In a report for The Times, PremFina outlines how embracing change, adopting new technological advancements and catering to customers actual needs, are key if insurance providers wants to remain competitive and relevant within the insurance industry.
“With the cost of insurance rising, alternatives to the current system are in much demand.”
We have selected some of the most key points for readers:
The Insurance Industry Can’t Afford to Be Ignorant
Wilful ignorance of technological change clearly does not lead to a blissful outcome. For example, Kodak: founded 1888, bankrupt 2012. Cause: digital photography. Borders Books: founded 1971, bankrupt 2011 – amongst many others.
New Insurtech Entrants are Turning Traditional Providers on Their Heads
Rather than push underwriter-centric rigid insurance schemes, new entrants like Clark Germany, Canada’s LEAGUE Inc and Knip AG in Switzerland are using advanced data analytics transparently, customized to uniquely tailor to individual consumer and business needs. In today’s world, millenials especially expect their providers to remember their preferences and personalise their experiences.
The PremFina Method
PremFina future-proof themselves via their business model and technology. Its software-as-a-service is able to achieve any customer preference to pay for insurance by instalments. PremFina organizes the cost of a premium to be paid to insurers upfront and gets reimbursed by those insured for the same amount with interest, paid on a monthly basis. Financing occurs regardless of whether insurance is sold via: a traditional high street broker, comparison website or disruptive new P2P insurer.
Insurtech Firms Are Properling Forward Quickly
Startups do not have a track record or brand reputation and that makes it difficult – or next to impossible – for them to borrow money from banks. Such barriers, amongst others, can keep competitors at bay however, giving those startups that make it a better shot at success. The insurtech firms that are up and running have already begun to successfully garner away market share.
Due to insurers not willing to adopt technology at a quick enough speed, this leaves open opportunities startups have become quick to seize and will continue to do so.
For the full report, please click here