The perfect match: insurtech and the insured experience
Customer satisfaction and technological innovation are paramount for insurtech companies. Industry experts share with Lauren Haigh the novel digital solutions designed to meet insureds’ expectations
Customer experience and satisfaction is at the heart of most industries, not least the insurance sector. Today’s insurance customers want, and indeed expect, products, services and experiences that are efficient, high-quality and convenient. They also want affordability, personalisation and innovation. Insurance providers are harnessing new technologies to deliver on these customer wants and needs. Artificial intelligence (AI) and machine learning (ML) tools can analyse data to shed light on changing customer behaviours and preferences, while automation technology enhances operations, and digital claims processing streamlines the claims experience.
Insurtechs are at the forefront of the digital insurance revolution, leveraging new technologies to transform the customer experience. “We are all consumers and when we use a service that provides speed, convenience and intuitive solutions to meet our needs, it leaves a lasting positive impression. It’s the same with insurance products,” said Sid Mouncey, CEO of Blink Parametric.
Digitisation makes everything possible
Digitisation presents ongoing opportunities for insurers and insurtechs to deliver an enhanced online experience. “It’s central to enhancing the insurance customer experience,” confirmed Matthias Naumann, CEO of Companjon. “It is the enabler of seamlessness; at its most basic level, it has removed the need for paper documentation and unnecessary human interaction, both of which can create hassle for customers at various points in the insurance journey. Digitisation has also helped create efficiency and provide insight into various processes from quotes to claims, lending to an overall enhanced customer experience.”
Crucial to delivering seamless integration and interoperability is an application programming interface (API) that consolidates functions and services. A spokesperson from battleface told ITIJ: “A unified, API-driven tech platform is key to delivering consistency when it comes to customer experience, even if multiple companies are involved in delivering those services. The end-to-end digital experience, from buying a unique and specific plan for a trip to filing a claim, and all the customer touch points in between, is where insurtechs can truly add real value and create loyalty.”
A unified, API-driven tech platform is key to delivering consistency when it comes to customer experience
Mouncey concurred: “Digitisation pretty much makes everything possible. Our parametric platform is designed to work on a wide range of real-time big data feeds that connect into it via API. This means we can ingest data from multiple sources. Big data such as flight delay reporting allows us to track flights and monitor them worldwide for travelling insureds and to continuously check if any reported delays meet the threshold for any specific proposition for any travel insurer or brand partner.”
Customer centricity: a strategic pillar
Customer centricity is fundamental for insurtechs, enabling them to differentiate themselves and their services and build trust among customers. By creating products and services that are responsively tailored to the needs of their customers, insurtechs can stand out and establish and maintain a loyal customer base. “Customer centricity is a strategic pillar of our business,” verified Naumann. “We tailor our solutions, which are powered by a combination of our leading underwriting skills and the latest technology, around the customer journeys of our business partners, ensuring that the whole customer experience is seamless and, ultimately, satisfying. One way we do this is through A/B testing of our solutions in our business partners’ platforms, acting as a real-time feedback loop for how effectively we are engaging the end customer and driving value for that business partner.”
Regular feedback loops and data-driven insights help us continuously refine our offerings, ensuring they align with customer expectations
Communication and transparency are key pillars of a customer-centric approach and apply to policy terms, claims processes and pricing, boosting trust and integrity. “Customer centricity is at the core of Qover’s mission,” stated Quentin Colmant, CEO and Co-Founder of Qover. “We prioritise transparency, clear communication and efficient service delivery. Regular feedback loops and data-driven insights help us continuously refine our offerings, ensuring they align with customer expectations and provide the best possible experience.”
Accessibility is another important part of customer centricity. “At Scanbot SDK, customer centricity means ensuring that our document-scanning software is accessible and easy to use for all users, not just the tech-savvy,” remarked Christoph Wagner, CEO of Scanbot SDK.
Mouncey further underlined the importance of accessibility: “Insurtech solutions are typically the first responder across the travel sector. We alert the customer to a delay or cancellation and offer immediate assistance, so it’s important that those options and the processes we use to deliver them are simple, accessible and provide meaningful support to alleviate some of the frustration of the delay for the customer.”
Changing expectations require a dynamic approach
With customer expectations changing and evolving, it’s important that shifting wants and needs are monitored and responded to. “Insurtechs must be innovative, versatile and dynamic – responding to a changing market is central to our function,” underlined Mouncey.
Advanced data analytics and AI-powered tools provide valuable insights into customer behaviour and claim trends
Tech plays an important role here. “We draw insights from big data, ML and AI to identify changing customer expectations as well as ensure we help our business partners meet those new expectations as quickly and effectively as possible,” Naumann told ITIJ.
Colmant agreed: “By continuously monitoring trends and leveraging advanced data analytics, insurtech companies can swiftly adjust their offerings to align with customer expectations, ensuring a seamless and engaging user experience.”
Indeed, being responsive is critical for insurtechs. “Insurtech solutions are highly responsive to changing customer expectations due to their agile and innovative nature. Prioritising flexibility and adaptability, these solutions can quickly respond to market demands and customer feedback,” he added.
Prioritising hyper-personalisation
The long-standing need for personalisation has accelerated, leading to an emphasis on hyper-personalisation, in which real-time data is harnessed to offer highly customised and dynamic insurance services. Not only is it necessary that digital strategies match evolving customer preferences, but there is also a need for customised services that meet unique customer requirements.
“For decades, the travel insurance market has been filled with one-size-fits-all travel insurance products, with limited benefit upgrades standing in for customisation,” said the spokesperson from battleface. “And, with travel insurance being distributed primarily through digital channels, we believe in giving travel distribution partners the ability to custom-build their own travel insurance products that are hyper-relevant to their markets and offer a unique value proposition specific to customers’ needs.”
Advanced analytics can be used for personalisation, with customer data leveraged for insights. This enables policies to be tailored and premiums to accurately reflect usage and risk, and, ultimately, means enhanced value for both insured and insurer.
“Companjon has been investing in AI-driven solutions for many years as we believe this will drive hyper-personalisation in the future,” said Naumann. “We see personalisation as not only a key driver of customer engagement but also a driver of value to both underwriters, like ourselves, who will have better managed risk portfolios, and our business partners, who will see higher conversions on the embedded offering. It’s a win-win-win for customers, businesses, and insurance partners.”
Embedded insurance heightens convenience, and combining it with hyper-personalisation ensures the coverage offered at the point of sale is entirely relevant. “Embedded insurance, in particular, allows for hyper-personalisation rather than a one-size-fits-all approach that tailors products to individual needs and preferences,” stated Colmant. “By focusing on embedded insurance and deeply understanding the personas of our partners’ customers, we have the capacity to build the right products and experiences. Our embedded insurance solutions are designed to integrate seamlessly into various platforms, providing personalised coverage options at the point of need. This approach not only enhances customer engagement but also increases satisfaction by ensuring that customers receive relevant and appropriate insurance products.”
Fairness and transparency are key
AI and ML can be used to comb through large data sets, identify risk factors and predict possible losses, all of which enables increased accuracy and fairness of insurance premiums. “Our dynamic insurance products provide curated coverage that addresses the unique protection needs of that customer, with a premium that is priced accordingly,” said Naumann. “This ensures that the customer is only paying for the specific coverage they need, likely leading to a lower premium, with simpler and clearer policy terms that lead to improved claims rejection rates.”
Automation streamlines and simplifies processes. Colmant explained: “Insurtechs streamline the claims process through automated workflows and real-time data analysis, reducing administrative errors and improving claims efficiency. This approach not only speeds up claim settlements but also reduces the frustration and inconvenience often associated with traditional claims handling.”
Naumann agreed: “Our insurance solutions are parametric, meaning that the claim is automatically approved using AI or verified third-party data, leaving no room for subjectivity in the claims process.”
By leveraging analytics to design clear and transparent products, insurtechs can help minimise issues from the get-go, as Colmant said: “Advanced data analytics and AI-powered tools provide valuable insights into customer behaviour and claim trends. These insights are instrumental when designing insurance products, enabling insurtechs to design insurance policies with clear terms and conditions that minimise the likelihood of claims being rejected due to common issues.”
The role of incumbents
Well-established insurers play a crucial role alongside insurtechs in enhancing the customer experience. They bring a wealth of knowledge, experience and operational frameworks to the table, all of which are critical for fostering innovation and ensuring the ongoing success of the industry.
“Incumbents play a vital role in the insurtech ecosystem by providing expertise, stability, and resources,” Colmant confirmed. “By partnering with strongly rated insurance companies, insurtechs ensure the financial robustness of the insurance solutions they offer. This partnership allows us to innovate while ensuring compliance and reliability. Incumbents’ long-term risk management strategies complement insurtechs’ agile and customer-focused approach, creating a synergy that benefits both partners and customers. Together, we can deliver more comprehensive and effective insurance experiences that meet the evolving needs of the market.”
Wagner affirmed that this symbiotic relationship is crucial. “Incumbents play a crucial role in scaling up the adoption of new technologies. They bring regulatory knowledge, deep market understanding, and decades of experience to the table, as well as a substantial customer base. Access to these resources is vital for insurtechs. In return, insurtechs provide incumbents with innovative tools that improve their value proposition and their operational efficiency. It’s a symbiotic relationship that blends traditional strengths and cutting-edge innovation to meet customer expectations,” he said.
Overcoming pain points
Pain points with delivering a seamless customer experience are to be expected given the complexities of insurance and new technologies, but a proactive approach to product design can pre-emptively mitigate challenges. “A good user experience in insurance begins with a well-designed product that aligns with customer needs and expectations,” said Colmant. “By proactively addressing potential pain points and ensuring transparency in policy wording, insurtechs enhance customer trust and satisfaction.”
Wagner pointed out that one hurdle is the integration of new insurtech solutions with legacy solutions. “It’s a serious challenge, which slows technological adoption. However, this also presents a significant opportunity to improve by updating these systems and investing in more adaptable technology platforms.”
Colmant agreed: “While significant progress has been made, there are still pain points in delivering a seamless customer experience, particularly around regulatory compliance and integration with legacy systems. At Qover, we are addressing these challenges by developing a unified API that ensures compliance across different regions and simplifies integration with existing systems.”
By focusing on clarity, fairness, and efficiency, insurtechs have the potential to empower customers
As technology continues to transform the insurance industry, insurtechs and incumbents alike will continue to deliver personalised and innovative services and products that will enhance customer experiences and satisfaction. “There is an opportunity to further enhance personalisation and transparency in insurance products. By continuing to leverage AI and data analytics, we aim to refine our offerings, making them even more tailored and user-friendly, thus improving overall customer satisfaction,” stated Colmant. He articulated that there are three key focus areas of ongoing importance as the industry moves forward: “By focusing on clarity, fairness, and efficiency, insurtechs have the potential to empower customers with policies that are easier to understand and navigate, fostering greater trust and satisfaction in the insurance industry,” he concluded.