Technology users could mean an upgrade in the insurance industry in the near future.
Nowadays, more and more people are relying heavily in the use of computers, tablets, and smartphones. They use these things for work, research, communication, and even for shopping. Millennials for one expect to be able to shop for products and services and have these delivered in their inbox or front door in an instant. With these changes, different retail providers, including insurance providers, may be forced to use technology to a greater extent if they wanted to remain competitive in their respective markets.
And insurance providers may have more to gain from these too. Industry experts are now claiming that when this is partnered with micro insurance products, insurance providers may be able to reach a wider audience that will now include the low-income individuals.
Is this a viable idea? According to a 2016 US insurance auto shopping study, 75% use insurer websites when trying to get quotes or researching for additional information on a product. This type of behavior is not only exclusive to auto insurance products. This is also true for other products or services where people are now using the power of the Internet to research about the product of service that they want to avail.
The buying behavior of people has already changed since the introduction of the Internet. Insurance providers should seize this opportunity to improve their services and consider increasing their revenue by allowing people access to their products or services with the use of an online portal where people could easily compare or purchase online products like those of chartered accountant liabilility insurance, life insurance, or auto insurance.
Today, these tools are simply dubbed as InsurTech (Insurance Technology) products. There are now companies that are specifically creating these. These are now claiming that they could provide better stability for underwriters in the world of insurance that is often threatened by disruptive changes.
According to the Insurance Regulatory Authority in Kenya, InsurTech providers are now providing ways for insurance companies to promote and sell their products and services through the tools that they provide. With the new technological tools, insurance companies are also hoping to be able to come up with new products to meet the changing needs of their potential clients.