Modern insurance companies are using tech processes to offer personalized insurance packages - but what exactly is this about, and how do they use it? In this article, we'll take a look at what personalized products are and how insurance companies are using them to create more customized coverage for their customers.

When it comes to insurance, there is no one-size-fits-all solution. Just as every person is unique, so they are their insurance needs. That's why insurance companies that offer more customizable products will have a competitive advantage in the current market.

Personalization is undoubtedly one of the main expectations to be covered today, users value insurance that speaks to them. Through individualized communications, it’s possible to anticipate their needs through relevant recommendations (among others), and recognize them in the different channels (store, website, app, etc.). In addition, personalization is the spearhead of the creation of user experiences (CX), one of the most relevant topics in current marketing.

However, product customization in the industry is not trivial. It requires the assessment of experts to know the policy viability and profitability. In addition, customization can be almost infinite, giving rise to complex and not fully tailored products.

Working with traditional companies, you can adapt but not fit insurance that meets your specific needs and budget. This makes personalization, one of the biggest challenges in the industry presented here. Those insurance companies that know how to adapt to the specific needs of the client, will be able to offer coverage and more competitive prices

Technology has advanced to the point where insurance companies can now offer personalized insurance packages to their customers. This is made possible by the use of data analytics, which allows insurers to better understand the risks that their customers face. Besides, some clients want to be understood without asking for it. We call this anticipation, very common among consumers of Generation Z or Millennials

This is good news for consumers, as it means that they can now get insurance coverage that is tailored specifically for them. No longer do they have to worry about being over- or under-insured, as they can get precisely the right amount of coverage for their needs.

Of course, this new technology comes with a few caveats. For one, it is still relatively new, which means that not all insurers have adopted it yet. On the other hand, there is still a long way to go. The customizations just aren't specific enough in many cases. The technology used by many insurance companies is completely outdated to deal with this complexity and some insurance companies have not yet understood the value that this represents.

The moment a person feels that someone offers them the security that goes beyond standard coverages, that they really understand their fears, at that moment the customer will bet blindly on that insurance company.

Insurance products are too segmented. That requires knowledge on the part of the consumer that sometimes generates mistrust. Other times, that segmentation and little customization make the total set of coverages little sense, even making them duplicated.

People want to feel secure but also want to escape the current complexity of many insurance coverages. In an increasingly technology-driven society, communications across old channels are losing value. A user needs to understand, consult and contract specific coverage for specific times. Without having to rely on outdated channels like phone calls.

The new generations want to have control over the contracted products. Being able to activate and deactivate coverages when they think they need them (even if this means paying an extra fee).

Clearly, the fact of customizing a specific coverage level, for a certain moment, is something that is going to make us think of many coverages that had not been contemplated before, giving rise to complex product configurations that are very different from those that are now offered.

For all those reasons, cooperation with third parties is needed to offer a 360 customer experience. The insurance industry is no exception and is starting to explore ways to cooperate with other services. The synergies between industries are a reality that ends up benefiting the customer.

Some examples of this cooperation are open APIs like Vericred’s 

 API. It allows you to search for Health Plans that a specific doctor accepts. This includes medical plans, dental plans, vision plans, coverage, drugs, networks, and providers.

Nationwide Building Society ****is a British mutual financial institution, the seventh largest cooperative financial institution, and the largest building society in the world with over 16 million members. Nationwide offers a 

 from Automotive, to Pet Care, Retail, Business Services, Insurtechs and Fintechs, and much more.

Just a few examples of the importance of cooperation today. To facilitate this cooperation, insurance companies must be less hermetic, more technological, and be ready to adapt to the changing reality.

Some properties of insurance products are not necessarily subject to change. These are properties that have an impact on the final cost of the product and that are inherent to the product.

Parameters such as birthdate or the covered object will never change, they are what we call the core properties of the product, those that identify a product as unique. The added value consists in offering products open to change, products that are able to have extra properties that adapt to the user's needs.

Until now, a product could offer you, just fixed tiers, but many of the coverages will be useless. The worst part of it is to leave the customer with the feeling that he is paying for coverages that he does not need. The customer must be able to choose, based on their needs, how to expand their product at a given time and that is what will be configurable in the system.

Let's imagine a person who wants special coverage depending on where they travel since the risks will be different. That versatility is already possible, but not all insurers are able to offer it.

Insurance is made for the majority, but a huge market opens up for the big minority. Some very selected users, who we call early adopters, and are revolutionizing all industries. Users who will drive the industry in the next years.

Tailored Insurance Products

“If opportunity doesn’t knock, build a door.” ~ Milton Berle

In recent years, the insurance sector has been under pressure to become more customer-centric and technologically innovative. A key part of this has been the development and adoption of Insurance APIs, which allow third-party developers to build applications and services that work with data from the insurance company. In this article, we'll take a look at how Insurance APIs are transforming the insurance industry.

The insurance industry has been notoriously slow to adopt new technologies, but that might be changing. The more innovative insurance companies are now offering APIs (Application Programming Interfaces) to allow third-party developers and companies to access data and build applications on top of their platforms.

This is a big shift for an industry that has traditionally been very closed off. By opening up their APIs, insurers are hoping to tap into a wider ecosystem of developers and create new opportunities for innovation, and partnerships.

There are a few different ways that insurers are using APIs. Some are offering APIs as a way to offer data to third-party developers. Others are using APIs to power digital products and services that they offer directly to consumers. And some are doing both.

Offering data platforms is a way for insurers to monetize their core products and services. By giving developers access to data, they can create new products and services that can be sold back to consumers. This could include things like price comparison tools, personal finance advice, or even new insurance products.

Insurers are also using APIs to power digital products and services that they offer directly to consumers. This could include things like chatbots or digital assistants that help customers manage their policies

Traditional operations vs API transactions

In the world of insurance, there has always been a clear distinction between traditional transactions and APIs. Common insurance operations are things like policy renewals, claim submissions, and payments. These are the bread-and-butter of the insurance industry, and they have always been done through manual processes.

API transactions, on the other hand, are a relatively new phenomenon. They allow for the automatic exchange of data between different systems, and they hold the promise of making the insurance industry faster, more efficient, and more effective.

So far, API adoption in the insurance industry has been slow. This is partly due to the fact that insurers are risk-averse by nature, and they are hesitant to embrace new technologies that could disrupt their business model. But it is also due to the fact that most insurers have legacy systems that are not easily compatible with modern API standards.

That said, there are a few insurers who have been early adopters of APIs, and who have seen significant benefits as a result. These insurers have been able to streamline their operations, reduce costs, and improve customer satisfaction. It is only a matter of time before more and more insurers follow suit.

When it comes to APIs, there are a lot of options out there. So how do you know which ones are good and which ones aren’t?

Here are a few things to look for when evaluating APIs:

. A good API should be easy to use and understand. It should have clear and concise documentation that is easy to follow. Reading the docs you must have a 

 A good API should offer all the features you need for your project. It should also be flexible and allow for customizations.

 A good API should be reliable and offer uptime guarantees. It should also have a robust security system in place to protect your data.

 A good API should come with excellent support in case you run into any issues. The provider should be responsive and helpful in resolving any problems you may have.

When it comes to insurance policies, customers could feel like they're in the dark. Many people don't understand their policies. That's where Open APIs come in. Open APIs can help make insurance policies more transparent, so it makes it easier to understand what they're paying for and why.

Open APIs for insurance companies means that policyholders can have access to their data and information. This way, they can view their account details, check their policy status, and even file and track claims.

Having an Open API also allows third-party developers to create applications that work with the insurer’s data. This could include apps for filing claims or tracking payments.

If you are an insurance company, then you know that the claims process is critical to your business. It's also a complex process that involves many different stakeholders. That's why having a claims API can be very helpful.

A claims API can help streamline the claims process by providing a single interface for all stakeholders. This can make it easier to track and manage claims, as well as reduce the overall time it takes to resolve a claim.

In addition, a claims API can also provide valuable data that can be used to improve the claims process. By tracking how claims are handled, you can identify areas where the process can be improved. This data can also be used to assess the impact of changes to the claims process, such as new regulations or policies.

If you're looking to improve the efficiency of your claims process, an API for it can also help to automate several steps of a claim. There are companies that fully automated their claims process through AI.

Today, insurance companies are looking for ways to better understand their customers and tailor their products to fit their needs. To do this, they are increasingly turning to data and analytics.

One way that insurers are gathering data is through the use of pay-as-you-drive (PAYD) insurance programs. These programs charge customers based on how much they drive, rather than a fixed rate. This usage-based pricing model gives insurers a better understanding of each driver’s risk profile and allows them to offer more customized rates.

In order to participate in a PAYD program, customers must install a telematics device in their vehicle. This device tracks data such as mileage, driving habits, and location. The data is then transmitted to the insurer, who uses it to calculate the customer’s premium.

While PAYD programs offer many benefits to both insurers and customers, there are some challenges that need to be addressed. One challenge is that not all customers are willing to install a telematics device in their vehicle. Another challenge is that some insurers have been slow to adopt this pricing model.

Open API insurance policies are becoming increasingly popular as they offer a number of benefits for both the insurer and the insured.

For insurers, Open API policies offer a way to reach new customers and markets. They also provide a way to collect data about customer behavior and preferences. This data can be used to improve the insurer’s products and services.

For customers, Open API policies offer more choice and flexibility. They also provide clarity on the coverage and terms of the policy. And, they enable the customer to receive a more customized product thanks to the ability to share data with third-party apps and services, enabling them to find the best fit.

In recent years, the insurance sector has been under pressure to become more customer-centric and technologically innovative. A key part of this has been the development and adoption of open APIs.

Insurance-as-a-Service: How APIs Are Transforming The Insurance Industry

Today, new software development studios are based on selling measurable quality. This is due to the fact that the software has been professionalized and building a quality brand is closely linked to being recognized in the software market.

Development studios do not simply offer code, but also a relationship and a different way of working that make them unique within the consulting ecosystem.

A software studio can be a perfect match, and that's what hands-on managers appreciate. A development studio's ambition is to grow together with the client. Establishing a process where both have a close, sincere and trusting relationship.

Today is difficult to retain talent. Talent is possible because there is innovation, and exploration and that frequently means working on different products.

Outsourcing software projects can help organizations to use better their teams. By outsourcing, companies can dedicate their talent to their current domain knowledge while leaving the development of things beyond their knowledge to an experienced and reliable external partner. This can help to put the efforts into known tasks, bringing more value into their domains.

Working with a software studio tasks tend to be explicitly detailed, being that definition precise, and concise. This is because you always seek to be efficient in the definition and the solution, looking for the most efficient workflow. That's why, in a natural way, the system built has brilliant documentation.

A software studio can be a partner for more years than a person. The synergies and relationships established with companies go beyond people because they create systems.

One of the main advantages of outsourcing software projects is the quick time to market. When you outsource your project, you are able to take advantage of the expertise and experience of the company you are working with. This can help to speed up the development process and get your product to market faster, avoiding common pitfalls that could cause preventable delays or rewrites.

An external company can be an escape hatch from a bureaucratic environment that ends in eternal and painful releases. Our experience tells us that many processes are closely linked to a pre-established culture that is difficult to change internally.

The use of the latest technologies is one of the advantages of trusting a software studio. The service providers have access to a wide range of tools and technologies, which can be used to develop the project as per the client’s requirements. This way, the client can be assured that their project will be developed using the latest tools and technologies.

Besides, introducing new technology to a company is hard and difficult. Many employees are reluctant and innovation can cause friction. An external company can be a less aggressive step to introduce new technology in a more friendly way.

When you outsource your software project, you will be working with a team of experts who have likely worked on similar projects in the past. This gives you the opportunity to learn from their experience and get insights into how they approached the project. Additionally, you will be able to build relationships with other teams who can provide support and feedback during the development process.

Today outsourcing is a reliable alternative. In a highly competitive market, where talent is scarce, outsourcing and partnering can make a difference. This implies an open mindset, not only on the part of the company but also of the in-house software engineers to understand external companies as partners at a point in the road.

Outsourcing may not fit into some company cultures, but those that are naturally able to adapt and partner will have a huge competitive advantage over closed systems.

We build digital ecosytems for insurance.

Increase speed of delivery

Innovation against APIs and standards

Product Data Modelling Drived By Simplicity

product customization

Customize Your Insurance Products

Higher customer satisfaction

Recomended content

LETS START THE TRANSFORMATION

Ready to get started?Get in touch with us.