Insurtech companies are looking to improve customer experience, according to a report commissioned by InsurtechNZ, a working group created by FintechNZ, and are focused on addressing the regulators’ criticisms of the industry.
Referring to the Reserve Bank and Financial Markets Authority’s conduct report on the insurance industry, InsurtechNZ Chair, Jason Roberts, says the insurtech movement is looking to address the concerns raised around lack of transparency, lack of customer support and too much focus on sales.
“The insurtech movement is looking to address all of these things by giving more customer control, more transparency, better value and a more efficient delivery of product. Customer experience is the number one priority,” Roberts said.
New technology is helping to create improved products, according to the report.
Wearables and telematics investment in technology is paving the way for new product offers while the rapid emergence of AI driven solutions including chat bots, digital human assistants, object recognition and voice biometrics are leading to more accessible and personable channels.
“For the customer, the frustration of dealing with call centres and filling out repetitive online (or paper forms) to undertake basic transactions with your insurer are quickly being replaced by digital experiences that are more relevant,” said Roberts.
“This is good for customers – and the insurers but does require the insurance sector to invest in customer-focused solutions often requiring updated platforms and technologies.”
Since 2017, 17 new insurtech companies have emerged.
“Our survey found 72 percent of insurtechs are already working with an established insurer, broker or services provider. Some 83 percent of respondents believe insurtech companies will be competitive globally,” Roberts said.
“However, 63 percent do not believe there is enough collaboration between incumbents and Insurtechs to realise a successful transformation to the ecosystem.”
The survey also found:
- 77% of players are finding solutions to improve the efficiency of insurance administration,
- 33% use a new business model and existing technology
- 29% focused on integrating multi and omni-channel
- 25% focused on AI