Digital is the new norm for customers. Big tech companies like Google, Amazon, Facebook, and Apple have paved the way and as a result customers are expecting more from their financial service providers as well. FinTech is therefore disrupting the traditional financial services industry as it provides innovative solutions for convenience, accessibility, and tailored products.
Additionally, Insurtechs and technology start-ups continue to redefine customer experience through innovations such as risk-free underwriting, on-the-spot purchasing, activation, and claims processing.
A report of Deloitte Global examined the forces that are disrupting the insurance industry and presented four possible scenarios for the future. In their report the following is explored:
- Changing the channel: Partnerships with product makers and distributors, and embedding insurance into other products and services may enable customers to select products that best fit their lifestyle.
- Underwriting by machine: Technology advancements including AI innovations and algorithms will likely individualize risk selection and pricing, and customers can select products based on a wider range of price points.
- Rise of the flexible product: Time-flexible, event-driven, modular and adjustable coverage may evolve to accommodate life stage, lifestyle, and wellness changes among consumers.
- E-Z life insurance: Given the growth and shopping patterns in emerging markets, insurers who introduce flexible term products and master digital distribution without compromising underwriting are likely to win in the marketplace.
Click here to download the Deloitte report.