Stripe recently hosted an event in London with Cuvva and other insurtechs to discuss the trends shaping the future of insurtech. We learned a lot about this fast-moving industry where advances in software are having real impact on consumer choice; here is a handful of insights
1. Consumer expectations are evolving rapidly
There is surging consumer demand for a more personalised insurance experience available in the palm of your hand. The expectation is that this is real-time and frictionless, a step change from the old days of making appointments and waiting in telephone queues with legacy providers. Insurtech startups are pioneering these kinds of experiences by partnering with innovators to use best-in-class mobile SDKs and machine-learning technology to build and scale mobile-first products.
2. Mobile is having a profound impact on distribution
Responding to changing consumer behaviours, insurtechs are distributing insurance via mobile phone apps. Cuvva users, for example, can easily just take a selfie and a picture of a car using their mobile device, and from then it’s only a few more taps before they are insured and ready to drive!
3. Price comparison sites are under pressure to innovate
Doubts loom over the future of price comparison sites. Consumers are increasingly frustrated with their focus on price, rather than the suitability of the insurance product. We’re seeing a shift to a more holistic approach of understanding people’s needs.
4. Software is bringing odd-shaped products out of the dark ages
Historically, insurance has been an odd-shaped product and providers have struggled to get the right product to the right person at the right time. But this is changing as software transforms the industry. Consider, for example, how mobile-first, sophisticated insurtech models are powered by Stripe’s technology, which lowers the friction of buying insurance on mobile and enables complex models to scale by automating complex fund flows.
5. Where next?
We’re at the early innings of insurtech and discussed a variety of areas ripe for disruption. Specifically, claims handling was highlighted as a process dogged by inefficiencies. And the promise of wearables making insurance more personalised and efficient based on context is an exciting one too!