2 min read
The last decade has seen an exponential increase in digital customer expectations. Being an industry steeped in tradition, the insurance industry started to feel the pressure, too. A good customer experience has become a staple expectation from any business nowadays in addition to being an essential competitive advantage.
To help businesses adapt to customer needs, insurtech brought a lot of new technology solutions since 2013. While the insurance industry has taken up these changes, lingering doubts still remain. Let’s look at some of the false beliefs that are preventing insurers from embracing technology solutions wholeheartedly.
Top lingering myths about insurtech
Digitization is always a heavy process
When talking of change, most companies imagine they have to switch straight away from 0 to 1000. No. The digitization process can take months which is why it is recommended that you go for an MVP. Eric Ries defined MVP as:
“That version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”
The goal is to create sustainable solutions that can show sustainable success. Digitization is not a one-time event.
The creation of sustainable solutions is also something that needs to be taken into account when insurtech seems to be ‘too expensive.’ Even when solutions might look expensive, always factor in the return on investment (ROI) over the long run. For example, the cost of the set-up and 1 year subscription for the software and maintenance should be easily absorbed by the value generated or savings realised within the first year.
Digitization is only about technology
This is another one of the biggest myths - that digitization only focuses on technology and is isolated from other business departments.
In reality, to be an effective organisation, digitization must be linked with business strategy and involve multiple departments. These include marketing and sales, operation and finance, technology and product. This is especially true for hotter insurtech products like chatbots. Organisation with modern culture apt for change will struggle less in involving different departments to work towards a common goal.
If digitization does not work in tandem with other parts of the business, then the full benefits of insurtech cannot be reaped for the business.
Digitization is a one-off project
To bring transformation, digitization must be a continuous, evolutionary process, rather than a short sprint. It needs to become a mindset.
Good digital solutions are self-enhancing and constantly provide opportunities. Look for solutions that are able to bring business knowledge by focusing on data and analytics. Companies - like athletes - are in a constant race to maintain or gain positions. Constant training, tactical and strategic decisions require refinement. This refinement impacts processes and the digital solutions that execute them.
Thus, digitization can be- and isn’t in any way- a one-off project.
It is essential to build a true understanding of digitization and what insurtech offers if companies want to enter and stay in this space. This is why we encourage you to reach out to us after reading the article. We also invite you to explore how Spixii solutions can help you meet customer expectations while boosting operational efficiency in a sustainable manner. You can get started here.