PwC recently published a report highlighting that one of the main issues insurance companies are facing in today’s landscape is flexibility. Flexibility is important not only for the business itself to be able to adapt to challenges, but it’s also important for customers to be able to get the level of service that’s right for them at that point in time.
We often discuss why we believe bespoke software is crucial to the insurance industry as a whole – in this article, we’ll look at why bespoke software is one of the key factors that will help insurers become more flexible.
Bespoke Software for UBI and BBI Policies
Traditionally, insurance has always been sold at a fixed rate for a fixed period. But in recent years (amplified by COVID-19), customers have started to question why they’re paying to cover something they’re not using equally all year round e.g. cars or office spaces. Keen to stay on the good side of the consumer, many insurers particularly in the automotive sector are now exploring Usage-Based-Insurance (UBI) or Behaviour-Based-Insurance (BBI) so that the premiums people pay are representative of how much cover they need at that point in time.
Most insurance systems are still geared towards providing quotes and cover in the traditional way. This is where bespoke software has a significant advantage since it can be completely tailored to how the insurance company wants to offer their policies and enable them to be more flexible for their customers. Bespoke software will enable insurers to use real-time data and continuous assessments to evaluate, underwrite and price risk for their customers.
Bespoke Software Supports Partnerships
Consumers are always looking for ‘more’ from any business they buy from – including insurers. One way that insurance companies have started to offer more flexibility in their services is to partner with other brands that serve their target audience.
UK-based private medical insurer Lime Insurance recently announced a partnership with Benefex that enables their cover to be sold via the partner’s employee wellbeing platform. The applications coming in via this platform (or any other partnership method) may need to be processed very differently to those that come in via traditional channels. There are little-to-no existing software solutions that can facilitate these processes for insurers which is why bespoke software is a must-have for any organisation looking to expand their offering in this way. Bespoke software ensures that all parties involved experience a seamless process while also taking care of the security and compliance measures that need to be considered when transferring private and confidential data.
Effective partnerships with other brands also mean that insurers will often need to share information in real-time across multiple channels with several key individuals – this is simply not possible to do in a safe, reliable, and structured manner without bespoke software.
Bespoke Software Can Help Insurers Predict
PwC writes that “the key to effective underwriting is understanding behaviour”. Over the last decades, incredible strides have been made in AI (artificial intelligence) and ML (machine learning) technology that enables insurers to not only provide more personalised underwriting for customers but also to predict how they will need to adapt and respond moving forward.
While both AI and ML are increasingly become a part of the offering for commercial software applications, there are rare instances where these applications support a business’ needs entirely. Bespoke software can make use of AI and ML in the exact way the insurer needs, enabling them to support their employees and customers in a more effective manner.
At Toolagen, we are experts in bespoke software solutions for claims management and investigation. If you want to know how we can support your business through bespoke software solutions contact us here. We want to use our breadth of knowledge and experience to turn your vision into reality.