INSURANCE IS TOO COMPLICATED AN INDUSTRY TO THINK THAT MERELY SELLING LICENCES WILL LEAD TO SUCCESS IN SOFTWARE AND PRODUCT DEVELOPMENT .
INDUSTRY WATCH
INSURANCE IS TOO COMPLICATED AN INDUSTRY TO THINK THAT MERELY SELLING LICENCES WILL LEAD TO SUCCESS IN SOFTWARE AND PRODUCT DEVELOPMENT .
Insurtech , a blend of innovative technologies that is disrupting traditional insurance processes , is reshaping the insurance industry . The goals of insurtech businesses include offering personalised policies , streamlining claims processes , reducing costs , to name a few .
One study shows that 63 % of insurtech companies have a collaborative approach and focus on helping traditional insurers transition towards a more digital future , improved efficiencies and better customer experiences . These are key in today ’ s market . Customers get faster , more tailored and more affordable services . Insurers , in turn , become more efficient and competitive .
Driven by the rising demand for digital insurance solutions , there has been a steady rise in the number of insurtech startups in South Africa , but what does it take for these businesses to be successful ?
Insurtech ’ s leadership teams have learnt hard lessons in the process of launching a company and insurance products developed on it .
Sales can be difficult
Recognise that insurtech sales can be challenging . Merely having a product does not guarantee success . Defining the right product starts with choosing the right problem to solve , one that is worth paying money for , and that is wide enough to enable you to build a successful technology company .
Marketing matters
Planning your marketing is as vital as developing your product . Don ’ t just focus on building your product ; invest significant effort into strategizing promotion and marketing . As a start-up , your brand is fresh , but unfamiliar and not yet trusted .
One effective strategy is to collaborate with bigger , established brands to increase visibility and borrow credibility . Brand value plays a significant role in sales . An established brand can make sales and partnerships easier .
Adaptability is key
Flexibility in business models can lead to surprising successes . This is especially true if the initial approach is proving difficult to convey to potential customers . For instance , Root changed course from a direct-toconsumer approach with its original open banking solution to working solely with large enterprises that have existing consumer relationships .
These days , Root offers an insurtech platform following a purely business-to-business strategy , which has proven beneficial , and easier to export to other geographies , like the UK .
Root ’ s platform now helps insurers develop products , which are white-labelled by retailers , telcos and financial institutions . This model is proving useful for insurers across the world , allowing Root to expand beyond its initial success in South Africa and Mauritius .
Collaborate , do not compete
Instead of viewing big insurance companies as competitors , see them as potential collaborators . Not only is collaboration the most favourable option , but it is also the most productive . Up to 40 % of short-term and life insurers ’ expenses are spent on core processes and can be significantly reduced by digitisation .
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