How Insurers can Leverage FinTech to the Maximum
by Arina Smith Insurance 06 March 2018
Someone, somewhere in the world is set up their own business of some kind – be it a small one or a new branch of a renowned franchise. Well, “beginning is always the hardest,” they say. Not exactly!
We, today, live in a tech-savvy society and individuals in urban and semi-urban areas have access to the Internet. The availability of smartphones makes it a lot easier for everyone to keep in touch with one another even on the go.
Individuals and Businesses to Leverage Technology-driven Approach :
The growing awareness of the Internet and the easy availability of affordable smartphones are helping businesses to grow. Individuals even in Tier II cities now prefer to buy things online over local stores. The same goes for the Insurance Industry in India. Anyone who wishes to buy an insurance policy can get it issued conveniently. Insurance web aggregators like PolicyBazaar (a FinTech company) have made it pretty easier for individuals to compare insurance policies online and get the best deal.
Social media platforms like Facebook, Twitter, YouTube etc. are complementing businesses by providing organizations and their customers with a common platform for easy interaction. Customers can conveniently share their personal experience regarding the product(s)/service(s) with the company. At the same time, the company (service provider, here) is bound to respond to all Policybazaar YouTube page comments, as they are publically visible on their timeline.
Technology-driven Approach affects Consumer Behavior :
Today, we are surrounded by modern technologies and their respective applications that have made life easier for us. In fact, we now have become used to the technology-driven lifestyle and the same now seems like a key to do almost anything, everything, and anywhere and that too in a few clicks, in almost no time. People now have ways to evaluate their investments in the financial industry and the insurance industry as well.
Now that the industry is rapidly evolving and consumer behavior is changing aggressively, insurance companies nationwide have started connecting with FinTech companies to gain solutions to their needs like expanding the spectrum of their services and financial transactions that happen over mobile devices.
Customer-centric Benefits of Connecting with a FinTech Company :
Connecting with a FinTech company is beneficial to both organizations and consumers in various ways. If an organization gets financial benefits, then consumers also have the advantage of saving on insurance premium. The following are a few consumer-centric benefits:
Shop at your own Convenience :
Consumers, today, have the advantage of providing their details online, comparing and analyzing various insurance policies, and then choosing the best policy as per their own interest and affordability. Technology applications ensure that customers do not face any inconvenience during online monetary transactions, which the service providers might have to tackle later. Monetary transactions occur in real time and orders are placed virtually.
Cost-effective Deals :
The online insurance marketplace brings ease to the consumers’ lives, which not only reduces the employment cost of the service provider but reduces consumers’ time to buy an insurance policy of their choice. Consumers can compare various policies offered by different insurers and buy the right policy at a reduced premium.
Diversification of Products :
Online insurance aggregators provide consumers with a broad spectrum of insurance policies offered by the various insurers. By offering insurance policies online, insurers find it easier to target a wide space of consumers nationwide. Also, the cost incurred to make policies available to consumers remains minimal. At the same time, the life of consumers becomes so easy that they can explore various insurance policies while sitting in their home or even on the go and end up taking a well-informed decision.
Paperless Transactions :
Technology advancements have made human life painless. Today, you can get your e-KYC done at your home and get your policy issued in practically no time. Automated system for claim processing post document submission has made quick claim processing a reality. Believe us when we tell you that the time is not too far when we all will be able to live paper-free lives.
Growth Opportunities :
Every organization wants to grow and become well-known for its outstanding performance. Connecting with FinTech companies can really help, as the sector is rapidly growing today. Unlike various other service providers, FinTech has a stable model. Also, there is no such discounting scheme that eats into its margins, inventory and stock expenses that need to be factored in, order fulfillment to be taken care of or worked out over time. Thus, it is clear that associating with a FinTech company that has a credible strategy and clean, assured growth trajectory can really turn out to be beneficial for both.
The partnership of both insurance and technology has redefined the way insurance policies were purchased by consumers in India. Since the advantages are quite obvious, insurance companies can certainly align their business strategies with that of a FinTech company and leverage to the maximum. However, these companies must not overlook what their customers have to say about them and their services, especially on social media websites.
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