September 05, 2019
The maturing insurance industry has growing challenges for efficiencies. Will insurtechs come to the rescue?
In the same way that technology has disrupted and revolutionised the banking sector, insurtech innovations have taken effect in the Insurtech industry in the past year with 71% of insurtech businesses now either post-revenue or post-profit compared to 50% in 2018. This growth only scrapes the surface of the combined potential of established insurers and Insurtech companies in revolutionising the customer experience.
In May this year, IBIS World released their General Insurance Industry Report, stating that while a mature insurance industry reels in the threat of stagnation, the question we should be asking ourselves is whether this industry’s success can continue to thrive, or whether its survival relies on the rising power of Insurtech.
The insurance industry may be mature, but has managed to sustain itself due to stable demand from everyday Australians. The IBIS World Industry Report commented that Insurtech companies are utilising the technology and digital services offered by insurtech businesses, but not to the extent that they should to willingly reshape their existing systems and accommodate for newer ones. Insurers are urged to adjust their operations to keep up with current trends of a growing market, which involves collaboration with innovative insurtech companies and understanding their digital strategies, rather than using them blindly.
Insurtech offers convenient communication, flexibility and greater accessibility for customers. They can do much more than simply ‘disrupt’, however also ‘enable’ which promotes active collaboration and innovation between established insurers and insurtech companies. While the industry is expected to do well in the next 5 years, demand for insurance will increase dramatically especially when it comes to housing, motor vehicles and the greater chances of natural disasters. By combining the potential of reputable insurers and the new models of innovative insurtech companies, partnerships can create efficient methods of managing high volumes of claims, thereby enhancing the overall customer experience.
Therefore, insurers and insurtech companies can align their long-term goals to carry out a universal mission valued by millions of Australians.
To boost the industry’s performance, insurers can work closely with insurtech companies to establish or strengthen online presence for the benefit of accessibility and general exposure to a growing market. Simon O’Dell, CEO of Insurtech Australia, shares his confidence in the Insurtech industry, commenting that “With some careful nurturing, Australia has the potential to be a leading player in the global insurtech revolution”.
What does this innovation mean for the customer experience?
MoneyLoop's innovation means that the insurer can place their customer at the core of what they do. It enriches and enhances the customer’s experience as insurers will be able to support all their customers when they need it most! For customers, this means that they no longer have to borrow from family or friends, use their credit card or access payday lending ever again to fund their excesses.
How does this innovation drive business efficiency for insurers?
We know that on average, it takes 14 days for insurers to go through an end to end claims process, from the initial conversation with their customer to the time of accident, to full payment of excess. Given 40% of Australians need more time to find the money to pay their excesses, this removes multiple touch points and ensures some fantastic business efficiency. It allows insurers to have better conversations with their customers at the point of claim. This innovation ensures that insurers reduce the time it takes to process claims and enables a fantastic customer experience!
MoneyLoop for insurers, to help their customers.
MoneyLoop, a rising Insurtech, is already partnering with car insurers like Splend and Drive My Car to offer flexible, interest-free excess instalment plans tailored to the customer’s different financial needs. MoneyLoop was created to empower insurers to give their customers interest-free and flexible excess payments for life’s unexpected moments.
MoneyLoop ensures insurers can offer better customer experiences for everyday Australians, through their white labelled easy excess payment plans and easy to use digital platform. Given the trends of climate change and the increasing demand for insurance, MoneyLoop will be valuable in efficiently managing the large volumes of claims, giving customers options when it comes to paying their excess and saving insurers from potential stagnation.
Things look bright for Insurance.
The vehicle is here to help the insurance industry boost its performance, create efficiencies, improve the customer experience and decrease costs. Partnering and collaborating with Insurtech companies is the way to stimulate growth, harness new technologies and better service the Australian customer.
MoneyLoop places the customer at the forefront of their mission, ensuring that their financial and emotional needs are attended to. With our flexible, interest-free instalment plans, Australians never have to worry about not being covered in emergency situations.
Don’t take our word for it, see the many reviews left by our customers on their experience with us. We are excited to help more and more Australians every day.