Europe’s largest insurtech conference concluded this month, highlighting the industry’s progress and the opportunities and challenges that lie ahead. Here are some key takeaways from the event:
- Leveraging the Ecosystem to Meet Consumer Needs
To succeed in today’s highly competitive market, insurers must understand and meet the needs of consumers at the right moment and time. By leveraging their ecosystem, insurers can gain a better understanding of the context in which their products or services are being used, and provide personalized experiences that go beyond just selling insurance products. Insurers need to use data and insights to create value-added services and build stronger relationships with their customers, ultimately improving customer retention.
- Embedded Insurance Redefining the Industry
Embedded insurance is redefining the insurance industry by providing customer convenience through streamlined processes and seamless customer experience. Companies can leverage embedded insurance to create revenue streams through their own channels and OEMs. Insurers should position insurance as value-added services that enhance the overall customer proposition, helping companies improve customer satisfaction and retention. Additionally, branding is an important factor in the success of embedded insurance offerings.
- Embedded Insurance – Opportunities and Challenges
Embedded insurance has the potential to offer enhanced value propositions and customer experience. However, it can also be viewed as a channel play that focuses mainly on generating commissions. To ensure that embedded insurance offerings generate real business value and address the protection gap, insurers must design products that meet the needs of target customer segments. Additionally, data and knowledge about underlying and associated risks are critical for success, and insurers should consider partnering with other players in the ecosystem to leverage their tech stacks and assets.
- Urgent Action Needed on the Climate Crisis
The climate crisis presents a significant risk. The impact on insurer operations and their client companies must be evaluated and monitored. Insurers should also assess how best to support their clients in the face of climate-related risks such as wildfires and floods. By failing to plan accordingly, clients risk disrupting supply chain activities and jeopardizing business continuity. It is crucial that insurers and their clients take proactive measures to mitigate the risks associated with climate change and build resilience in their operations.
- AI Driving Business Transformation in the Insurance Industry
Recent AI-driven initiatives, such as ChatGPT, have provided a boost to the insurance industry, and the momentum and optimism around AI are growing. To unlock real value, insurers need to ensure top-down and bottom-up buy-in, conduct experiments, and choose AI technology that can tailor to their desired use cases. By doing so, insurers can leverage the power of AI to transform their operations, enhance the customer experience, and increase productivity and business value.