On-demand: insurance that can be activated and deactivated

On-demand: insurance that can be activated and deactivated

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03.Aug.2020

This so-called on-demand insurance is a great alternative for when you don't need coverage 365 days a year.

Imagine that you would love to go mountain biking and would like to insure your bike against any mishaps that may occur when riding your favorite forest trails. However, you realize that you will only be able to go biking once a month. Is it worth paying for insurance that covers you 365 days a year when you’re only going to use it for twelve of those days? This on-demand insurance offers a great alternative for this type of situation.

Anytime, anywhere

This type of insurance is characterized by its flexibility, by the possibility of taking it out whenever and wherever you like, by the great variety of services and assets that can be insured, and, above all, because the insured party can activate or deactivate the policy whenever they deem it appropriate. For this reason, these policies are also known as “on/off” insurance.

The “pay per use” philosophy

Basically, this is a “pay per use” philosophy. For example, your car. If you regularly use your vehicle during weekends and the rest of the time you have it parked in the garage, on-demand insurance gives you the chance of only activating it when you make use of your vehicle. Another example: If you have a tablet that you don’t use outside the home, you probably won’t need to insure it, but if you take it on a trip, you could activate the insurance for the duration of that trip.

From a drone to your own health

What can be insured on-demand? This ranges from assets such as cars, motorcycles and bicycles, through to cellphones, computers, cameras and drones, to travel, accident insurance, freight transport insurance and even health insurance.

The key to these insurance policies is their immediacy, since they aim to respond to the new needs of millennial and centennial consumers: an audience of here-and-now consumption that expects to activate and deactivate solutions with a click thanks to the many technological applications that they handle in their day-to-day lives.

The customer takes control

Experts attest that this type of insurance, in addition to reducing the cost of policies, will represent a before and after in the insurance world: the customer takes control of their policies by deciding how, when, where and what product they want to insure, usually from the mobile apps on their smartphone, in a simple, transparent and very intuitive way.

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