The COVID-19 pandemic has triggered structural changes that have forced insurance players to become more competitive than ever. The pandemic has proved to be a catalyst, nudging insurers to prioritize their focus on improving customer centricity, market agility, and business resilience.
As per a report by Accenture, almost 86% of insurers believe that they must innovate at an increasingly rapid pace to retain a competitive edge.
‘Insurtech’, short for ‘insurance technology’, is a term being widely used these days to talk about the new technologies bringing innovation in the insurance industry. The digital disruption caused by technology is transforming the way we protect ourselves financially.
In this article, let’s explore the top insurtech trends for 2021 that will pave the way for the future of insurance.
- Data-backed personalization
Insurance companies are increasingly drifting towards collecting data to understand customer preferences better. Using data collected from IoT devices and smartphones, insurance companies are trying to deliver customized advice, the right products, and tailored pricing.
Personalization enables exceptional experiences for customers while offering them products and services tailored to their specific needs. The idea is thus to put customers at the core of their operations.
Some examples of data-backed personalization include the following –
- Reaching out to customers at the right time. This involves pitching to customers when they are thinking of buying insurance like while making high-value purchases, during financial planning, or during important life events.
- Reaching out to customers through the right channel. This involves reaching out to customers through appropriate platforms like a website or mobile app.