Innovation in Insurance: A Student's Perspective
Updated: Nov 7, 2019
Innovation - a trending topic that is gaining traction in the insurance industry, Here are three takeaways from this past year's Drake Symposium.
Before coming to college, I had a basic understanding of insurance and how it affected society. However, I did not understand the complexities of the industry. Through majoring in actuarial science and finance while studying the industry, I have gained a further understanding of insurance.
However, most people do not have the opportunity and passion to study an insurance-related field, and don’t get an exposure to the different complexities. One of the prevalent themes I see in insurance is to simplify the customers experience.
One of the questions I face most often during interviews is to “explain an actuarial topic to someone with no prior experience”. I believe the insurance industry should ask themselves a similar question while designing new products with the consumer in mind.
Increasing Usage of Different Kinds of Data
We live in a world that has a tremendous amount of data about us, from our cellphones being able to track our location and speed to watches being able to track certain fitness metrics. For insurers to utilize this data, they must present it in a package that benefits the consumer.
Several products already use this data, and offer discounts based on your activity levels or driving methods. I foresee insurance utilizing more of this data in the future while balancing the benefits with privacy drawbacks. I believe insurance companies will run into and address this issue in the future.
Lastly, personalization has been an increasingly prevalent theme, not only in insurance, but the world. Music services curate playlists according to your taste, apps suggest restaurants based on your previous dining experiences, and social network platforms customize ads based on who you are and your previous interactions on the platform. This is all done at our fingertips, on our cellphones.
I believe that insurance will look towards personalizing an experience to better interact with the consumer. Being able to customize a user’s experience will lead to better customer satisfaction and increased willingness to try new products.