Although the philosophy of the world of insurance, to offer peace of mind, has barely changed for more than a hundred years, the way of providing it is experiencing a real revolution. And technology has a lot to do with it.
New customers, new demands
A new generation of customers, fully integrated in the digital age, is demanding new insurance products and new ways of contracting them. In short, they see technology as a tool and not as an end: they are calling for a digital transformation that improves the customer experience, their convenience, and the benefits they get. This revolution affects the insurance business, its products, its distribution channels and the tangible assets that insurance companies insure.
We’re talking about something that goes beyond simply taking out insurance through a mobile device. Technology, for example, and more specifically the use of the smartphone, is already influencing the way we report a household or vehicle accident: location, photos, sharing contacts with other people affected, or even doing a remote claim survey – i.e. transferring videos and photos of the accident to the expert, so they can verify and assess the damage remotely from their computer. On many insurance company platforms it is already common practice to request healthcare or vehicle assistance through an app.
The possibilities of geolocation
Connectivity is also revolutionizing these services. For example, with a geolocation device in your vehicle, connected to your smartphone, you can get information in the case of the theft or loss of your car, motorcycle or bicycle. Even in the event of an accident, the system could detect a sudden deceleration or inclination that could lead it to report an accident if the user does not indicate otherwise.
Sharing our digital trail with the insurance company can work in our favor: through our data we can evaluate the way we use the car every day, the routes we choose, our schedules, the way we drive, etc. The Big Data technology in this sector is key, since it is capable of detecting patterns: an insurance company could offer you personalized coverage, evaluate your behavior and risk level, or even open a window to the possibility of pay-per-use, such as a policy whose cost is based on the actual time you drive.
The Insurtech phenomenon
As you can see, technology offers a world of possibilities to this sector to even further personalize its offering and make its services much more practical and convenient. In fact, the Insurtech phenomenon – in other words, the technology startups that are defining innovation in the insurance sector – has even penetrated the heart of the big firms in the sector. Many of them have opened a door to collaboration with these small initiatives to take advantage of their creativity and innovation when transforming traditional services.