This piece is by Ernesto Suarez, CEO, Gigasure
Historically insurance companies have been slow to respond to emerging trends, particularly when it comes to technology. We live in a time where this can no longer be ignored and with the greater availability of data and insight, insurers can evolve their products and the way they are delivered to meet the ever-changing demands of their audience.
With the evolution of technology on the rise, it’s no surprise that Generation-Z, in particular, are using the internet more than ever. Recent research shows that on average, Gen-Zers spend around 10 hours a day online with an annual global online spend of nearly £268 billion. The online activity has changed their purchasing behaviour and a big part of this means that this is a generation that wants fast, informative and tech driven product offerings. Here lies an important opportunity for insurance companies.
Personalisation is key
One of the main key elements that consumers want is a faster and more personalised service. For insurance brands to meet the evolving consumer expectations and stay relevant there is a need to invest in the right platforms that will deliver and give customers what they want. For example, with simple to use websites and intuitive apps that are personalised and quick to access. This provides an opportunity to satisfy the need for a clear and concise view of products, accurate data analytics that give the customer what they want, and innovative extras that allow brands to move faster.
Customisation delivers on speed
Insurance has gone from a product you buy and forget about until you need to claim, to a much more personalised and interactive service that travels with the customer as a companion in their pocket as they travel around the world. With the right platform, customers are now able to pick and choose policies digitally, rapidly speeding up the purchase process.
Consumers want to feel in control with customisation that enables them to build a policy that matches their unique requirements. Technology evolution allows us to deliver this in a way that empowers customers, providing the ability to tailor an insurance policy that aligns with specific needs and budgets. This is not just about cost saving for the customer, but it allows flexibility while building trust and brand loyalty.
Increased use of Gen AI
We’re also seeing an increase in the use of generative AI used across the industry to help enhance the customer experience. Recent data from McKinsey and Insurtech UK shows that more than 70 percent of UK insurtechs are already running or moving beyond pilot AI projects. AI allows insurance brands to offer more personalisation, develop more accurate risk modelling, detect fraud and automate the claims process. The benefits of AI use here can help increase efficiency and productivity, reduce costs and streamline the customer experience from start to finish.
Speeding up the claims process
Digital platforms speed up the claims process significantly and also provide a more simplified process when it comes to managing large amounts of data, it also reduces paperwork. Offering a digital-first approach improves the overall customer journey. Technology allows us to simplify access to policy details, claim submissions, and customer support. Push notifications and reminders keep policyholders informed about important updates, such as renewal alerts and important advice. At Gigasure, our app uses the information we have on a customer’s account to prepopulate some of the claim’s forms therefore making the process smoother by reducing administrative steps so customers can focus on what’s important.
We have embraced the benefits of using parametrics, through digital platforms, which allow for our travel insurance policies to offer additional benefits. We can also use it to speed up the claims process. If a specific event occurs such as a flight delay of cancellation, the policy pay out is trigger-based and automatic. This less traditional type of insurance is particularly useful for travellers who may be affected by unforeseen events like natural disasters, as its instant.
Looking ahead
As the industry continues to evolve, Insurtech enablers are taking centre stage, reshaping how insurance is built, delivered, and experienced. The UK remains one of the fastest growing insurtech markets in the world having grown by seven percent since 2022. Product innovation is leading the industry and there is real opportunity to leverage partnerships to help drive capacity and data access which in turn helps support business growth.
Generative AI is now recognised as one of the biggest opportunities for transformation and Insurtechs that are able to embed it fully into their business models will be able to bring fresh solutions to the market to gain a powerful competitive edge, quickly. With the right technology platforms and partners, insurance brands can move faster, scale smarter and shape a more connected, customer-centric offer.
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