ON-OFF Insurance: cover at the touch of a button

ON-OFF Insurance: cover at the touch of a button

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14.Jul.2022

Have you heard of on-off insurance? This is a new type of insurance product offered by insurance companies. Its main feature is that the customer can program their insurance, in other words they can "switch it on" or "switch it off" so that it is activated only on the days when they need cover.
 
The philosophy behind this type of insurance is “pay-as-you-go”, also known as the “on-demand” philosophy.

On-demand

For example, if you only use your computer when you are at home, you probably don’t need to insure it; but if you take it on a trip, an on-demand insurance policy would give you the opportunity to activate that just for a specific period.

Another example: usually you get around your city on an electric scooter, and you like to have peace of mind in case you suffer a mishap. An on-off personal accident insurance allows you to activate it when you travel, and deactivate it when you don’t; and that way, if something happened to you, you would have health care coverage for any injuries you might suffer.

The client decides

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. That is why this type of insurance is not only innovative as a product, but also a revolution in the relationship that customers have with their insurance companies. With on-off, the customer becomes the focus of the relationship and controls the product, deciding how, when, where and what product they want to insure.

Intuitive and easy to use

Normally the insurance is purchased and used from a mobile app, in a simple, transparent and very intuitive way. In fact, to avoid absent-mindedness and to prevent you from forgetting to activate or deactivate your insurance, they can be programmed very easily. From the apps to which they are linked, you can select the days, indicate whether the dates are recurring, and modify them as often as you need to.

Instant

What can be insured on-demand? Some insurance companies offer “on demand” insurance for mobile phones, computers, cameras and drones, and even travel, accident insurance, goods transport insurance and health cover.

In the case of items that are subject to mandatory insurance, such as cars and motorbikes, on-demand can offer additional cover, such as higher limits, extended cover for roadside assistance, passengers, pets, and so on.

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 consumers that expects to activate and deactivate solutions at the click of a button thanks to the many technological applications that they handle in their day-to-day lives.

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