Today’s insurance models are characterised by the customer’s needs. Personalisation, speed, transparency, simplicity and the ease of digital are becoming buzzwords. And in a market still viewed by many as confusing and consumer-averse, it’s no surprise that insurtechs pose a threat, with propositions that clarify, simplify and prioritise the customer experience. But all is not lost for the traditional insurer, who can harness the power of insurtech in several ways.
The insurance industry contributes over 25% of the UK's total net worth. Yet despite accounting for a quarter of national assets, the sector is facing what PwC has called a "consumer crisis of confidence." Today, just 27% of consumers trust their insurance providers, and less than half would turn to them for advice. Many insuretech businesses are looking to exploit this lack of trust, providing a fresh approach through simplified claims processes, transparent fee structures and self-service models. Traditional insurers can't ignore the rising threat.