Insurance distribution is changing thanks to technology observed Bahaa Abdul Hussein. The existing models of insurance distribution face disruption. With insurance companies adopting digital transformation, it is not a surprise that insurance distribution is changing. Digital transformation has made insurance efficient, personalized, and scalable. In the future, we can expect major changes in insurance distribution due to digital transformation.
Insurance distribution and digital transformation
There are five new insurance distribution models that have come up in the age of digital transformation. These new models are likely to become popular in the future.
Virtual insurance advisor
Insurance advisors are now available online. Buying an insurance policy is now as simple as buying products from an online grocery store. Customers can get personalized insurance advice through the virtual advisors. The use of automation ensures efficiency and also allows customers to get prices lesser than those in traditional channels.
Risk coach
It is possible to keep a close track of customer behavior and actions. Insurance companies are now partnering with data providers and other vendors to create an online risk profile. The profile can be used to offer personalized advice on risk reduction. Insurance advisors can serve as a risk coach to help customers reduce risks of loss.
Plug and play agent
Customers today are willing to buy insurance while buying other products. For example, they would be willing to buy auto insurance while buying a car. When shopping online, they would be ready to buy online insurance from service providers. Tapping into an e-commerce network will help insurers spread their reach to new customer groups.
Ecosystem orchestrator
Insurance companies can partner with other businesses to offer insurance products along with other products. For instance, an insurer can partner with a bank and offer insurance products to cater to the financial needs of the customer. Similarly, they can partner with wellness providers to offer health insurance plans keeping in mind their specific wellness needs. Such a personalized and holistic ecosystem can help in broad basing their reach.
P2P network operator
There are many data sources available for insurers online. Customer data is available from social media and other online channels. Insurers can use this data to understand customer needs and offer them relevant products. Pooling of customers is easy thanks to such data. Pooling customers with similar needs allows insurers to offer products at competitive prices. Such peer-to-peer coverage is already implemented by insurers.
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