Have you noticed how the biggest names in insurance are now partnering with companies that are insurtech?
As more and more technology permeates our lives, insurance companies will inevitably have to change. But rather than taking on insurtech companies on their own, these big-name insurers are teaming up to help them integrate better with their systems. This, in turn, helps insurtech companies attract more business because they can now offer a broader range of products and services to their customers.
Traditional insurers have an insurtech company with the expertise to implement or improve certain technologies. They can prove their commitment to offering more modern, customer-focused services by taking advantage of this.
Here are the advantages of working with such companies.
They Understand The Unique Needs Of Their Customers
According to reports, in 2019, private health insurance providers in Australia spent over 8.6 billion Australian dollars on personal hospital costs.
As they are small and agile, insurance tech companies can quickly adapt to market changes and identify opportunities for new products. Because they have direct access to customer feedback, insurtechs can provide insurers with insights into what services would most benefit their client base.
It gives the users the chance to test their services with customers before offering them to insurers to tailor their products to meet specific demands.
They are also not restricted by existing infrastructure. Insurance companies may have established business models that don’t require significant changes or upgrades. Still, insurtechs will not be constrained in this way and can therefore come up with products that could become valuable for insurers.
They Can Help To Expand Services And Grow The Customer Base
Nowadays, customers are demanding than ever before, from a shorter claims process to a smoother claims experience. While these changes might initially seem daunting, insurance companies that work with insurtechs are provided with the tools to run the business more efficiently. For example, insurtechs can help insurance companies digitize their claims process or introduce new products through APIs. It means that now customers do not have to wait weeks for a payout, as they will be able to complete an electronic form and see the money deposited into their account almost immediately.
They Can Offer New Products And Services With An Unsurpassed Customer Experience
With the help of insurtechs, insurers can provide customers with a smooth claims process that is almost entirely paperless.
After all, these kinds of improved services will help insurers retain existing customers and attract new customers in a cut-throat marketplace. It also helps to add value to products and increase customer loyalty, which is essential if insurance companies want to remain competitive.
They Can Improve Their Existing Service
Insurtech companies are responsible for customer engagement, while traditional insurance companies are mainly responsible for risk assessment and payment of claims.
Insurance techs provide their expertise to help insurers streamline specific processes, enhance technology or develop new products. An insurance company can also use this opportunity to improve its existing service.
They Offer Secure Data Storage Solutions
According to the Ponemon Institute, UK businesses lose an estimated £4 billion per year due to data breaches (on average, it costs £190 per exposed record). As data breaches become more common, the public is increasingly concerned about sharing personal information with businesses.
Insurance companies can solve this problem by working with insurtechs. They must comply with strict regulations such as the Data Protection Act and General Data Protection Regulation (GDPR) that protect user data.
Insurtechs ensure that all records are secured and protected, so customers can be confident that their information is kept safe at all times, a win-win situation for both parties.
They Offer A Diverse Range Of Solutions
Insurance companies have to deal with many clients, from individual consumers buying car insurance to large organizations purchasing public liability insurance. With this in mind, it is difficult for single insurers to keep up with their clients’ demands and offer a truly tailored solution.
Yet insurtechs can do just that by providing client-specific products and services easily integrated into an existing business model. For example, they can offer their technology or extend the insurance company’s team by providing additional customer services.
While insurtechs provide a range of benefits to traditional insurers, it is essential to remember that not every insurtech is suitable for every insurer. Hence, you should first determine your needs and work closely with one or more insurtech companies that can provide ultimately cost-effective solutions.
Conclusion
Insurtechs can help insurance companies provide a better service to customers and improve their existing service. They also offer secure data storage that protects users’ information and a diverse range of solutions that satisfy the needs of different clients.