While innovation in consumer telecommunications (think cellphones) receives the lion’s share of media attention and consumer hype, the future of insurance promises to deliver its own exciting flavor of digital innovation. Digging deeper, innovation in insurance is poised to affect virtually every piece of the industry, from digital health insurance to insurance software design.
There are three things insurers can leverage to bring digital transformation to the insurance industry in the coming years.
Internet of Things insurance products are one of the more exciting areas of insurance innovation. One branch of these products includes specialized devices that focus on specific data collection about customers’ usage of appliances and vehicles, collectively called insurance telematics. These devices require smart apps built on platforms like Mendix to gather and compile relevant data. Progressive Insurance, for example, now offers its customers a vehicle tracking device that tracks how often the policy holder hits his/her brakes and how many miles are driven on average.
Everyday devices can also now be leveraged to capture and transmit customer data anonymously, giving providers better information about their customers when developing life insurance sales ideas. Insurance IoT devices in the form of wearables and working in conjunction with IoT applications can also help digital insurers come up with ways to reward their individual customers for living healthy or less dangerously. Companies such as John Hancock have already tapped into FitBit technology to offer better rates to those that spend time exercising every day or for counting calories via barcode scans.
Insurance innovators have already spoken about the advantages of direct selling using a multichannel ecommerce platform or a multichannel app. These new selling models will help to drive out intermediaries and connect directly with potential customers in specialty areas of insurance. Digital insurers can also offer insurance products at a lower, more competitive prices when engaging multiple channels directly and handling logistical matters faster with innovations like automated underwriting.
Focusing on new demographics can help reshape an existing product to create a new offering. Going after younger demographics means reaching them where they are, online and on their mobile devices. Mobile apps developed on a mobile enterprise application platform will make claims management easier to maintain in real-time. Consumers will be able to login via this claims management software on their phones and input important details regarding their claims.
The insurance industry is primed to integrate some of the latest developments in digital technology and it is in insurers’ best interests to stay up to date – Mendix is committed to helping those insurers prepare for the future of insurance.