Traditional insurance companies are boosting their online presence as a move to tap the Millennials and Gen Z markets.
According to Insurance.com, buying insurance online is a popular method used by younger individuals ages 18 to 25 years old. Out of the 500 people surveyed, approximately 45 percent purchased car insurance on a mobile device; 59 percent of respondents went online to purchase health insurance; 54 percent got their renter insurance online, and 46 percent bought life insurance on a mobile device or computer.
Given these high numbers, insurance companies need to land on the scene and promise easier process.
“Consumers can buy insurance in a matter of seconds, on their smartphones, chatting to a chatbot. About a third of our claims are settled within about three or four seconds by a bot on your app,” said Lemonade insurance co-founder Daniel Screiber.
Tech-Centric Insurance Products
The use of sophisticated platforms helps insurers to reach out to a broader scope of consumers. Behind-the-scenes disruptors or tech startups, take advantage of technology to automate the insurance application and renewals. Companies like Indio, promises a ‘modern solution for application and renewal process’ that is fast, easy, and E&O free.
However, the human element in the insurance application process is also essential for most people. The sit-down talk and walking through options are two of the major reasons why consumers still go with traditional insurance applications.
Meanwhile, according to financial advisor Tyler Huck, insurers still need to modernize to catch on to the younger generation. In addition, Huck also cleared that even if the application is done online, there is still commission involved.
“A common misconception is that if you cut out the human element, you don’t have to pay a commission. That is not true,” said Huck.
The National Association of Insurance Commissioners recorded consumers paying $2.45 trillion in insurance premiums.