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.
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, 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, an on-demand policy will allow you to activate insurance cover for the duration of that trip.
From a drone to your own health
What can be insured on-demand? From items such as bicycles, cell phones, computers, cameras and drones, to travel and personal accidents.
Where will this new way of tailoring insurance to customer preferences end? The possibilities are endless.
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 users that expect 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.