Insurtech is increasingly proving to be a transformative strategy that almost all insurers across the globe are adopting. With insurers increasingly investing in insurance technology, they are looking to grow insurance penetration while catering adequately to the demand and supply gap. Especially in the emerging markets where insurance awareness is gaining widespread momentum. This is a strategic step towards increasing the demand for insurance in emerging markets and gaining a competitive advantage.
What Poses Challenge in Insurance Accessibility in Emerging Markets?
Before looking at the pivotal role of insurance technology in emerging markets to increase the accessibility of health insurance, it is important to shed light on the challenges that emerging markets face. Emerging markets are making strategic investments in technology and proactively taking measures to cater to dynamic market shifts. However, one crucial challenge that is pressing the insurance sector of the emerging markets is adequate insurance coverage to the entire population. Factors such as regulatory barriers, lack of awareness, financial stability, and outdated distribution channels are contributing to this gap in insurance coverage.
How is Insurtech Helping in Increasing Insurance Accessibility?
The key enabler of increasing insurance accessibility is digital transformation. While digital transformation is changing the insurance landscape in emerging markets, it is enabling insurers to take a fresh approach to increasing insurance accessibility.
Here are the keyways how Insurtech is helping to increase insurance accessibility:
Customized Solutions for Varied Needs
Insurers in emerging markets are going beyond the one-size-fits-all approach and are looking to offer tailored insurance technology solutions for varied needs. These unique needs include micro-insurance for low-income households, weather-based insurance for farmers, and health insurance with flexible terms among others, these are some of the unique needs that Insurtech is increasingly helping the insurers to cater to. The insurers can cater to these demands by enabling Insurtech firms to address these specific challenges that are faced by the local communities.
Mobile Technology
Mobile-first technology is enabling insurers to customize their offering as a mobile-first platform so that the population can streamline their processes and also increasingly access the services anytime and anywhere. In many emerging countries, a larger part of the population owns smartphones, and the Insurtech firms in collaboration with insurers can capitalize on connectivity to reach the previously deserved communities.
Insurtech Collaborations
Collaboration is a key strategy for Insurtech firms who are looking to penetrate into emerging markets and increase insurance accessibility. With strategic partnerships with financial institutions, the Insurtech firms can offer insurers solutions that seamlessly integrate into their existing systems. This makes the solutions more accessible and contributes to an increase in insurance accessibility.
Helps in Addressing the Cultural Nuances
Cultural nuances are playing a pivotal role in the success of Insurtech ventures in emerging markets. Many successful startups are investing money and resources to understand the local cultures and adapting to their products accordingly. This is a great approach towards building trust among the users and this ensures that the insurance solutions align with the values and the expectations of the communities which they are serving.
Conclusion
As the Insurtech landscape in global Insurance matures and expands its accessibility with customer-centric and modular solutions, there is heightened scope for increasing Insurance accessibility. Additionally, as global insurers continue adapting to technological solutions to better serve their customers, they will be able to further increase the chances of insurance accessibility and thereby contribute to increasing insurance penetration and insurance density.
