Elad Schaffer is cofounder & CEO of travel insurance startup Faye.
Insurance is dominated by incumbent players who many of us associate with archaic, bureaucratic processes. That may be true, but let’s be honest—they’re still raking in the dough. They do, in fact, cater to those who don’t (yet) know any better.
That said, emerging leaders have been making waves in the insurtech space—from travel and home to pets. And the ones that focus on building new-age products from scratch will win in the long run, pushing aside legacy providers who have shown an inability to modernize quickly.
Here are three characteristics that will define the future of insurance.
1. Accessible Anytime, Anywhere, From Tech To Humans
It may seem obvious to say that today’s insurance products be mobile-first with modern, user-friendly apps that make your product easily accessible, but it’s easier said than done. Your app should boast value adds that elevate consumers’ interaction with insurance, taking it from a forgettable add-on to a must-have advantage. Individuals won’t just download your app to view their policy—let’s be honest, that’s lame.
For our company, that means our app is a space for real-time flight alerts (like delays), digital claims submissions and reimbursements and crucial destination information.
But you can’t stop by just having an app. If you’re building a modern product for the modern consumer, then real-time support (I’m talking about real, human, proactive assistance) is key. Why? Because insurance covers significant, sensitive areas of consumers’ life—from house and death to travel and pets. And when things go awry, it can be stressful and costly for them. Ensuring your support team is reachable in-app 24/7 will make all the difference in whether or not you gain customers for life.
2. Generative AI (With Human Oversight)
Our LinkedIn feeds are inundated with ChatGPT right now—and for good reason. It can be a solution to mundane tasks, saving your team time and potentially saving you resources when it comes to headcount. That said, implementing ChatGPT is not an excuse to mass produce mediocre content and give an even worse reputation to insurance (because, let’s be real, insurance has a bad rep).
Not to mention, in insurance, compliance is key.
Tap into generative AI tools that can do the heavy lifting for you, but then make sure to add personalization touches on top. For example, this can be done with sales pitches, repetitive email communications and more. What you don’t want is to use this for something sensitive, like claims denials, and fail to implement human oversight resulting in errors that can lead to frustrated customers and potential legal snafus.
3. Modern Products For Partners
Developing new streams of revenue—especially in this economic environment—is key. And that means not only relying on going direct to consumer. What like-minded third parties can you partner up with who can best showcase your product to their audiences? For us in travel insurance, this means building a portal specifically for travel advisors where they can easily manage their business—from sending quotes and policy documents to seeing revenue in real time.
Many legacy insurers across verticals see the value in partnerships but have failed to provide these stakeholders with new-age systems to work with, instead keeping in place archaic, slow and confusing platforms. Come in, disrupt and make your company the easiest to work with thanks to tech advancements that make your brand stand out.
The Future Of Insurance
Insurance is ripe for disruption. If you come to the table with valuable technology that’s coupled with meaningful assistance, then chances are you’ll make a meaningful contribution to a space that’s in dire need of it.