I’m often asked how insurance is set to change over the coming years. With industries from healthcare to retail – and even the ‘traditional’ banking sector – embracing digital transformation, we at Wrisk know that the time is ripe to reinvent insurance for today’s digital consumer. Here are some of the ways I think the insurance industry will progress in the next 10 years, and the demands these will place on insurers and their partners.
- Over the next decade, we will see an increasing need for insurance that is fit for the digital age. Insurance need to become more flexible and mobile-first: already, 77% of 25-34-year-olds would like to carry out all general insurance transactions on their smartphones, according to research from Deloitte, and this demand will only grow.
- In other industries, consumers are already used to being put first. Insurers and companies offering insurance will need to totally shift their focus towards the consumer in order to keep up with expectations. Rather than seeing insurance as a one-off yearly purchase, they’ll need to build ongoing relationships with customers via digital channels. This will mean shorter policy cycles and subscription-based insurance, as well as being transparent with customers about how their lifestyle affect their policy pricing. For customers of Wrisk’s partners, the Wrisk Score does just that.
- Customers will increasingly search out personalised insurance that suits their individual needs – insurance that covers the things they actually care about and that is priced fairly and transparently.
- With the proliferation of all kinds of sensors in consumers’ day-to-day lives, insurers will use the increasing data available to offer truly customisable and flexible insurance products, based on a people’s individual lifestyles.
New products and services
- With increasing digitalisation of the sector, point-of-sale insurance will become far more common, with insurance shifting to a seamless, one-click, add-on to the purchase of all kinds of high-value items, including cars, watches or bikes.
- In the mobility sector, ownership models are shifting towards ‘mobility-as-a-service’ and autonomous driving technology is developing fast. As a result, insurance will need to be extremely flexible and targeted in the future, in order to cover drivers appropriately across all kinds of set ups and situations.
- We’ll also see a rise in data-driven insurance models, such as pay-as-you-go and telematics.
What role will insurtechs have?
- Insurers themselves have been slow to innovate thanks to the weight of the transformation task. In order to move the sector forward, we will see increasing demand from traditional insurers for insurtech partners that can help them to bring a digital-first experience to customers, without having to overhaul their whole business model.
The future of insurance will be shaped by consumers increasingly refusing cookie-cutter interactions with brands. Insurance companies will have to evolve digitally, shift their focus towards flexibility and put the consumer first…and Wrisk will be there to help.
Article was first published in Fintech Magazine