Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Outgrowing your MSP; businesses need a provider that scales with their growth
  • Level 7 apprenticeship funding cuts will cost UK employers over £200m
  • Groundbreaking compliance tool to futureproof UK fashion sector
  • How much experience do you need to be a FTSE 100 CEO?
  • Four steps businesses can take to prevent expense fraud
  • Belfor UK bolsters SME offering with key hire in major & complex loss
  • 10 Most Common First-Time Investing Mistakes to Avoid
  • TravelPerk launches new medical and baggage insurance add-on
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Features»Reimagining CX journeys for insurance companies and the competitive advantage of digital-born insurtech start-ups.
Insuretech

Reimagining CX journeys for insurance companies and the competitive advantage of digital-born insurtech start-ups.

0
Posted By sme-admin on July 22, 2021 Features, Technology

In 2010 consumers began to see the emergence of Insurtech’s who promised a seamless service wherever and whenever they need it. More than a decade on, we can see the traditional insurance industry being fiercely disrupted by these early stage businesses. Across Europe, we are watching new unicorns making a lot of noise in this space, with some wondering if it’s just that; noise?

To what extent are Insurtech’s becoming a threat to legacy businesses? What makes them different to traditional insurance, and so gaining the trust of consumers?

Insurance is a purchase most of us will make at some point of our lives, either as a legal duty or through willingness to prepare for our children’s future. It has historically been, and remains, one of the most important transactions we can make. For decades this service has been handled by banks or legacy specialised companies, providing it the traditional way; through lengthy processes incurring many pain points and requiring extensive documentation which can be difficult for certain groups to acquire.

Not much consideration is given to efficiency throughout the process, from sign up to making a claim, especially when the contractual terms and ways to contact your insurer can remain blurry.

Interactions customers have with their insurer are typically when something unfortunate has happened and responses from the insurer can often be complex. Those few points of contact offered can result in insured customers not feeling a sense of attachment towards their insurer. Building a strong, customer centric, CX strategy requires a deep understanding of the customer, their motivations, fears, goals. Traditional insurers, who do not take their existing customer interactions seriously by using data and analytics, will fall behind their industry disrupting competitors.

Increasing efficiency, and empathising with customers to enhance their satisfaction and experience, is a hallmark of Insurtech businesses. Consumers are all too familiar with how easily they can sign up for subscription model services. They are also benefiting from T&C’s becoming clearer and easy accessibility to services thanks to the increased use of mobile apps. Start-ups, challenging traditional business models like the insurance industry, have unpicked the existing customer journeys, observed the greatest pain points and are focused on delivering enhancements that allow for easier forms of contact by customers, more personal touchpoints and overall reduced friction. As these reimagined ways of working with legacy insurance companies falls into our hands, it is easy to see how much room for improvement the original insurance process had, and it is hard to doubt why we would not embrace the new application.

Insurtechs are rapidly improving customer journeys, and customer experience as a whole. The most simplistic but revealing example is the digitally native aspect of their business model: everything is done through their website or App, whilst not even needing to call someone, making it easier for them to offer a quote and move towards the next step. Meanwhile, some traditional insurers will still ask you to come in-person, to some of their offices.

In fact, the very birth of these companies is by listening to consumers: hyper personalisation, more transparency and in some cases, a price reduction. This is enabled by embracing new technologies, beyond simple digitalisation of documents, it’s about using AI to check and regulate set up requirements, allowing customers to get their quotes quicker. This goes towards simplifying that lengthy process, whilst integrating empathy towards customers, rather than handling them as simple equations. This, coupled with strong integrity and an effort to simply manage customers’ expectations better, is allowing insurtechs to build trusted brands.

Insurers needs to follow that trend, as our expectations for rapidity and doing it easily through our mobile phone, have increased through time and will carry on doing so. For now, Insurtechs still need to gain the trust of consumers: despite all the above arguments, a vast majority of individuals would trust a traditional insurer due to the importance and historical lack of transparency in the insurance processes, but this part is diminishing.

Consumers are trusting online processes more and more, which is a real threat to traditional insurers, who need to embrace insurtech’s way of dealing with customer experience: shorter customer journeys, less pain points and more regular and tailored points of contact through their smartphones. If we continue to see insurtechs improving their customer experience through thorough data insights and analytics, there is no doubt that trust will be gained.

 

Author: Nora Beqaj, Business Director, The Nest UK by Webhelp

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Outgrowing your MSP; businesses need a provider that scales with their growth

How much experience do you need to be a FTSE 100 CEO?

James Wilkinson CEO of Rock Face Talks to SME Today

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Get £100 of free trades - ii trading account

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Events Calendar
    • Marketing
    June 25, 2025

    From PLT to Twitter X: Business Branding Decisions That Backfired

    June 20, 2025

    Fast fashion giant Shein accused of “dark marketing” – what does it mean for businesses?

    • Finance
    July 1, 2025

    Level 7 apprenticeship funding cuts will cost UK employers over £200m

    June 30, 2025

    Groundbreaking compliance tool to futureproof UK fashion sector

    • Health & Safety
    January 29, 2025

    UK takeaways guilty of shocking hygiene failures:

    December 18, 2024

    Comment on Covid Corruption Commissioner Investigation

    • Events
    June 19, 2025

    Windsor Expo Wows: A Showcase of Success, Innovation, and Local Business!

    May 27, 2025

    Jose Ucar Confirmed for Leadership Live 2025 Speaker Line-Up

    • Community
    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    June 2, 2025

    National Charity Accelerates Children’s Reading Through New Corporate Partnership

    • Food & Drink
    June 23, 2025

    England Cricket Captain, Ben Stokes OBE, takes a stake in Spencer Matthews’ alcohol-free spirits brand, CleanCo

    June 16, 2025

    Hospitality industry risks collapse

    • Books
    April 24, 2025

    Values-Driven Professionalism: A Path to Client Loyalty

    December 2, 2024

    Banish the banshee boss: how to lead without fear – addressing the issue of fear-based management and how NOT to be this manager

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Most Recent Posts
    July 1, 2025

    Outgrowing your MSP; businesses need a provider that scales with their growth

    July 1, 2025

    Level 7 apprenticeship funding cuts will cost UK employers over £200m

    June 30, 2025

    Groundbreaking compliance tool to futureproof UK fashion sector

    June 27, 2025

    How much experience do you need to be a FTSE 100 CEO?

    June 27, 2025

    Four steps businesses can take to prevent expense fraud

    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health

    Copyright © 2020 SME Today.

    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.