Five insurtech solutions to deal with inflation

The inflation It is present in all walks of life today, but especially in the world of insurance. In this sense, companies are being forced to increase the price of their premiums.

Faced with this situation, in order to moderate these effects, one of the great solutions that this sector has seen is collaboration with insurtechs. For years, many brokers have already collaborated with this type of company to help them speed up processes, increase benefits and reduce costs, something that today could, in part, be the lever to mitigate the effects of inflation by benefiting premiums. of insurance for consumers.

Currently, according to the latest INE data, the underlying inflation rate is at 7.7%becoming the highest since November 1992. Given this situation, insurance companies see their profits and profit margins reduced due to the decrease in the contracting of policies due to the increase in prices, which has led to a lower business acquisition.

Likewise, inflation can cause an increase in the accident rate in insurance policies, since the costs of repairing and replacing the insured goods can increase and, therefore, the premiums too.

To try to alleviate this situation as much as possible, both insurers and brokerages are increasingly betting on alliances with insurtechs, thanks to the digital and technological solutions that offer.

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These digital tools allow insurance companies and brokerages to increase their profits and reduce their costs by customizing their products and services, optimizing their internal processes, and improving their analytical and decision-making capabilities, as well as their efficiency and transparency in the market. . With this in mind, this collaborative trend is likely to continue as the insurance industry continues to evolve and companies continue to look for new ways to compete in an increasingly digital world.

In the words of Sergi Baños, Wefox Chief Technology Officer: “The brokerages have seen in us an opportunity to improve their competitiveness and offer their clients more innovative and personalized solutions, especially now in these times of inflation. To do this, through our services, we help manage aspects of the brokerage business more efficiently to reduce costs and increase sales. We take care of the management of clients and policies, the preparation of invoices and quotes and, even, the presentation of claims and administrative procedures, among others. Thus, we can provide them with a comprehensive and easy-to-use solution”.

Under this premise, Wefox experts emphasize some of the digital and technological solutions that can help brokers and insurers:

The importance of leads for the price of premiums

To reduce operating costs and try to lower insurance premiums for consumers, insurtechs are using technology to automate processes and improve the efficiency of operations. For example, insurtechs such as Wefox are specialists in the use of leads to detect through different means, such as social networks or Google, what are the movements of people potentially interested in contracting insurance products.

Thoroughly understanding customers means survival

In order to survive in this highly competitive market, it is necessary to know the client perfectly in order to adapt services and products as much as possible to your needs. To do this, insurtechs through Big Data Analytics analyze valuable information to make it easier for brokerages to identify the characteristics, consumption habits, and behavior of their customers.

Fight inflation with new digital solutions

The innovative and disruptive solutions offered by these types of companies can help face the challenges of inflation. For example, they can offer insurance that uses blockchain technology to reduce administrative costs, or use artificial intelligence to improve efficiency in the claims process.

The greater the transparency, the greater the possibility of sale

Insurtechs can provide greater transparency on insurance prices and products, which can help consumers to make more informed decisions. Through the various solutions that exist, customers can see in a personalized way which insurance is best suited to them according to their lifestyle and see in detail everything that these services include.

A good alliance to become invincible

Alliances between insurtechs, brokers and insurers are a win-win for all. Facing the customer, the image given by these three actors working together is one of reliability (many years of experience), quality (the best solutions to sell), innovation and safety (the most powerful technology) and respect for the planet (more sustainable thanks to to your digital processes).

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