They don’t care, that is, until certain situations arise. Ever tried to rent a car and been asked for your insurance information? Been pulled over and don’t have your insurance card? Panic sets in when you can’t even recall who your carrier is. That’s when people care. What this demonstrates is that the industry lacks user-friendly products and technologies that would actually engage consumers. There is a distinct disconnect between the insured and his or her knowledge/engagement of their own policies.
The insurance process is still relatively traditional. Consumers are rarely asked what they would like to see. There are focus groups for all types of products from food to diapers to car buying. Where is the comparable group for insurance, which would allow the product users to be more than just viewers “on the outside looking in”? Is there a cure for this malaise felt by the majority of insurance consumers?
With the rise of insurtech start-ups, there is the real potential to be a breath of fresh air and allow technology to both simplify the process and truly engage the consumer. For example, a younger, tech-savvy workforce, with busy lives and always on the go, prefers the option of conducting business via the convenience of a mobile app rather than direct interaction with a company. Studies have shown that Insurtechs increase the customer experience, which goes a long way towards eliminating consumer disconnect. Working in partnership with traditional insurers allows iInsurtechs to digitally engage the consumer, providing easier, quicker, 24/7 access to those products which have often seemed bewildering and difficult to obtain.
It’s time to enhance decades of traditional insurance practices and embrace the incredible possibilities that these new technologies offer. And, in the process, bringing people around to the concept of caring about insurance.