product Offerings: Artificial Intelligence is the best mobile app development technology helps InsurTech that offers targeted products to the customers. As today’s customers want the flexibility to purchase very specific insurance and they want the ability to decide when they can purchase and how often.
- End-to-End Automation: This concept is very easy and simple. Customers are ready to leave the manual claims processing behind. It allows the user to report car insurance claims to their providers in real-time and leave the accident site immediately providing there is little damage to the vehicles.
In the near future, enhanced data collection from cars, wearables and smartphones will further enable claims automation. If accidents occur, diagnostics from these devices will automatically contact insurance providers, process claims immediately, and even withdraw payment from the designated bank account.
BottomLine
Insurance companies are already got ready for transformation, to support new business operations and also to maximize efficiency. To make progress, insurance companies will have to look to InsurTechs for inspiration and partnerships. While InsurTech is posthaste transforming the industry, it never aims to overtake traditional insurance, rather it is unlocking the doors for both counterparts to increase the power chain and increase mobility overall.
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