Investment into the insurtech sector in 2017 has reached $1.8 billion, but research released today, exposes the disconnect between investment and its effect in changing the insurer and customer relationship.
• Insurance customers are yet to see the benefits of multi-billion insurtech investment with over 70% claiming their insurer is no easier to deal with than 2 years ago
• Large corporate insurers are still embarking on digital transformation with few product launches and start ups lack the customers and data to launch at scale
• 20% of brokers blame technology for difficulties dealing with insurers
• 61% of customers believe insurers make ‘claiming’ deliberately confusing
• Whilst insurers rank ‘technology’ as the top investment priority (96%), a third believe insurance is 5 years behind the digital curve
Customers are demanding increased transparency and simplicity in all aspects of their life – energy meters, bank accounts, taxes, telephone bills – and insurance is seen as no different. But just one in ten consumers fully understood their policy cover claiming “jargon” and “long & complicated” terms and conditions as one of the reasons why.
Matt Connolly, CEO at Tällt Ventures, a data driven insight and intelligence business, explains “Our most recent research indicates that not all insurers are positioned to answer the demands of their customers, as they are hindered by age old legacy systems. It is clear that there is a disconnect between the initial promise of the insurtech revolution and the current reality experienced by millions of customers, who feel sold short.”
He continues: “Start-ups may have the ideas and the technology, but are taking time to build an audience and introduce new products. Similarly, most incumbent insurers are grappling with long-run transformation programmes that won’t deliver for years. However, some businesses are well positioned to deliver immediately and one company that stands out in the UK is medical insurer, WPA”.
WPA Showcases Precision Corporate Healthcare
Today, using machine learning and nascent AI through their award winning DELOS autonomous operating system, WPA introduces Precision Corporate Healthcare, providing new levels of transparency, simplicity and flexibility to customers.
The Precision technology has three key elements:
• Precision Corporate Healthcare – a simple, flexible and innovative product for SME’s with 50+ employees which allows companies to design their health cover to precisely meet their needs. A bespoke digital interface allows HR Directors, CFOs and Employee Benefits Consultants, for example, to alter their individual benefits and design a plan that precisely matches their needs.
• Precision Analytics – a new approach to data: the online tool has been designed to remove the mystery behind health insurance premiums and provide transparency and clarity. Precision Analytics gives companies insights into exactly what their employees (anonymised) are claiming for, what is driving premium increases and, ultimately, model their policy to best fit their needs.
• Precision Claim – allowing employees to, within a few minutes, get a claim pre-authorisation – via an intelligent, intuitive and simple mobile app – to visit a specialist, starting their treatment journey as quickly as possible.
Mark Southern, Commercial Director at WPA says “Insurers who don’t evolve their technology and listen to the demands of their customers will not be with us in 5 years time.
The Tällt research indicates an underwhelming response to insurtech. WPA, on the other hand, are leveraging technology to give the transparency, flexibility and simplicity that our customers crave.”