Why are Bite-Sized Insurance Products all the rage?

PwC | Competing in a new age of insurance: How India is adopting emerging technologies | 2019

01 Changing Consumer Demography

The demand for bite-sized products is fueled in part by the millennial and Gen Z consumer enthusiasm. They view insurance differently, as their financial vulnerabilities have made the kind, and extent of coverage they need very important to them. Digital-savvy generations seek ease and convenient processes without complex documents, tardy processes, and periodic payments.

Boston Consulting Group-FICCI | Survey | October 2019

02 Increasing Customer Expectations

Customers’ expectations are getting set by digital-only offerings for their convenience and simplicity, leaving them disappointed if their insurance experience does not match their lifestyle and needs. Today’s task-rich and time-poor consumers now expect more than just round-the-clock access, competitive prices, and good quality in their products. Consumers across markets expect personalized high-touch service. Insurance by its very nature had remained a low-touch industry, and so only offerings with high-quality interactions can inspire loyalty.

03 Shifting Product Needs

Lesser number of customer touchpoints and increasing innovation in insurance product offerings has ushered non-insurance services, which are a natural extension of the core product. Ecosystem services not only build loyalty but also increase profits.

PwC | Competing in a new age of insurance: How India is adopting emerging technologies | 2019

04 Blurring of industry Boundaries

Businesses that once seemed disconnected are now fitting together seamlessly with unexpected synergies. Opportunities have arisen for insurers to reinvent customer relationships by providing an ecosystem of services beyond traditional products.

Oliver Wyman | Insurance: post Covid-19 digital partnership models | 2020

Insurance Market of the Future

The insurance market of the future is driven by technology and personalization, a hallmark of bite-sized products. A holistic view of customers for better interaction through the consolidation of customer information has the potential to drive deep insights into customer behavior. These insights ensure that interactions are personalized, relevant, and meaningful.

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