Are Insurers doing enough to brace themselves for the digital disruption?
“In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment”
Although Charles Darwin is often attributed for this quotation, there is no substantive evidence to support it. Regardless, we are witnessing a technology led disruption of almost every industry. While Simple is redefining the online banking experience, we have seen Uber change the rules of the game for cabs, Airbnb has disrupted the hotel industry and even Facebook has caused a disruption of social media. The list is long and examples aplenty.
Insurance industry is not immune to disruption
For long, the industry which has seen insurers compete against each other is now at the forefront of a massive paradigm shift – and digital is driving this. Digital is not just changing the needs, wants and desires of a consumer but powering an attitudinal shift. There is a shift towards customer centricity that has resulted in customer driven engagement and empowerment. Digital is the foundation on which consumers are not just demanding what they want, but how they want it. Insurers are being forced to offer personalized products for each individual.
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Traditional insurers for long have neglected this aspect that has left the consumers wanting. Technology led start-ups are focusing on enhancing the customer experience. Internet based insurance agencies like CoverHound are offering personalized and transparent insurance solutions. There are others like comparenow that simplify insurance shopping by serving as a one stop shop for all insurance needs. Then there is the digital powerhouse Google which has launched an auto insurance shopping site in the U.S. in addition to getting itself licensed to sell