Pandemic Reshapes and Recasts Insurtech Industry

Customers crave a frictionless end-to-end digital engagement. Insurers which continue to innovate will prosper.

Pandemic Reshapes and Recasts Insurtech Industry
Pandemic Reshapes and Recasts Insurtech Industry
Chirag Buch - 14 June 2021

As our worlds shrink to the size of our screens, we are undergoing a massive digital revolution. Ever since the pandemic hit, the world has come to a halt. In India, some sectors are limping back to normalcy only now. Meanwhile, companies are being prompted to ramp up their digitisation efforts, as the pandemic keeps testing human patience and adaptability. The situation continues to evolve as you read this.

Like other sectors, global insurance markets too have faced quite a few blows — business interruptions, weaker premium growth prospects, capital market volatility, economic slowdown due to the lockdown and so on. Those who have grown in a pandemic-hit world have been the most agile, disruptive, digital-first organisations.

Leading with innovation

The pandemic has set a fine example of the dynamic and unpredictable environment we live in, and how being futuristic can help tackle or minimise uncertainty. Integrating technology offers a lot of benefits, along with a seamless, frictionless experience. It allows insurers to tap into segments which earlier they were unable to reach out to. This change was much needed, irrespective of the pandemic. No doubt, Covid accelerated this process manifold and pushed this traditional sector to undergo significant innovation changes.

The pandemic has also changed customer expectations. To fulfil these, companies need to leverage their intelligent technology such as AI, IoT, analytics, cloud and more. The industry is seeing massive demand for speed, personalisation, and modernisation.

To remain competitive, it is a must for insurers to undergo digital transformation. The shift from traditional to digital space will fulfil their need for speed and guarantee expansion into new markets. It will also provide them with multiple collaboration opportunities, new roles and revenue opportunities. When life returns back to normal, insurers must provide multi-channel access to meet the expectations of today’s consumers. This way, they can stay at the top of their game by catering to all kinds of customers and markets.

Innovative tools for the intelligent customer

Today, people are more technically advanced than ever. Everything can be handled with more efficiency digitally, from the sales process, customer support to claims. Insurers need to ensure they have reliable end-to-end operation management and digital platforms. Data analytics and artificial intelligence helps improve efficiency, lowers cost and provides a higher level of customer satisfaction.

Delighting customer is the key

End-to-end digitalisation and engagement will provide a frictionless experience that customers crave. To retain customers, insurers need to ensure they have a smooth buyer journey. Insurers need to simplify it as much as possible with minimal interruptions. The product offering should be more diversified and also provide flexible coverage. This flexible IT infrastructure is needed so that customers’ expectations are met as per their needs. Innovation and implementation will be constant after this outbreak. Companies that constantly strive to innovate and improve their customer experience will make it in the long run and thrive. Many insurers are now venturing and collaborating with companies of different sectors to provide more coverage options.

Say yes to real-time interactions

Insurers need to ensure they adopt a customer-centric approach by combining the right digital capabilities to stay ahead of the game. In a nutshell, embracing technology, innovation and tech-enabled solutions is the key to remain relevant post-pandemic. We see many legacy-minded insurance companies getting comfortable with the idea of integrating technology, thanks to Covid-19. Collaboration between insurtech start-ups, technology service providers, carriers, and their distribution partners will continue to grow and will keep on pushing the insurance industry forward for the better.

The writer is a managing partner at SE2 India

DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.