4 min read
While microinsurance has existed since the 90s, it is a relatively new field for businesses to invest in. Which is why when going about investing in it, companies can go a bit overboard. Yes, there are essential processes to be set in places like tying up with local NGOs and organisations, crafting onboarding processes, tweaking and rewriting terms and conditions to suit the intended demographic, etc. But, apart from these, there is only one essential tool you need to increase the efficiency of your microinsurance processes. And that is: automated insurance solution.
As with any venture, your expansion into microinsurance will be met with the following challenges:
High initial capital requirements
Which will also require you to fly off to another country to set up the system. Then return repeatedly to ensure it is working at peak capacity and to smooth out any troubles. Legal requirements will also need attending to.
Difficulty in market penetration
Working on generating awareness and evoking interest for your products among the intended groups. These are people who wouldn’t have heard of microinsurance ever and would be wary of possibly being robbed. When they don’t have enough to eat, why would they spend what they have on something as intangible as microinsurance?
You might or might not reap the returns you had hoped for. Even in the long run.
High levels of personalisation required
With insurance policies in urban areas, the client profile is more or less the same. If not, then it can be easily segmented. Thus, there are factors to help in clustering. In microinsurance, each case is more or less unique. Even if two families are facing the same health crisis, there will be other variables that lead to their profiles being totally different. Thus, each case would be different, more or less and high levels of personalisation would be required.
How automated insurance solutions help
For each of the challenges above, automated insurance solutions are the way to go. By setting up the system once as part of your regular operations, you can take effectively combat the above challenges. Here’s how:
Initial capital requirements reduce
Even if you do not have a fancy office set up, people can still purchase your products. Digital robots make this happen. We mentioned in the last blog how the global and connecting power of the Internet will play a crucial role in propelling microinsurance forward. This power is what you will be using when you deploy Spixii automated insurance solutions.
With the help of microinsurance mobile intermediaries who partner with mobile network operators in the country of operations, you can start building a market without pouring huge amounts of capital at the onset. They can help in the onboarding process and ease their transition into digital purchases.
Market penetration becomes easy
The Internet is spreading out its roots. From 2018 to 2019, rural India witnessed a jump of 35% in registered Internet users. There are an estimated 251 million Internet users in rural India. Numbers are rising in other countries as well.
With this global reach of the Internet, it becomes easy to take microinsurance even to the remotest parts of the world. To top it off, automated insurance solutions can also be deployed in the local language which further increases their usability and penetration power.
Risks are offset
With the technical and precise power of automated insurance solutions, the margin for human errors decreases. A machine is not likely to be affected by mood and miscalculate the claims made or the revenue generated,
Moreover, Spixii solutions do not stop at integration. We closely analyse how well the solution is performing and the resultant statistics it is generating. We then compile this information into a comprehensive and detailed report which will help you get the real picture instead of one pieced together through guesswork or sketchy knowledge. This information will be invaluable in helping you determine what the right next steps for your business are, and the areas where you need to pull back and invest more.
Personalisation happens instantaneously
Hands-down automated insurance solutions make personalisation easy. For each unique case, Spixii Distribution solutions can provide instantaneous personalised quotes without the need to have back and forth calls with a broker or filling out non-responsive webforms and then waiting almost 24 hours to get an answer.
Thus, all in all, automated insurance solutions can help to smooth out your transition into a new and unfamiliar territory like microinsurance. And in addition to using them in unfamiliar lands, you can use them back home as well for effective customer segmentation and serving them in a personalised manner. You can also generate data and insights about the target demographic which makes it easy for you to address their actual needs instead of imagined and assumed ones.
To get a taste of the power and ease of automated insurance solutions, get in touch with the Spixii bot now!