A leading tech pioneer looking to address the problem of underinsurance says insurers are struggling to embrace emerging technologies such as InsurTech.
Neosurance co-founder and chief executive Andrea Silvello wrote in a blog post that customers want insurance coverage tailored to their needs.
He said customers are choosing value over price while demanding easy access to information from the insurer via the channel they prefer.
“Insurers don’t seem very able yet to take advantage of this opportunity, thus missing their chance to intercept the customers where they feel most at ease,” Mr Silvello said.
“The lack of a comprehensive vision when it comes to the channels used and the integration between them is inconceivable and represents a major handicap that customers surely perceive.”
Mr Silvello cited push mobile micro-insurance as a good example of InsurTech addressing the anti-selection issue currently troubling the micro-insurance space.
He said the potential of micro-insurance to revolutionise the insurance sales process is high.
“In addition, it could help reduce the protection gap in developed countries for several types of risks and it can be a way to target Millennials with limited financial education and low trust in traditional intermediaries,” Mr Silvello said.
In September last year, KPMG global head of fintech in insurance Martin Blake said there is an estimated $1 billion in underinsurance in the Australian market and InsurTech could help insurers adjust to customers’ changing circumstances in identifying appropriate levels of cover.
“Using data analytics provides businesses with an understanding of behavioural trends of their customers which can enable them to engage in moments of truth,” Mr Blake said.