"According to The Boston Consulting Group, the three critical dimensions of customer satisfaction in insurance are transparency, quality, and speed.
I’d add a fourth dimension; simplicity. But not price. Making it easier in the digital economy doesn’t automatically mean you have to make it cheaper."
Rick Huckstep- The Digital Insurer March 2018
Does insurtech add simplicity to transparency, quality and speed.? In some ways yes- as has been proven by Lemonade, TROV, Slice, Cuvva, RIGHTINDEM to name a few.
But often in just one product, one country/state and regulatory regime or a maximum of two or three which does not fit with global insurers.
For incumbent insurers to adopt multiple technologies for multiple products simplicity, transparency, quality and speed go out of the roof and its back to complexity. How will customers react of they were to get the best of digital service on the standalone "home-share" insurance claims using SLICE and then the worst of all using the existing analogue claims process for escape of water? From hero to zero!
The same is true for services- once a claim is accepted and the insurer needs to orchestrate the repair and replacement of damaged items the supply chain must be equally digitised. You don't get an order accepted quickly by Amazon and then suffer glacial speed inventory management and delivery.
As Rick Huckstep says " The big shift in claims is to put the process in the hands of the customer enabled by platforms such as 360Globalnet" . Platforms that digitise claims processing AND integrate and orchestrate the total supply chain.
Then you get that Amazon experience across all perils, all products and all geographies- something that most Insurtechs will struggle with.
Read the linked article below if planning self-service digital claims
The distinction between brokers, carriers, reinsurers, managing general agents and the like is of little interest to consumers. From a customer’s perspective, insurance falls into three parts: Buying it Owning it Using it For the digital insurers who make their customer experience simple, they remove friction from the three-part 21st century insurance value chain. Such as making it significantly easier and/or quicker to buy insurance. They use tech to mitigate, even avoid preventable losses for their customers. Or, they offer added value through engagement and complementary services. And they make the claims process quicker and easier. The big shift in claims is to put the process in the hands of the customer enabled by platforms such as 360Globalnet.