On-demand insurance enables consumers to purchase insurance cover anytime and anywhere on their smartphone, usually when the good they want to protect is used and at risk. Technical innovations in recent years have changed consumer expectations significantly. Now that companies are using technology as a means of instants fulfillment of orders for goods & services, on-demand insurance products are on the rises. An attractive user interface, customizable insurance coverage, & easy one-click buy add to the appeals of on-demand insurance for consumers.
The increasing reliance on smartphones, mobile apps, social media, and chatbots has affected both the insurance industry and consumers. Today’s consumers often expect the same customer experience when buying insurance as when buying from Amazon.
Insurers struggle to meet the demands of tech-savvy consumers
especially millennials, who are the largest generation of buyers. Millennials buy their policies more than twice as often as other generations online or on their smartphones than through an agent. The top insurance technology startups in the on-demand insurance space include those targeting millennials. Simple transactions with no completed paperwork on smartphones are common and consumers expect the same from insurance companies.
With on-demand insurance,
you can take out policies online without having to interact directly with a broker or company representative. Customers can take out insurance from their smartphones. Usually, there are no long-term contracts lengthy forms, and no talking to representatives on the phone, making insurance covers literally with a simple swipe on a smartphone. Premiums for these micro-permanent policies are paid in the app and claims are usually submitted via a mobile chat interface.
On-demand insurance is leveraging innovations like the Internet of Things (IoT), Artificial Intelligence (AI), predictive models, and big data that are helping to reinvent the way insurance products are created, drawn, valued, and sold.
One company that uses an on-demand insurance model is Trōv, which offers an application platform that is available to insurers for authorization. The cover can be switched on and off with a single “swipe”. The app also uses a chatbot to automate the claims process. Inc. is an on-demand homeowner, tenant, and small business owner insurance company. Slice has also partnered with AXA XL to offer on-demand cyber insurance for small and medium-sized businesses.
In the healthcare sector,
[Bind Benefits offers an “on-demand” model that enables consumers to design their own health insurance coverage based on their current needs or life events. While Bind is not a health insurer, it aims to lower healthcare costs through its employers and self-insured health insurers that rely on United Healthcare’s networks.]