While many industries have thrived in the digital age, one sector that continues to face challenges is insurance. The insurance industry has been slower to adapt to digitization, still too often relying on outdated risk and underwriting models.
Additionally, providers often fail to deliver the smooth and elegant user experience that consumers have come to expect from big tech companies. As a result, customer service scores remain comparatively low as consumers are unsatisfied with the tediousness and friction of claim processing and other customer service functions.
Meeting the Needs of Consumers
Milkinside is on a mission to redefine insurance in the digital age, responding both to the needs of consumers and their vision of a beautiful and dynamic balance between technology and experience.
Over the past decade, customers have shown overwhelmingly that they are willing to embrace technology to share personal data for comfort and convenience. When it comes to insurance, they are willing to trade privacy for benefits in various forms:
- Lower insurance premiums
- Faster and more streamlined customer service
- Seamless and automated processes to add and remove coverages
- Holistic or universal coverage – bundling coverage across categories
Insurance and the Benefits of Wearable Technology
Milkinside is working to enhance the consumer experience by leveraging innovation in insurance design. One of the most important innovations is the use of data-driven inputs. In a world of wearables such as fitness and sleep trackers, insurance companies have the capacity to monitor consumer activity and location, allowing them to offer lower premiums and better, more personalized insurance products.
For example, consumers who use wearables such as Apple Watch, Fitbit, and Aura Ring to track their month-over-month improvements in health and fitness should be able to very easily share this data to lower premiums for comprehensive health and life insurance.
Some companies have emerged as data-driven leaders embracing this new paradigm. Beam Dental provides a Bluetooth-enabled smart toothbrush that measures a user’s brushing and flossing, rewarding those who regularly practice preventative care. There are possibilities for this type of metric-driven insurance policy across all industries – for example, companies could use maps and bicycle data to adjust life insurance premiums for riders choosing a less risky mountain biking route.
A Proactive Approach to Insurance
Overall, insurance exists to help consumers manage risk – and in the digital age, there are more effective ways to achieve this goal. Insurance should bring a measure of comfort, security, and peace to the consumer – the ideal experience makes policy-holders feel that everything is taken care of in the unfortunate times when they need it most .
As insurance companies adapt to changing technologies, they should also develop an experience that provides greater control for the customer. This means a simple and elegant set of actions that allow customers to:
- Connect personal data sources to measure behavior
- Measure the impact of their behavior on risk
- Understand the impact of risk-reducing behaviors on insurance premium
- Enjoy streamlined customer support interactions as a result of data sharing
These steps work together to create the ideal insurance experience for consumers, empowering them to not just rely on the insurance company to protect them – but to take action steps to protect themselves.
By leveraging connected devices, any activity can become an opportunity to provide corrective or proactive suggestions to lower risk and reduce premiums. A consumer who lowers their average driving speed, increases the number of hours they sleep each night, or takes daily walks to improve health and wellness, can use their data to lower their risk and insurance costs.
As digitization and data sharing becomes the industry norm, Milkinside foresees insurance experiences that become more seamless, intuitive, and helpful to policyholders. Using an elegant mobile platform can lead to faster claims processing and less room for fraud. And with fewer resources allocated to long, tedious processing tasks, insurance companies can provide more complete services – for example, immediate ride-sharing for a consumer involved in an automobile accident, or access to an Airbnb rental in the event of home or apartment damage.
Although insurance companies have been slower to adapt to the rapid shift in digitization, Milkinside sees many opportunities – and a bright future – ahead for the industry.
To learn more about Milkinside, please visit www.milkinside.com.