What can Insurance learn from Fintech?

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What can Insurance learn from Fintech?

Connor previously worked for a leading Credit Reference Agency where he focused on the Insurance Sector. Most recently Connor managed a New Business and Account Management team.

His interest in fast moving innovative business, meant he spotted the need for better automation within the Insurance market. Leading him to make the move to TruNarrative in early 2019.

Connor now leads TruNarrative’s Insurance sector strategy. 

 

 

 

What can Insurance learn from Fintech?

 

Most of us do some sort of banking on our phone these days. Did you ever think you’d be able to open a bank account and start making payments within a matter of minutes without leaving your home? 

Digital consumer banking has come a long way since the first mobile app and text service introduced by RBS in 2009. 

Consumer banking is now done on the small screen and increasingly rarely on the desktop let alone face-to-face. Instant access and instant decisions are now expected when purchasing and interacting with financial products.

 

Insurance is heading in a similar direction but are there learning opportunities from Fintechs/Challenger Banks?

KYC

 

Interesting apps like Wrisk, Trov and Cuvva are setting the tone for what will undoubtedly become a world of insurance on demand.

But, how long before Amazon starts providing cover for devices bought through them with Prime? Is there any industry where someone hasn’t drawn a parallel to Amazon? Only recently have challenger banks been scrutinised in the media for lacking AML processes in the pursuit of a frictionless customer journey.

Having worked for one of the CRAs, I’ve worked with many insurance companies looking to implement a frictionless journey whilst still identifying insurance fraud.  

Keeping up within the digital world is vital to remaining competitive.

 

However, like some challenger banks, you don’t have to put yourselves at risk of fraud or money laundering in an attempt to improve customer journey. It’s possible to achieve both.

Improving the customer journey, making it faster, simpler and with less friction; whether this is a tech savvy, new entrant using this as their USP or an established firm remaining competitive; is a goal present across the sector.

I remember a phone salesman once claimed that the more expensive phone insurance from him would replace my phone much quicker and with less fuss than if I shopped around online. Whether he was right or not I will never know, but I parted with the extra £5.99 per month, and funnily enough, a replacement phone was shipped out to me in a very Amazon like fashion, the very next day.

 

Where they can, the Insurance Sector needs to automate manual processes.

From diminished brand reputation due to a laborious claims process; to an insurance policy being cancelled due to a lack of customer validation; to increasing customer drop out rates due to the level of friction involved, a manual process is going to increase your costs and reduce your written premium.

 

Criteria for robust ID Verification

Two priority areas for automating the process are; customer experience and fraud detection.

Customer Experience –When we (consumers) buy anything, from a taxi or a takeaway to a car or an insurance policy, we expect a fast, frictionless, journey.

Fraud Detection – Stolen identities, account takeover, ghost broking, organised crime, fraudulent claims. The insurance sector is attacked by fraudsters from many angles and at every point of the customer journey.

 

The question is, how does the Insurance Sector achieve both improved customer experience and  fraud detection?

How do you know that a customer or customer’s claim is legitimate or know with confidence that a specific quote or claim that you have refused is in fact fraudulent?

We have instant account set up across most sectors and same day claims decisioning within some insurance companies. Sites like moneysupermarket.com are now offering reviews and rating of insurance providers. 

Competition is no longer about price or even about marketing, it’s about an organisation’s ability to process and decision on multiple data sources, in a smooth, frictionless manner.

The TruNarrative platform uniquely allows insurance companies to automate the process for identifying insurance fraud whilst automating the customer journey.

 

 

My Next Blog – Coming soon – Is insurance fraud slowly sinking your profits?
  

To discuss further or arrange a meeting at BIBA 2019 then complete the below details.