How can technology make the interactions of customers with insurance more efficient?
Insurance price comparison websites (PCWs) are a relatively new business, especially in the U.S., where regulations, limited online capabilities and resistance from incumbent insurers have been barriers to growth. The barriers are falling, however, and new players are beginning to transform the relationship between insurers and their customers. PCWs offer customers the ability to quickly compare price quotes and purchase insurance online. Customers have been able to comparison shop online for some time, but then they would have to close the deal with local agents. The new wave of startups bypasses the middleman.
As industry disruptors, PCWs can also provide innovative products. CoverHound, which launched in 2015 to sell homeowners, renters, auto, and small business insurance directly to customers online, found that more than 95 percent of all small businesses in the U.S. lacked cybersecurity coverage. Seeing a chance to develop an overlooked market, the company began offering cybersecurity insurance in 2016 through its CyberPolicy.com site, which provides small businesses with cybersecurity tools and cyber insurance policies in one bundled purchase, along with online educational content about how to create a cyber prevention plan.
Anita Sathe, chief strategy officer at CoverHound and CyberPolicy.com spoke with Oliver Wyman at InsureTech Connect 2017 about the company’s role as a disruptor and an agent of change for the better.