3 ways to leverage InsurTech to your benefit
Here are three ways insurers can work with carriers to incorporate InsurTech into their business model.
While still in the early stages, the growth of InsurTech is putting pressure on insurers to adapt in order to keep pace with competitors and remain relevant to customers. However, despite three-in-four insurers anticipating that InsurTech will disrupt their business within five years, a recent PwC survey suggests that only 14% are currently investing in the trend.
Are you among those still on the fence about whether to incorporate InsurTech into your business plan? Here are a few ways insurers — specifically automotive insurers — are working with carriers to take action on InsurTech, and why you should too.
Tap into resources
From mobile apps that track customer behavior, to AI-focused tools that help customize policies, there are plenty of InsurTech resources that can benefit your business and your customers. With more than 90% of PwC respondents saying they expect tools like these to become top drivers for customer interaction in the next few years, it’s critical you get on board as well.
Not quite sure where to start? Ask your carrier.
With a wealth of experience thanks to viewing the industry from a variety of angles, the right carrier partner can provide critical insights on which of these tools you should key on when developing a comprehensive plan. When you have the right tools ready to serve your customers, you’re setting them up for a successful experience. Speaking of…
Related: How AI plus behavioral economics are transforming insurance
Focus on customer experience
When introducing a game-changer as big as InsurTech into your business structure, it’s important that you don’t lose the plot. Ultimately, any new addition should be introduced with the goal of improving the customer experience. Your carrier partner can assist you here as well, guiding messaging to help explain the ‘why’ to your customers.
While benefits like faster processes and minimized wait times may seem obvious, consistent messaging on a new initiative is vital. From the first ‘hello’ to claims, renewal, and more, a clear message will help customers better understand the value you’re providing — and go a long way toward building customer loyalty.
Leverage more data
Finally, a carrier partner can also help you dig a little deeper into customer behaviors to allow you to truly tailor coverage. Working together, you can employ useful data like auto telematics to evaluate risks and improve your policy offerings. Not only does this provide customized coverage for customers, but it also increases speed and decreases costs.
Keep in mind, though, you may need to get customer buy-in to access their driving data. Once again, messaging will be key. Your carrier can help you craft the conversation to explain to customers how driving data works, and that allowing data access is in their best interest.
According to PwC, “many believe insurance is on the brink of a major disruption, but few are putting InsurTech at the heart of their strategy.” The advent of InsurTech provides ample opportunity for insurers. If you’re still unsure about how to introduce InsurTech into your business plan, tap your carrier partner for help — and don’t get left behind.
Related: Using technology to improve the claims process
Joe Alberti is Vice President of Specialty Programs and Products at Fortegra where he leads underwriting, merger and acquisition, product management, sales, and accounting efforts in the company’s specialty division. Alberti can be contacted through his website.