Most life InsurTech players are competing to generate better value for customers in the three key areas of product innovation, distribution innovation and service-led engagement and personalisation, says a white paper released by the global consulting firm Oliver Wyman and the Singapore FinTech Association (SFA).
The white paper, entitled “Insurance Redefined – A Roadmap for Insurers and InsurTechs”, was released in conjunction with the Singapore FinTech Festival, held from 7 to 11 December 2020.
InsurTech opportunities in life insurance
For product innovation, InsurTechs are focusing on mobile value propositions and personalisation to bring faster and easier access to life insurance, while using data to improve underwriting processes. For example, Ladder offers a product that allows clients to plan for extra coverage when it is needed and taper off coverage at other times.
In the distribution space, InsurTechs are leveraging mobile and digital channels to improve their targeted customer reach. InsurTech company Bestow launched an algorithm-powered life insurance underwriting product, Protect API. It enables companies to offer life insurance coverage directly to consumers within their mobile applications or websites. The coverage can also be customised based on each individual life insurer’s preferences and provides life insurers with the ability to offer coverage solutions that are efficient, affordable, and personalised on a platform that their consumers already know and trust.
InsurTechs are also leading the charge on personalisation, applying artificial intelligence (AI) to simplify and digitise insurance, and through this, recommend tailored products to individuals. For example, PolicyPal in Singapore optimises policies through AI chatbots and recommends policies based on the customer’s phase of life. It serves as a digital insurance manager, keeping track of the client’s different policies and giving recommendations on how to update insurance coverage based on the client’s unique needs.
The opportunity for InsurTechs to continue to expand efforts in this space does not just offer the potential to disrupt a product that has proven limitations, it also comes with the prospect of addressing a societal need for customisable and personalised products, something that has previously been difficult to execute, says the white paper.