Insurtech: How to Stand Out From Competition

The insurance industry is known to be notoriously resistant to technology, and to keep up with shifting demand, digitization is happening at all levels. Because of changes in how people feel and what they buy, insurtechs have a huge chance to grow faster than ever before.

Insurance companies have been doing the same thing for years, using the same systems, following the same processes, and getting the same results. 

InsurTechs are revolutionizing the insurance industry by using cutting-edge technologies such as big data, the Internet of Things, artificial intelligence, and targeted GTM models. These innovative companies are bringing fresh ideas to an industry that has traditionally been dominated by legacy incumbents. The insurtech market is set to reach $158.99 billion globally by 2030, with a growth rate of 32.7% from 2021.

In this competitive market and with the rate of customer turnover going up as a result of inflation, insurance companies need to step up their game if they want to retain their customers and stay in business. Now, more than ever, it's important to have a smooth user experience, help customers around the clock, and programs to keep customers coming back.

Here are the most effective strategies to stand out from competition in this rapidly changing industry:

1. Mapping competitors

Achieving success in business strategies begins with the foundational step of identifying competitors and comprehending their actions. By studying competitors and discerning their market positioning, businesses can uncover opportunities to stand out. This understanding forms the basis for competitor mapping, a crucial process in competitive market analysis.

 For instance, when launching a new product or service, competitor mapping aids in visualizing the interplay between variables like product price and perceived benefit. The diverse formats employed, including scatter graphs, comparison charts, bar graphs, line graphs, Gantt charts, and pie charts, serve various purposes such as identifying areas for improvement, presenting data effectively, capitalizing on competitor weaknesses, validating unique selling propositions (USP), and establishing benchmarks for future growth.

This approach also reveals unanticipated launch barriers, enhances insights into customer-competitor-product dynamics, identifies underserved market areas, and facilitates strategic market expansion. To construct a comprehensive competitor map, follow a structured process: identify competitors, determine areas requiring deeper analysis, select variables for tracking, visualize data, and highlight areas for improvement. This integrated approach ensures a seamless blend of competitor analysis and strategic planning to enhance overall business performance.

2. Following innovation

Over the past decade, InsurTech startups have attracted a significant $16.51 billion in investments, injecting innovation into an industry traditionally resistant to change. While initially perceived as a threat by many insurers, the current reality, as we ride the second wave of the InsurTech boom, is that most startups have emerged not to replace but to support incumbent carriers.

In the context of a globalized and dynamic economy, companies can proactively position themselves for success by staying attuned to changes and approaching everyday aspects with innovation. Establishing robust relationships with suppliers fosters camaraderie, enabling businesses to gain a competitive advantage through synchronized supply and assured quality.

Remaining vigilant about market trends and competition equips businesses with the knowledge needed to make strategic decisions. Understanding consumer preferences and assessing how competitors meet those needs empowers companies to leverage innovation strategically, gaining an edge in the ever-evolving business landscape.

3. Identifying target audience

The third strategy that you can adopt is identifying your target audience. In fact, reaching out to professionals currently immersed in the insurance sector proves instrumental in grasping the dynamics of the contemporary buyer, even for individuals with a wealth of industry experience preceding their foray into insurtech.

For executives navigating the insurtech landscape, understanding their potential customers is paramount. It involves deciphering not only their preferences but also their expectations and preferences. This comprehension becomes the bedrock for serving a diverse clientele effectively and carving a distinctive niche amid a sea of competitors.

Transitioning to the insurtech sector, where shared narratives are the norm, companies often find it challenging to stand out. Crafting messages that set a company apart is imperative, but it's undeniably easier said than done. This challenge is compounded by the fact that communicating differentiation in the insurtech industry is often rooted in the technology itself—a realm not intimately familiar to the target audience, including investors and traditional insurance sectors, who may be uninterested in the intricacies "under the hood."

Rather than fixating on the technical features of their offerings, insurtech companies should pivot to educating and engaging key audiences on the value and impact of their solutions—the tangible outcomes. What specific challenges do their innovations address? What insights would captivate prospective clients? By focusing on answering these questions, businesses can articulate the deeper meaning behind their work, positioning themselves to think big and transcend the technological intricacies.

4. Maintaining business value

The insurance industry is being fundamentally reshaped by tech-driven innovation. Telematics, artificial intelligence, machine learning, and automation have all made it easier. The insurance value chain has been changed by these technologies, and omnichannel solutions are always making the customer experience better.

Private equity investors are showing more interest in investing earlier, which will lead to a significant increase in the capital flowing into the market.

As a result, Insurtechs have a great opportunity to scale quickly and meet the demands of the market. Insurtechs have different strategies to grow their businesses, with some choosing to merge with incumbents and others focusing on scaling independently. There are various paths to accelerating growth depending on the type of insurtech player.

5. Using management software

One last effective strategy to ensure the success of your business is making use of proper management software. As highlighted in a recent report by BCG, the insurtech funding landscape has experienced a substantial surge due to the pandemic, reaching an unprecedented peak. The entire insurtech ecosystem saw a remarkable growth of approximately 35% in 2020. It's worth noting that a significant portion of the industry's market share is dedicated to the development of advanced policy management solutions. Here are the management software that Insurtech agents can use :

1. TLDCRM (Total Lead Domination CRM): a SaaS platform by Esotech, empowers insurance sales with VoIP and cloud solutions. Developed over 8 years, it now extends web automation services beyond insurance, aiding various businesses since 2013.

2. Majesco's P&C Intelligent Core Suite is a cloud platform for insurers, utilizing AI, machine learning, and automation to optimize operations and elevate customer experiences for growth and profitability. With pre-built content and best practices, it facilitates rapid and scalable insurance transformation in the digital marketplace.

3. Founded by Bill Atlee in 1995, iPipeline streamlines insurance with digital solutions, automating applications for financial security.

4. Accenture's ALIP provides cutting-edge insurance solutions, earning Gartner recognition for top-tier performance in 2021. As a leader in cloud-first solutions, ALIP enhances automation and fosters ecosystem partnerships for insurers, advancing digital agendas.

The bottom line

In navigating the insurtech journey, success lies in skillfully managing the intersection of technological advances and human needs amid evolving customer behavior and digitization demands. As competitive threats loom, insurers must not only break traditional silos but also undergo a fundamental shift in operations, embracing a transformative mindset to ensure survival in a dynamically changing economy. It's about reimagining value propositions for a radically different future, not merely dabbling in innovation but striving for innovative differentiation.