Evolving InsurTech Landscape in 2022

Over the last few years between a scary health pandemic, ongoing wars, and rising oil prices, the world has become a smaller place to live in. We’ve all strived to adapt our lives to the digital world. As a result, organisations had to evolve and adapt to fit in this new way of working. Customer-centric insurtechs have phased out the conventional practices in favour of new and innovative ways to stay ahead of the market in anticipation of future customer needs. What’s more intriguing is that these new-age digital thinkers have not only put on a remarkable show in these uncertain times, but they’ve also piqued the interest of investors and venture capitalists worldwide, hitting $14.6 billion investment in 2021 which is nearly double the amount received in 2019. Here are the upcoming CX Trends in Evolving InsurTech Landscape for 2022.

Decoding the ‘Want-it-Now’ culture

Winning the new-age customer is all about speed and efficiency. The real challenge is intelligently creating an exceptional digital experience.

There is an emerging class of customers in this post-pandemic world who expect relevance, consistency, instantaneous service, and a highly engaging customer experience. According to the data revealed by Max Life’s India Protection Quotient survey, the Protection Quotient in Urban India has hit 50, indicating that urban Indians have a strong sense of financial security and a pressing need for insurance penetration. However, the opportunity comes along with its own challenge for insurance providers: making the buying experience speedy and seamless for the want-it-now customers who want everything delivered to them at a press of a button. Insurtechs are now bridging the experience gap by offering personalised products to customers at the velocity they expect.

Let’s look at what’s trending in the evolving Insurtech landscape in 2022.

• Rapid Application Development Platform

For insurers, building a new product has become a lengthy process. Once the data collection and research are done, the bulk of the time goes into configuring the product and building the user interfaces in the IT systems. Insurers need a tool that can execute this task swiftly and efficiently. A rapid app development platform would allow insurers to launch new insurance products within weeks and not several months it takes them now. The right platform will also take care of UX principles, responsive design, API integration, modern architecture, and security concerns addressing both web and mobile vulnerabilities.

• Real-Time Data Analytics

Being able to derive and act upon insights in real-time as opposed to post-facto analytics is very critical for fast-moving businesses. Better decisions need to be faster decisions. Enabling faster decisions and nudging it to help the user transact depends on how well the organisation is able to act upon data already available in different silos within the organisation and marry it with real-time data coming in from various sources.

• Integration of Insurtechs with Open Digital Health Ecosystem

Healthcare in India is shifting towards a value-driven model of care delivery from its historically siloed & episodic intervention approach. This is where the National Digital Health Mission (NDHM) comes into picture.  It is an organization in charge of reducing the localisation in healthcare and providing unified access and transparency to all parties involved in the health ecosystem. With access to the national health ecosystem, insurance providers can seek relevant information about the validity of a health claim more quickly. For insurtechs, NDHM helps them in integrating with the ecosystem and at the same time, expand their catchment area in terms of customer base.

• Catering to customers with Hyper-personalisation

It is a must for insurers to know the demographics of their customer and have 360-degree customer profiling done before creating the product. Insurers need a personalised approach to not just sell the policy but to create the relevant product based on the specific needs of the customer.

Insurtechs have been proactively tracking down the needs of the new age customers by digging deeper into their lifestyles and figuring out their unconscious needs. For example, OneAssist offers insurance coverage for appliances and data protection by addressing the growing problem of identity theft, the dark web, and cyber-risks in the internet era. Another example is pet insurance which is in its nascent stage but is still untapped with huge market potential. Insurtechs like Pawtech and PolicyBazaar are offering pet insurance solutions to customers.

The Way Forward

The truth is out in the open: insurtech firms are giving the much-needed booster dose to the insurance industry which will help in delivering innovative, personalised products faster. Going forward, the weightage will be more on creating a superior digital experience and customer service that covers every aspect of the customer journey-from the pre-sales process to policy buying and servicing claims.