Written by FintechOS - February 26, 2021

4 minute read

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What’s in Store For Insurance In 2020? Three Take-Aways

Insurance needs to keep up with the digital transformation. How and why? Here are the top 3 trends that will shape the business in the near future.

  • If insurers are not careful, they may be pushed out of having a direct relationship with customers
  • Insurance is a highly data-intensive industry. How can big data be related to the digital transformation?
  • Compliance will continue to remain a top priority for the insurers

If you work for an insurance firm, and happen to shop from Amazon UK, it is very likely that you’ve noticed how openly and fast the online retailer seems to respond to customers’ concerns about protecting their products.

“Extended warranties, accidental damages and theft insurances are available for purchase (…). If you wish to cancel your insurance policy, you can do so (…),” states Amazon UK on its website. More than that, “Amazon Protect team should respond in one business day”. One business day.

A ‘born digital’ or digital native generation expects quick access and a friendly shopping experience, no matter the purchase – a new watch, a room for the holiday, a ticket to a football match or an insurance policy. That’s exactly the business philosophy that Amazon, today a multi-billion dollar business, was built upon since the very beginning, in 1996, “to be Earth’s most customer-centric company”.

What would be the key lesson from Amazon for insurance companies? “Insurance players have to redesign their core processes, products and services around their customers”, thinks Marius Lazia, Insurance Product Owner with FintechOS, a London-based tech company whose centrepiece technology puts automation and personalisation at the heart of innovation.

Lazia, 38, who has a 20-year experience in insurzance, has made a list of three trends that will shape insurtech in the near future.

blue doors with lock

Insurance needs to keep up with the digital transformation. How and why? Here are the top 3 trends that will shape the business in the near future.

  • If insurers are not careful, they may be pushed out of having a direct relationship with customers
  • Insurance is a highly data-intensive industry. How can big data be related to the digital transformation?
  • Compliance will continue to remain a top priority for the insurers

If you work for an insurance firm, and happen to shop from Amazon UK, it is very likely that you’ve noticed how openly and fast the online retailer seems to respond to customers’ concerns about protecting their products.

“Extended warranties, accidental damages and theft insurances are available for purchase (…). If you wish to cancel your insurance policy, you can do so (…),” states Amazon UK on its website. More than that, “Amazon Protect team should respond in one business day”. One business day.

A ‘born digital’ or digital native generation expects quick access and a friendly shopping experience, no matter the purchase – a new watch, a room for the holiday, a ticket to a football match or an insurance policy. That’s exactly the business philosophy that Amazon, today a multi-billion dollar business, was built upon since the very beginning, in 1996, “to be Earth’s most customer-centric company”.

What would be the key lesson from Amazon for insurance companies? “Insurance players have to redesign their core processes, products and services around their customers”, thinks Marius Lazia, Insurance Product Owner with FintechOS, a London-based tech company whose centrepiece technology puts automation and personalisation at the heart of innovation.

Lazia, 38, who has a 20-year experience in insurzance, has made a list of three trends that will shape insurtech in the near future.

“User experience has been dramatically influenced by tech giants in the past decades. “If insurers are not careful, they may be pushed out of having a direct relationship with customers and be relegated to the role of a price-driven risk carrier at the back end”, according to Insurance Business UK, quoting GlobalDat.”

– Marius Lazia, Insurance Product Owner with FintechOS,

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Disclaimer: This article was compiled based on publicly available information released by owners*. It is not intended to be viewed, nor treated as an official source of information.*The sources consulted for this article: Deloitte – “2020 insurance outlook” (2019); KPMG International’s Global CEO Outlook & The Digital Insurer (2019); The Economist; Insurance Business UK; CSO Insights; Amazon website; FintechOS competitive intelligence analysts (2020).

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