Four keys to optimizing the insurance sector with insurtech

One of the sectors that has made the most progress thanks to digital transformation is insurer. Many of the companies that are part of the ecosystem have included insurtech watchers or startups in their digitization plans.

In the last year, society has faced situations that seemed unthinkable: global pandemics, historic snowfalls, volcanic eruptions. This has awakened in everyone a feeling of vulnerability to unforeseen events that has resulted in a greater relationship with the sector. In this context, insurers have demonstrated their strength and their ability to adapt to changes, investing in a commitment to digitization.

According to the Insurtech Global Outlook 2021, during the last four months of 2020, the volume of investment in Insurtech reached the highest levels of the last decade with more than six million dollars, of which the same insurers allocated almost 1,600 million dollars to startups that introduced digital models to the sector according to the NNT Data report.

All this points, according to Entelgy, The BusinessTechConsultancy, as an expert in digitization, that insurtech have and will have a critical role in the future of the sector because of these four reasons:

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Cost reduction and cheaper service

Digitization and the use of technologies allow companies to achieve a significant cost reduction. The insurance sector, for the most part, has opted to implement technological innovation that improves its relationship with the client, automation of customer service, resolution of doubts or online claims management are some of the novelties that insurers implement as their new services digital.

This significantly reduces customer service costs and allows insurers to offer their customers the same service at a lower cost. At the same time it improves in terms of efficiency and, despite limiting personal treatment, the user perceives a simplification of processes in their favor.

A more personalized service

One of the strengths of insurtech is its ability to collect data from users, as this allows them to get to know the user much more and identify their demands and needs. Insurers have ceased to be a passive actor that the consumer comes to hire and are beginning to anticipate consumer needs.

This is where you will find the true differentiation that digital insurers can offer. Faced with an industry fundamentally focused on the product, data analysis allows to change the focus to the user and thus respond to their real needs more quickly and efficiently.

Facilitates procedures for users

Faced with a situation that causes a certain level of uncertainty for the consumer, the client needs immediacy and simplicity, but the truth is that the procedures of traditional insurers could be a headache for the user. Identify where report the incident, the management times or basic data such as knowing what my policy covers and what is not are frequent doubts for citizens.

But digitization has made it easier to manage claims and other processes. For example, by means of a single application, most insurers offer to unify the procedures in the same place, which saves a lot of time for both the company and the user, and also happens with the appraisal, which is already possible to carry out remotely. with a mobile phone.

New lines of business

As a consequence of the insured’s in-depth knowledge, new markets are emerging where insurtech are finding their place. For example, in the world of motor insurance, the trend of pay per use is growing.

In other words, offering an insurance modality in which the price is calculated based on the kilometers traveled. Like this one, there are new products every time that adapt to the needs of all types of customers.

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