The growth of insurtech is putting pressure on insurance companies to adapt, to keep up with both competitors and consumer demand. According to a PwC survey, three-in-four insurers anticipate that insurtech will disrupt their business in the next five years, yet only 14 percent said they’re currently investing in insurtech offerings.
If you’re one of those companies that’s still on the fence, here’s a look at how insurers — specifically automotive insurers — can utilize insurtech to the satisfaction of both their business and their customers.
Investing in resources
From mobile apps that track customer behavior, to AI-focused tools able to help insurers customize policies, it’s critical to invest in resources that can help provide a high-value customer experience. More than 90 percent of respondents in the PwC report said that in the next five years, they anticipate website access and mobile apps to be the top two drivers for customer interaction with the company. An underwriting partner can provide invaluable insight in developing apps or other tools to ensure a streamlined customer experience from start to finish.
One of the biggest benefits of those kinds of tools is the trove of new data they provide. By using updated technological tools to analyze driver behavior, insurers can work with underwriting partners to dig into data and, in turn, develop personalized coverage for customers. Additionally, data analysis can help insurers evaluate risk and improve the types of policies being offered.
Enhancing the customer experience
Not only does an underwriter provide insurtech companies with custom plans for drivers, but they can also help partners better market themselves…and ensure that it’s all done on the level. The result? Greater value for the end customer from initial touchpoint, to claims, to renewal, and more.
It’s clear that insurtech spells opportunity for auto insurance companies. Want to make the jump but not sure where to start? Working with an underwriting partner to help handle the relationship logistics is a great way to ensure a smooth transition. And don’t worry: while 30 percent of insurtech startups are connected in the distribution space (meaning they leverage digital technology to create an innovative customer experience), most of them have no actual experience in the insurance industry — so they’ll need some help too.
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