Technology has long been touted as the answer to the insurance industry’s greatest challenges. But until recently, a lethal mix of code-heavy design, internal risk aversion and disappointing results from legacy technology has made the realization of responsive solutions elusive.
Insurtechs have now proven that this is no longer the case. Digital insurance platforms that provide low or no-code solutions allow stakeholders to design and adapt their systems to best suit their unique business needs. New products are scalable, unlike systems reliant on legacy technology.
As a result, more insurers and MGAS are onboarding digital insurance platforms at a record pace. But why is this happening now?
One of the main drivers of the insurtech phenomenon is the capacity to access better data. This has only become possible in the past 10 years, with exciting advances in IoT (Internet of Things) and AI (Artificial Intelligence).
In addition, customers have experienced a massive increase in the quality of service across industries over the past 10 years, enabled through technology. The pressure on insurance companies to provide tailored, flexible, and relevant services has made digital insurance platforms essential for safeguarding the long-term future and viability of their businesses.
The consequences of failure, such as losing the next generation of customers to more agile competitors, are simply too high for a risk averse industry to ignore.
Radical change can seem intimidating for legacy insurance providers and MGAs. But insurtech technologies have the power to turn current challenges into competitive advantages in ways that modern customers understand.
For mature companies, the opportunity could not be more exciting. The combination of customers hungry to endorse innovation with companies that can rapidly underwrite new policies, generate new product lines, and dynamically assess risk could empower the industry to achieve levels of growth that would otherwise remain impossible.
Larger insurance providers can more easily embrace insurtech by doing a combination of the following:
Startups use a variety of technologies to achieve competitive customer service, reduce costs, and improve efficiency. These include:
By acting as partners to established players, insurtechs help incumbent providers connect with digitally literate, expectant end customers. Insurtechs utilize their expertise to augment product offerings and provide greater feedback to businesses, bridging the gap between the modern customer and legacy brands.
Insurtechs have the power to turbo-charge the insurance industry. With greater flexibility, customer-centric design and improved data collection, insurers that embrace digital insurance platforms will thrive, setting themselves up for continued success.
INSTANDA combines all these features into an effective, easy-to-use cloud native insurance platform that flexibly meets the requirements of your business. With an international reputation and multiple implementation options, insurers and MGAs can set up their digital offerings with confidence.
If you are ready to join in the insurance revolution and transform the way you do business forever, then let us talk! With INSTANDA, you can build products that are uniquely yours and change the way consumers experience your products. Get in touch to get started with modernizing your insurance solution today!