In a surging world of insurance claims and new policies to cover every element of our lives, it can sometimes feel like a perpetually draining task finding the right choice. Insurance deals have existed for numerous decades, with cavemen insuring their household goods of spears and firewood (we jest, of course). Being such a fiat cost in society, the systems’ lack of development has caused the industry to lag with progression. And it’s no secret that people don’t long for the lengthy processes of insurance form calls, policies, paying and closing claims, renewals, and much more. Thus enters ‘insurtech’ – an age of fintech supporting insurance companies to tighten their laces and enhance their services to existing and new customers. Prior to the digital age, the industry benefited from a lengthy period of relative stability, where growth has resulted from a constant competitive poaching of others’ market share.
Whilst this boils the 3.66 trillion euro industry down to layman’s terms, the takeaway is the lack of engagement with customers that occurs and monumental costs resulting from inefficiency and limited movement from a financial perspective.
Why is insurance the new venture?
The challenges which insurance companies face continue to prevail without any significant improvement – an opportunistic space for fintechs who thrive in solution-providing. Growing populations who are more digitally savvy create a need for new business models which entice the uninsured and retain those with existing policies. Challenges from a consumer perspective often circulate around costing structures and complex product packaging. Whilst the issues have been longstanding, the surge in change has arisen because of advancing technology. As we say in many of our blog posts, fintech’s existence circulates resolving gaps and issues in our world of purchasing – both for consumers and merchants. Numerous insurtechs have begun to rear their heads in recent years; using customer-focused approaches which they’ve adopted from other reformed industries to transform insurance as we know it.
The insurance industry has collided with technology to shift from a product-centred approach to a more customer-centric model. Historically, rather than insurance companies throwing everything but the kitchen sink into attracting policyholders, it is the customer who must mull through hurdles of data gathering and giving before they have a clear image of the product best suited for them.
Rising numbers of solutions and innovations has shaken insurance companies who believe that people will always need them irrelevant of change, because of the growing competitors which will not only have an improved offer but a tailored customer experience. Insurtech is being revolutionised by a fresh use of data – not only to fill all fields on a form and contract, but to purposefully engage with existing and potential customers. Streamlining communications through to a sophisticated touchpoint is the future of success. Banking as a service (BaaS) solutions, driven by fintech companies, offer financial services and products which feed into customer activity, to non-financial platforms. Insurance companies’ implementation of technology, such as BaaS, opens up a multifaceted platform which functions on low-cost, data initiative, scalable technology and increase customer service whilst saving cost. Not only does the implementation of technology into more dated industries support a deeper relationship with customers but capitalise on cross-selling opportunities through multiple touchpoints. A key driver in the acceptance of insurtech comes from the control given to insurance companies. Stacked technology in a simple integration renders a lot of administrative tasks redundant, as smarter technology automates these steps.
New models of technology are infiltrating the fiat world of insurance, bringing in a modern technology stack with a comprehensive data layer, interactive and intuitive consumer interface and a product suite that uses intelligence to interlink to create a unique customer experience. With a focus UX/UI data, in addition to an improved payment process – insurance will soar.
Implementation of innovations from insurtechs allow for:
- Seamless engagement with customers using data and AI
- Bespoke experience for customers who wish to toggle cover on or off depending on their situation
- Speedy payments through a unique interface belonging to the insurance company. Acting as a communication and loyalty application, policyholders are able to engage quickly to resolve queries and make claims. Whilst insurers can make rapid pay-outs and notify policyholders of prosumer offers
- BaaS dulls pain points where claims, policy management and more become unwieldy for both policyholders and the insurance companies
- Pay out claims instantly with virtual and prepaid cards. Not only reducing business cost and transactional fees, but also the manpower needed to complete paying out insurance claims.
- Younger generations who are born into technological advanced generations will become the main buyers of insurance. Options to purchase through a mobile first experience will provide insurance providers opportunities to communicate faster, as well as send push notifications for alternative insurances driven by data
- Multiple selling opportunities with smarter use of data to promote cross-selling of newer and additional policies
- Cost effective solution to reduce the necessity of time-costly processes to pass payments. Policyholders can be paid via e-wallets in real time, without insurance companies needing to trail through banks to collect funds.
Predictions show us that while innovations disruptive forces create change, we can pre-empt the growing shift in the industry from risk assessment to risk prevention. It’s undeniable that smarter technology creates smarter consumers, who will continue to seek for highly personalised products that are truly comprehensive. Since the emergence of early fintech solutions, consumer expectations for a smooth, cost-efficient experience have become a blanket expectation in all areas of society. It’s this demand and adaptation that is reinventing the insurance value chain as we know it. And for the insurers who embrace the disruption, they will find long-term growth and retention of customers.
Our solution is all API driven, so they have access to our backend, but they must build their own frontend. They then use our API to offer customers cards and QR codes, etc. Partnering with insurtechs and fintechs, the industry will draw in more of the insurance market as a result of their focus on customer experience. A simplified claims process, with a fast-onboarding process and customisable product offerings will be irresistible. Insurtech solutions, such as banking as a service (BaaS) encompass an end-to-end proposition to customers that best suit their lifestyle.
What is Unlimit’s BaaS solution and why is it different from other similar solutions out there?
Among Unlimit’s plethora of bespoke services, its BaaS API solution is deigned to enable companies to deliver innovative account and payment solutions; both conveniently and seamlessly. For merchants who seek to launch their own branded cards, open accounts for customers, or are seeking a new payment solution – Unlimit removes complex risk and cost with their financial services.
Our solution is all API driven, so they have access to our backend, but they must build their own frontend. They then use our API to offer customers cards and QR codes, etc. Partnering with insurtechs and fintechs, the industry will draw in more of the insurance market as a result of their focus on customer experience. A simplified claims process, with a fast-onboarding process and customisable product offerings will be irresistible. Insurtech solutions, such as banking as a service (BaaS) encompass an end-to-end proposition to customers that best suit their lifestyle.
Setting up businesses’ financial capabilities, whilst allowing them to focus on their core business is a key focus for Unlimit. The solutions stay ahead of other providers because of the personable relationships made to truly understand the problems clients face. The implementation of Unlimit solutions, such as BaaS, has empowered organisations to overcome geographical limitations, lack of flexibility and configuration gaps. In the world of growing demand and refreshing insurtech options, consumer needs can be satiated with global capabilities in real time, without incurring additional costs. Unlimit believes that the client should be front and center, with the BaaS provider as the background supportive beam.
