Launching an insurtech brand? 5 steps to make sure you’re ready

Authored by Samar Kagalwalla, Head of Marketing and Growth, Onsurity

The insurtech boom is here. Emerging as a powerful driver of change in insurance, insurtech has taken the industry by storm over the last 5 years. After stepping into the world of digital, insurance companies have been constantly striving to innovate and disrupt the industry. 

According to Tracxn, insurtech has grabbed investor eyeballs with an overall funding of USD 14.3 billion in more than 900 companies. In India alone, this sector has over 2400 startups comprising companies that are engaged in providing software products and data solutions primarily designed for the insurance industry. From software companies to conventional insurers and intermediaries providing - underwriting and risk management, claims management, policy administration, regulatory compliance and corporate functions, the insurech market is heating up rightnow

The evolution of  insurance  over the past decade

Like most industries, the insurance industry has adapted itself to shifting market conditions. It is one of the oldest businesses of the modern world and much of it was run through brick and mortar business models until the 21st century. Today, automation has transformed tedious claim processes by simplifying them for a smarter future for insurers and customers. .  When the first wave of insurtech occured, traditional businesses started integrating digital technologies into their operations. However, it didn't show any favourable results to begin with.

But now new, technology savvy players entering the insurtech space are enabling a transformative shift by  offering a variety of digital solutions such as analytics and artificial intelligence. Digital  doesn’t just mean purchasing online. It also includes managing the end-to-end lifecycle of online customer management, analytics-based policy features, favourable benefits, seamless customer service and query resolution.  

Given its ability to assess the   complex  insurance and regulatory framework, building a brand in insurtech is an exciting opportunity right now. InsurTech has made it easier to procure, manage and understand insurance for common consumers. It’s high time for insurance companies- existing, new or those going through a rebranding or transformation to consider a multi-pronged approach to brand building if they want  to establish presence and scale up in a digital world. 

In recent times, digitization has been a growth driver for various niche-customer categories formerly excluded by traditional insurance companies. The same  can be said about group health insurance with substantial data supporting the claim. For example, earlier employers provided insurance that covered only the employee and certain specific circumstances of illness, accidents or death. With the advent of the new age group health offerings curated by insurtechs, companies can not only choose from an affordable range of packages, but also include covers for Covid-19, maternal health and several other diseases. Family covers are also increasingly becoming an important feature for employees.

Focus areas for building an insurtech brand 

How do you build an insurtech brand? You need to tick multiple checkboxes before getting started. Apart from a solid business proposition and a go-to-market strategy, you need to get a host of other things right:   

Trust - In insurance, trust builds business. Excellent customer service and fast claim processing will play a key role in gaining the trust of your first customers.

Cheaper premiums are not everything - With an imminent rise in premiums, group health insurance is set to become more expensive. Trying to onboard new customers offering cheap prices with hidden T&Cs will ultimately lead to unfavourable results. Avoid doing so at all costs.

Share meaningful content - Advertising is strictly regulated when it comes to selling insurance. Pay close attention to the brand’s messaging and quality of narrative. One miscommunication and it will backfire hard on the brand.

Interpersonal communication - Even through diversified distribution channels where agents may want to take ownership or credit for a customer relationship, an insurtech brand must ensure easy accessibility and customer interface at all levels - in person, remote and digital.

Data driven marketing - Understanding the audience and their needs will lead to creating thoughtful campaigns that will penetrate the clutter and resonate with potential consumers. Utilise the power of digital marketing and AI-based intuitive ad tools to create strong campaigns. 

Clearly, insurtech brands are becoming the new disruptive force shaking up the world of insurance. The key to building a successful brand is to focus on the ever-changing financial and insurance needs of users and continuously provide innovative digital solutions.