5 Challenges to Sell Commercial Insurance Products
Published on 22 de September de 2022
In a post-pandemic and recession scenario, the insurance industry is under intense pressure to prove itself accountable. As a result, commercial lines insurers and their innovation teams face unprecedented challenges to sell insurance products.
In this article, we discuss five key risks for any insurance company that wants to sell nowadays. Keep reading!
Face sharp competition in the market
When a new insurance product is launched, it faces stiff competition from established and new players in the industry. This happens due to several factors, such as the newness of the product offering, lack of awareness of the product benefits, or lack of trust.
Insurance companies need to work harder to demonstrate they are different from their competitors and underline their own benefits. One option is to invest more in technologies that bring commercial lines competitive advantages to stand out among the rest.
Complicated insurance products
Many commercial insurance companies try to meet the needs of diverse customers by offering a wide range of products. However, the level of complication of the offering can lead to confusion.
Instead of offering a wide range of diverse products, it is better to get specialized in the needs of the clients by customizing them through technologies such as AI.
Outdated data to support decisions
In most insurance marketplaces, including the UK and Europe, consumers must provide certain information at the moment of making a purchase. However, after this, keeping the information updated can be challenging for insurers, especially during turbulent market conditions.
As a result, some insurers end up working with inaccurate information, which can lead to customer dissatisfaction. However, the good news is that nowadays solutions are working on this already. For example, InurTechs help insurers to update their clients’ information to base their decisions on the current data, and even in real-time.
Barriers implementing change
The insurance industry has been relatively slower than other sectors in implementing digitalization. Changes in the way insurance are bought and sold, as well as changes in regulatory environments, have had a significant impact on insurers’ ability to operate.
The adoption of new technologies such as AI or Open Data creates new opportunities for insurers to grow their business.
Incorporating technology into insurance processes
New technologies powered risk assessments and improved the efficiency and effectiveness of insurance businesses. However, implementing these technologies can prove difficult when it comes to the regulatory environments of the marketplaces they operate on. Therefore, most of the time, it is simpler for the insurers to contract an InsurTech solution that is already operating in their areas.
As the insurance industry works to respond to the myriad of challenges it will face in the coming years, it will require InsurTech players to collaborate more deeply, especially in terms of new technologies.
The success of any insurance company will depend on how well it can integrate the right technologies, such as those mentioned above, into its business processes. Insurers will have to cooperate more with tech companies and compete less like traditional insurers.
To overcome these challenges, solutions such as Wenalyze are here to help. Get in touch with us if you would like to know more about how to overcome the challenges to sell insurance nowadays.
