How the Nordic insurance market benefits from a reliance on powerful partnerships
Robert Kielerstajn, VP Nordics at Sapiens, shares how the Nordic insurance market benefits from a reliance on powerful partnerships that allow for exchange of ideas and best practice
In today’s digital world, consumers expect insurers to offer seamless experiences across online and offline channels. Quotes, policy comparisons, customer service assistance, and even claims filing should all be available at their fingertips.
As consumers’ digital expectations increase, many insurers are turning to partnerships to tap into the power of advanced technology and improve the customer journey for their policyholders. Strategic partnerships with technology providers, financial institutions, and consumer companies like automakers can make it easier for insurers to achieve the digital savvy, business capabilities, and market insights they need to thrive in a fast-evolving landscape.
Nordic insurers are well-positioned to benefit from these partnerships. The region’s insurance companies have already displayed impressive ingenuity in navigating the challenges and opportunities presented by rapid technological change. With nearly universal mobile phone ownership in the region, Nordic insurers have leveraged e-commerce, including m-commerce, as a key growth engine for well over a decade. That represents precisely the kind of future-forward approach insurers will need to embrace as digital transformation gains steam across industries.
Partnerships grow audience and market share
Forming partnerships with or investing in other companies and startups can help insurers reach new audiences, expand their product offerings, and enhance service at every stage of the customer journey.
Whether it be through advanced claims processing methods, new innovative product options to offer consumers, or advanced technology that will introduce new revenue streams, insurers should seek out partnership opportunities that provide tangible value to themselves and their policyholders. Simply partnering with a buzzy startup won’t do the trick, unless that company brings something substantive to the table – for example, unparalleled data analytics, powerful AI, or a robust customer base.
Across a variety of sectors, insurers have already forged partnerships and alliances to realise symbiotic benefits – including with banks, IoT technology providers, automakers and retailers. The 200-year-old Nordea, a leading financial services group and universal bank, offers a prime example of the fusion of banking and insurance – also known as bancassurance, a market that is projected to grow at a compound annual growth rate of 5.98 per cent between 2021 and 2026.
Meanwhile, auto insurers and automotive manufacturers have also seen significant benefits in partnerships – a trend that is likely to accelerate as new connected technologies and electrification reshape the market. The data generated by connected car sensors, for instance, can allow for lower premiums in exchange for safer driving behavior. And as electric vehicles come to account for a growing share of auto sales in the Nordic region, insurers could even offer lower rates or better services to customers to incentivise purchases of these more sustainable cars, in exchange for relevant benefits like access to telematics data. LB insurance in Denmark is one example, now offering electric car insurance with new tailored covers as well as an option to purchase a home charging solution through a partnership. In parallel, LB is piloting a mobile-only telematics program.
The range of partnership possibilities for insurers is vast – and given the Nordic region’s track record of leaning into the value of partnerships and technological innovation, it will be a critical proving ground for the industry as it moves further into the digital era.
Fortunately for the insurers of the Nordic countries, navigating change and harnessing innovative partnerships comes naturally
Why the Nordics excel at partnerships
The Nordic tendency to stay ahead of the curve will serve them well – and it’s already bringing real-world benefits.
Take the Stockholm-based insurtech company BIMA, which is partnering with mobile network providers in underserved regions of the world to provide consumers with microinsurance coverage. The company is also facilitating greater access to healthcare through partnerships with telemedicine providers – fusing future-forward insurance and digital health.
Within the Nordic region, consumers believe in fairness, transparency, and trust. When buying insurance, they aren’t simply purchasing a policy. They’re purchasing a process. In order to uphold the principles consumers hold dear, insurers must be certain that the partnerships they form are with reputable, well-established companies that share their values and outlook.
Toward a better future
Change has come to the insurance industry – and more is on the way. Fortunately for the insurers of the Nordic countries, navigating change and harnessing innovative partnerships comes naturally. With even more collaboration and ingenuity, there are better days ahead for insurers and policyholders alike.