There is much to suggest that the changes are not just a trend, but a redefinition of the entire industry, resulting in many new opportunities for online trading and the retail sector.
The advantages of the digitalisation of insurance
There are a number of good reasons in favour of the digitalisation of insurance. These reasons result in advantages that make integration interesting for your company. In principle, it is irrelevant which business model you have, as the integration options are diverse and offer solutions for retail, e-commerce, sharing, renting and leasing models. In the following blog post, however, we will take a closer look at the benefits of retail and e-commerce in particular.
But first, let's take a look at some of the key developments that are shaping the trend towards integrated insurance and that you will probably have noticed:
Optimising the customer experience
Digitalisation is contributing to a massive change in customer needs. It has long since become the norm to be able to find practically anything online and buy it with just a few clicks. Accordingly, one trend in e-commerce and retail is to continually improve the shopping experience. According to Adyen's Retail Report 2023, this is exactly what 67 per cent of consumers worldwide want.
This includes, for example, smooth communication that is both automated and personalised. Whether it's buying an e-bike, laptop or sports equipment or, in the insurance sector, taking out an insurance policy, renewing a policy or filing a claim - online transactions allow customers to do everything conveniently around the clock and from any location. Fully focussing on customer orientation is also worthwhile in a difficult environment. According to the Adyen study mentioned above, 56 per cent of retailers surveyed felt they were in a better position in 2023 despite high inflation because they had invested in the customer experience.
Cost reduction
Digitalisation plays a key role in enabling insurers to make their processes more efficient and thus reduce their costs. In a 2016 study, Google and Bain & Company concluded that digital processes can save around 25 per cent of the costs incurred in the insurance business with industrial and commercial customers. To remain competitive, it is therefore necessary to digitalise, link and radically simplify processes in a targeted manner - for the company itself and customers, of course.
However, digitalisation not only contributes to cost savings but also opens up opportunities for new revenue. What does that mean for you? In the case of hepster, this means that you will not incur any costs when integrating the insurance solution - neither for the integration nor for monthly usage fees. You receive an extension of your service offering from a single source - just like your customers - and benefit from your commission for each insurance policy taken out via your shop.
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Increased sales productivity
Digital processes can increase sales productivity. An important aspect of this development is the online dispatch of documents and invoices. A survey by BearingPoint found that one in three respondents between the ages of 25 and 34 had already cancelled an exchange with an insurer because it was only possible by post. This won't happen to you: Benefit from a high conversion rate because of our seamless processes after the purchase of the product including insurance. Your customers will receive their insurance documents by e-mail after booking. Our team is also available to answer your customers' questions about the insurance products.
Uncomplicated approach
You generally don't need a large IT team or expertise if you want to integrate digital insurance. The partner company/InsurTech supports you in implementing the right insurance solution. Whether it's checkout app integration or a solution for your point of sale - with the right InsurTech at your side, the insurance will be seamlessly integrated into your customer journey.
Dealing with sensitive data
Securely handling sensitive data is naturally one of the biggest challenges facing insurers. Digital insurance companies work with enormous amounts of data that attract many cybercriminals. Whether malware, ransomware or phishing attacks: Hackers' methods are constantly evolving. Failure in their core task is not only financially risky for insurance companies but can also ruin their reputation. Promising and adhering to GDPR compliance is therefore all the more important to gain the trust of customers.
Employees must be trained and sensitised accordingly to ensure compliance with the legal regulations. The security of IT systems is also important, as are precautions against misuse.
Sustainability
Sustainability is playing an increasingly important role for consumers and companies. Whether it's social pressure, the fundamental corporate philosophy or the legal basis: companies in particular cannot escape these three pillars and are therefore obliged to act in a forward-looking and sustainable manner. The planned EU regulation, which provides a "right to repair" for electronic devices and consumer goods, also aims in this direction. The topic of refurbishment is moving centre stage, to extend the service life of devices.
The extension of the product life cycle also plays a central role in insurance policies. "Repairing instead of throwing away" and complete digitalisation is the motto of InsurTechs, which can help companies to position themselves more sustainably. By offering insurance as a service and sustainability promise with the product, you as a company in retail or e-commerce are strengthened in terms of sustainability.
Sources
https://www.adyen.com/de_DE/knowledge-hub/retail-report
https://thinksurance.de/blog/digitalisierung-der-versicherung-eine-branche-im-wandel/
EU pushes "right to repair"
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