A report made by Startupbootcamp in collaboration with PwC focuses on the fact that the emerging sector of insurance tech, is an opportunity to rebuild the relationship between insurance companies and their clients. An opportunity seized mainly by insurtech startup.
The report has been realized also conducting a survey among 1,300 international startup, a third of which focused (or leveraging for their business) on customer experience.
The change imposed today to the insurance sector has been determined by the arrival of a range of technologies that have altered lifestyles, needs and means of use of services and particularly Millennials require a new relationship with insurance, that in fact, does not have a very positive reputation.
Several emerging insurance tech startups such as Lemonade, Clover Health, Embroker, He found, League, FriendSurance, Inspeer or Italian Neosurance and Darwinsurance, are essentially a revolution in customer experience between insurance and customer.
However, among the issues raised in the report, the most significant ones are the fact that startups do not consider themselves as insurance disruptors, but rather as an opportunity for insurance companies, and look for cooperation.
Another evidence emerged is that the majority of insurance tech startups is focused on the relationship between customer and insurance: 35% of applications received by Startupbootcamp Insurtech, are from of startups willing to improve the quality and frequency of this relationship through digital tools. This is of course a sensitive point for insurance carriers, given that the traditional relationship with customers was based on insurance agents.
Another part of insurtech startup is rather focused on the issue of back office, then developing solutions that are directed to the insurance carrier and can support data management (here we talked about Amodo) or improve process management.
Remarkable is the importance given in the report, to the issue of the desired cooperation by both startups and carriers. Collaboration that be carried out in a number of ways, from partnership, to the support to startups, and in some cases the acquisition.
Jonathan Howe, director of the insurance industry PwC said to InsuranceAge: “If insurtech startups and companies can successfully work together to build new and significant insurance products, cutting operating costs and moving some of the savings to the customer, it is not only an opportunity to increase profitability, but also a chance for insurers to build and maintain trustful relationships with customers.”
Sabine Vanderlinden, CEO of Startupbootcamp InsurTech, added: “We are glad that the insurtech companies are playing a crucial role in redefining how insurance companies will relate with their customers. The insurance industry is slowly becoming aware of the inevitability of change and startups are trying to facilitate, rather than hinder, the change. The key will be work together.”
Certainly, the most important insurance carriers in the world, are now quite aware of the opportunities for change acceleration, that working with startups can offer them, in fact many of the initiatives of international incubators and accelerators, dedicated to insurance tech are just made by companies.
Download the report “Insurtech, a force for good”.
