Imagine saying “Alexa, buy insurance!” then receiving an insurance policy. You would not even have to specify what type of insurance policy you need, as the artificial intelligence working in the background will already have worked out when your renewals occur, and what your preferences for any given policy would be.
These kinds of innovations have already happened in other industries such as online retail. Amazon, for example, can automatically select the best-matched product to your Alexa voice command, while UK online supermarket Ocado offers an automated weekly grocery shop based on customers’ tastes and the amount of time it takes them to use their favourite items.
However, despite some already functional AI tools such as telematics in motor insurance and wearable fitness technology in life and health, buying an insurance policy on a single voice command is still pretty much science fiction.
So why is that? The answer is because the insurance buying process is traditionally very complex and lengthy.
The vicious cycle
Particularly for life and health insurance, the traditional buying process is often hugely time-consuming and complicated for the customer, and very inefficient and complex for the insurer.
The challenging process makes customers less inclined to buy, which in turn makes distribution more taxing. More money and time is required in order to attract fewer customers. The cost of distribution makes the products more expensive, which drives even less engagement with consumers.
Many insurers feel trapped with complex back end processes based on dated legacy platforms, and believe that it’s difficult to change this overnight.
The fast and easy track
Many start-ups have tried to address some of these challenges, but only a few have the holistic approach required to solve the problem.
In the life and health sector, established brands and insurers from across the world are choosing to partner with iptiQ, a totally digital platform that allows for a simpler, more engaging buying experience and a great deal of product configurability. As a result, our partners benefit from tailor-made products that are easy to buy without advice.
Through data insights and constant improvements based on testing the customer journey, we optimize sales techniques and customer engagement. Thanks to this approach, we can improve conversion rates and lower distribution costs.
As a result, life and health products become much more simple, accessible and more engaging for consumers.
I strongly believe that iptiQ will help protect more families by changing the way we sell life insurance, and that it will someday be available with voice assistant technology like Amazon’s Alexa. Technology enables us to simplify and even eliminate many steps in the buying process, as well as lowering the distribution costs associated with purchasing a policy.