Flexibility and customization mark the ongoing innovation of the insurance sector

The digital transformation of insurance companies It represents an opportunity, obviously, but also a clear challenge that is not always easy to undertake. This is the digitization process that the sector is undergoing, a path in which there is no turning back and that has new technologies as great protagonists.

A reality that was manifested in the meeting organized by D+I and in which representatives of Hiscox, Hello Auto, Claverea, Exponentia and CESCE They shared the experiences and opportunities but also the obstacles that the digital transformation of the sector is posing for their companies.

Technologies that allow, first of all, offer new services as in the case of Hiscoxwhich has already launched new insurance policies arising from the very digitization of society, such as those related to cybersecurity or influencers.

Insurtech: Open collaboration as a response to accelerated disruption

Stephen Palazuelos

“For us, without a doubt, the transformation that both users and companies are experiencing is an opportunity. We cannot speak only of digitization because the process we are experiencing goes beyond, it is an innovation process and it is not just about digitizing processes. We are facing a change that opens new challenges, new protection needs such as the issue of cybersecurity, to which a response must be given. Changes occur in the market and you have to know how to adapt and respond to them, adapting your own products”, he stated. Ricardo Sánchez Partnerships & Affinities in Hiscox Spain.

Personalization and flexibility

A transformation that entails new business opportunities for insurance companies and that the client himself, also in this process of change, asks of them, as he put on the table Manuel Santiago, CEO of Hello Auto: “The user of car insurance who barely uses his vehicle no longer wants to pay a high fee; just as it is not logical that he pays the same one who uses it every day. We have to offer flexibility, customization and a pay-per-use model because society has changed and that is what it asks of us”.

something I agreed on Álvaro Sanz, co-founder and CEO of Claverea. “Pay for use is not only a trend but it is the logical thing to do; in fact, if we could design the insurance market from scratch, we would do it under that model”.

A transformation of the sector motivated by the very change of the clients that must also be extended to the way, in your opinion, in which the user relates to the insurer. “Flexibility is the key and in this technology is a great ally. There are clients who want an agent to assist them, others who only want to communicate with the company by mail or WhatsApp and others who, directly, do not really want to interact with their insurance company and what they are looking for is to self-manage the product they want to hire. , etc. Y we must take that into account and today, thanks to technology, it’s possible”.

A moment from the round table on insurtech organized by D+I.

Stephen Palazuelos

Technologies like blockchain for process traceability, automation to optimize the operations of insurers or artificial intelligence to extract the value contained in the data handled by companies are therefore presented as the ideal travel companions.

something that tastes good Juan Garcia Sanchez, CEO of Exponentia. “We are in a unique moment for the sector in which the challenges enclose enormous opportunities. We help insurance companies to precisely take advantage of new technologies in order to make the leap. It’s not easy, but it’s the only way.”

Regulation, a brake

Responding to the new demands and needs that digitalization has brought to society and, with it, taking advantage of the new business opportunities that this challenge also presents is the key, although, as the participants in the meeting also pointed out, It is not always a process without difficulties. In fact, the insurance industry itself is, by definition and by regulation, very conservative, something that is often at odds with innovation.

This is how he exposed it Karim Kaidi, Director of Systems and Organization at Cesce, who claimed that, firsthand, he had seen how when trying to launch a new product, the market’s response was that it couldn’t because it wasn’t regulated. “It is a sector that it moves very slowly and in which innovation always occurs before regulation”.

All agreed on the brake that the regulation applied to the sector supposes to innovate and, in that sense, Manuel Santiago, CEO of Hello Auto, reiterated how “the customer, today, can cancel his telephone or electricity supply contract at the time he wants something that does not happen with his insurance. He has to wait until the year is up, send a letter, wait for his case to be studied… It’s a 19th century process and I don’t know why but, unlike other countries like France, no progress is being made to respond to the new reality we live in”.

The value of collaboration

A challenge in which, in addition to dealing with the strict regulation that applies to the sector, they also play an important role the insurtech that are playing a fundamental role in the development of solutions that respond to the needs of the insurance sector and its clients and with whom it is essential to collaborate.

“We are trying to do things differently and to do this, for example, we need to review or redesign all our processes. In this sense, we are collaborating with smaller companies that have the agility and flexibility we need”, pointed out the Cesce spokesman.

Collaborating with startups but also with other insurers was the reflection made by the CEO of Exponentia: “Whenever there is innovation as a lever, there is opportunity. It is necessary to promote collaborations within the ecosystemeven collaborate with companies from other sectors, see how they are innovating in order to extract new ideas. Collaborate to innovate is essential”.

Hiscox also highlighted the need for collaboration between insurance companies and insurtech or even fintech but, even, that of promoting and develop innovation from within the companies in the sector.

“Opportunities to innovate there are always. Look for those competitive advantages, where I can improve the product, the service, a process… And in all this process it is very important to integrate innovation in the company. We, for example, we have developed an innovation laboratory, Hiscox Labs, in which we have involved our own business areas and our partners so that they are the ones who detect and decide in which processes it is possible to innovate”.

A path, that of innovation that, everyone agreed, is the only possible one but for which there are no magic recipes. “There is no magic recipe or single point of trouble to fix. It is a long road and in which there are multiple areas for improvement, from the insurance design itself, to the pricing system, to how we talk to the client… Technology is undoubtedly the way to achieve it, but always without forgetting the personalization of the service, the human part. We can’t forget that We sell promises the promise that if something goes wrong, we are there and that is difficult to manage”, recognized the co-founder of Claverea.

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