A new report by research firm Timetric has revealed that advances in technology are enabling the widespread adoption of online direct-to-consumer (D2C) channels among insurance firms.
“The insurance industry is going through a phase of digital transformation. This process has (affected) the entire business function, from underwriting to claims management,” Open PR said in its report on the Timetric research.
Further, “Timetric found that the majority of startups aim to enable insurers to work with them on technology and consumer engagement, as opposed to disrupting and competing. Some are displacing agents by creating digital channels and addressing problems with current models.”
D2C channels enable maximized sales, and the provision of a wide range of services through the online platform, the report added. Other benefits include lower distribution costs and leveraging on direct interactions.
“Insurers which postpone their online presence will lose market share to competitors,” Timetric was also reported as saying.
“Customers are placing importance on the ease of service provided, and expecting delivery to be rapid. Digital trends developed by online retailers…make consumers demand the same level of digital convenience from insurers,” the report emphasized.
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