Planning an Insurtech Startup? Understanding the Customer Mindset is the Key to Success, Say Veterans

Follow the mantra of 'Being Customer First and Thinking Digital'

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

The digital transformation within the insurance space has given birth to a new category of companies called insurtech startups. According to Tracxn, there over 142 insurtech startups in the country at present including unicorn Policy Bazaar along with several promising companies like Digit Insurance, Acko, Coverfox, Turtlemint, etc.

In the age of the internet of things, artificial intelligence, machine learning and other new age technologies, these start-ups are not just focusing aggregating products but also developing new products, streaming distribution and providing last-mile support to customers.

Considering the penetration level of the sector in the country is so poor, we at Entrepreneur India, decided to catch up with industry veterans on how these insurtech startups could leverage on this opportunity.

Unlearn Everything about Insurance

Insurance is one of the most complicated product and there is no ruling against this. From buying insurance to claim settlement, a customer is always in the dilemma on what is right process to go about it.

Hence, Mehmood Mansoori, Member of Executive Management and Group Head, HDFC ERGO suggests insurtechpreneur to forget everything they know about insurance and focus on the customer.

"Insurance is a complex product. When you try to develop a solution keeping insurance in mind, you always make complex products. Instead of focusing on insurance, focus on the customer mindset," he says while adding that, "When a consumer looks at insurance, all they want is ease of service or buying. The experience should be similar to buying from an e-commerce platform or transacting through a mobile wallet or watching content on OTT platforms."

According to Mansoori, the moment an entrepreneur masters this, he or she is likely to end up in a different customer journey as against its peers.

Digital is the Key

Most of the problem in the insurance sector can be solved with a digital outlook. Like every industry, today insurance is also waling in the same direction. Amartya Sen the famous Nobel laureate and economist is of an opinion that the insurance sector is not adapting to the changes the way it should.

So in order to make a lasting impact in the insurance industry, Manik Nangia Director & Chief Operations Officer, Max Life Insurance says it is important to follow the mantra of "Being Customer First and Thinking Digital'.

"Digital disruption has changed the way financial institutions and businesses across the board are interacting with customers. Generating awareness of the value of life insurance products sooner rather than later is vital but understanding the fact that when human interaction is desired, digital channels are preferred, and how these preferences are influenced by demographic factors is also necessary. Businesses that will be able to strike this differentiation accurately will succeed in the future," he noted.

Simply put, no matter what insurtech startups cannot afford to ignore customers and experiences.