compare multiple insurance companies and products. The third piece of the solution is a powerful application programming interface (API) and data platform that connects to an insurer`s legacy IT, including policy admin systems and databases. Crucially, it also connects the organisation to DIG’s data pipeline. This helps to aggregate all kinds of external data, including contextual data, such as a customer’s location and health information, which the sales organisation or the robo advisor can then use to offer more sharply targeted products. The platform, in effect, steals a march on the Amazons of this world. For example, when geolocation data spots a customer is at the airport, it can push a notification saying ‘hey, you’re at the airport. Are you travelling? Do you need travel insurance?’. “This is the future of insurance,” says Weber. “The data-driven approach will have huge implications for underwriting. We will see much more lifestyle underwriting and DIG helps insurers to get there.” The DIG platform is designed to evolve as home, work and leisure become ever more connected for the average individual. “We are just at the beginning,” says Weber. “Once 5G comes along, we’ll have billions of sensors – lots of connected devices in our home, from our washing machine through to our home security system. The entire financial services industry can take huge advantage of these
data points and use them to customise personalised offerings for their customers.” Backed by top US and European venture capital investors, including Zurich Insurance, DIG operates from four offices in Berlin, Amsterdam, Zurich and Belgrade for clients in Europe and Latin America – although Asian insurers are also now knocking at its door.
Communication is key While DIG mainly works with banks, insurers and brokers, there is a fourth emerging client segment – corporate organisations across industries and verticals offering employee benefits in the form of insurance, which also suffer from lack of interaction. According to a survey of more than 1,000 employees conducted by group risk insurance provider Canada Life Group Insurance, employers should re-evaluate their communication methods when it comes to sharing employee benefits. One fifth of staff polled said they had received information about their benefits and perks
The biggest issue the incumbents face is that they have a very complex IT architecture and innovation takes a lot of time. That’s where we come in
when they first joined their organisation, but nothing since. “We see many corporates that want to offer insurance products and services to their employees,” says Weber. “For them, we have built portals that will be integrated into intranets to give employees access to their corporate benefit schemes. They also offer advice to employees.” Such platforms are being adopted by employers as varied as government agencies, technology firms and even football clubs. Evolving technologies are leading to massive opportunities in insurtech for boosting customer engagement like this, says Weber. The industry just needs to be creative in its thinking, but maximising customer experience has to be the goal because it leads to trust and loyalty. “Consumers want to interact with their insurance providers in the same way they interact with Amazon, Google or Facebook. This points to building customer-friendly products – mobile apps that allow them to manage all their policies in one place, buy insurances on demand, manage or follow through claims, and more,” says Weber. “You have thousands of insurers around the world, they all have the same issues, they all sit on legacy, they all know they’ve got to do something. Now is the time to act.”
Setting the pace: Insurers have been slow to respond to the digital consumer
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Issue 1 | TheInsurtechMagazine
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