Sales of Professional Indemnity insurance at Tapoly were up in April, suggesting that the current lockdown, brought about by the COVID-19 pandemic, hasn’t really dented the appetite for insurance by micro businesses, freelancers and the self-employed as was originally predicted.
Whether this trend is replicated across the industry, we’re not sure. But here are our thoughts on why we think sales have held up so well for us.
Be Flexible and Agile
We think the key reason is down to our tech powered agile model which drives the flexible nature of our products. These are undoubtedly the most uncertain times and, having built a business with a commitment to give more control and power to customers, we understand more than anyone how important it is to have that flexibility, particularly for freelancers and small businesses. At the very heart of our philosophy is our determination not to lock customers in to annual contracts. If they only need cover for a day, they can have it. If they want it for a year, that’s also available. And if they’re looking for insurance for a few months, that’s available too.
The current crisis has presented an opportunity to demonstrate how flexibility, agility and innovation puts insurtechs in a strong position to cope, showcasing why insurtechs are attractive investments and key partners to incumbents.
Be as Slick and Quick as you Can
As well as flexibility, in our experience customers like the insurance quote and buy process to be quick and simple. They don’t want to waste time answering what seems like endless pointless questions.
In its recent report KPMG highlighted customer satisfaction and retention as the number one trend. It is undoubtedly a very important key performance indicator and could mean that traditional insurers may need to change their business models as well as culture by shifting their focus from product to customers and customer experience/journey, to achieve this. On our platform we’ve stripped the questions back to the bare bones, reducing purchase time from start to finish to just 60 seconds.
Be Collaborative
According to market commentators, the insurance industry is expected to be transformed in as few as 3 or 4 years. This makes a strong case for the need to be a digitally focused, customer orientated business. Some traditional insurers have come to realise that building the tech in-house is a costly and time consuming task. This is where a partnership with an insurtech can add real value by helping to achieve this.
Our own successful collaborations with a number of well-established insurers and brokers are prime examples of how strong and valuable propositions can be built and the potential that an ecosystem can unlock. We have insurers who have opened up capacity to us; we have brokers who have used our “plug and play” technology to distribute our on demand insurance to broaden their offer to their own customer base and operate at a micro-level with efficiency and profitably.
Be Open to New Technology
We live in an increasingly digitalised world, and data has become the Holy Grail, but when it comes to recognising and harnessing the benefits afforded by new technology, the insurance industry is massively lagging behind other sectors. There is a need for change to align with rapidly changing customer behaviour and market needs.
For example, applying technologies such as AI and machine learning for price optimisation, underwriting and customer acquisition, along with introducing a chatbot for customer services, could prove key to achieving efficiency across the value chain. We have successfully delivered all of these capabilities via our Software as a Service offering.
Opening up to new technologies opens doors to a plethora of benefits such as:
- End-to-end customised workflow via customisable products
- Pricing and workflows coupled with an easy and configurable interface
- On-demand insurance enabling usage/contract based cover with granular pricing by the hour, day, year or anything in between
- An omni-channel platform that can handle multiple product offerings in different countries and across various channels
- CRM capability that includes email automation, commission management, and broker quoting.
To find out more about our products and services email us at info@tapoly.com or call us on 020 7846 0108.