Sustained economic development, rising interest rates, and investment growth in the Canadian and U.S. markets have resulted in bolstering local insurance companies. In the last two years, insurance companies have looked towards technology to offer a great range of insurance products. The implementation of block-chain and cloud-based technology is also likely to improve the safety of the consumer’s personal data.
Time for a Change
Recent statistics indicate that an increasing number of consumers prefer automatic insurance for their products. For insurance companies, it’s an opportunity to market their products to the corporate sector and large retailers. Offering insurance for individual products and services is the future of the insurance landscape, in 2019 and beyond. Getting insurance for single items such as cameras, digital devices, and other gadgets is attractive to consumers. It means that consumers are more likely to find insurance for almost any time of the product, in the near future.
Similarly, insurance providers are trying to adopt flexible insurance policies that can be accessed and changed, online. Insurance policy such as Pay-as-you-go is just one example of the sweeping changes in the insurance sector. The use of technology has also enabled individuals with pre-existing medical conditions to buy products such as travel insurance. In the past, legacy insurers were reluctant to provide such niche due to the complexities involved in the process.
By understanding insurance companies in 2019, stakeholders can take advantage of myriad options available to them from product development to service enhancement. As Canadian home insurance companies look towards consumer-oriented insurance, they are feeling the pressure to design policies that are easier to understand and buy.
In this modern insurance landscape, consumers are gaining an upper-hand. The EU legislation and GDPR law allow consumers to protect their personal data and ask questions. They have the right to ask how their data is used. Accordingly, transfer and sharing of data with the European Union require Canadian and U.S. companies to inform consumers of such a transfer.
Already, several courts in North America have given consumers the right to be forgotten, which means anyone can ask their insurance provider to delete personal data. If block-chain is implemented, deletion of such data will become easier for insurance companies – ultimately giving more power to consumers. In fact, violations of personal data come with serious fines up to 4 percent of the company’s worldwide net sales.
To survive, insurance companies will need to empower their client. Offering digital products that can be changed online is just the beginning of innovation. They must also address regulatory and legal changes, which focus on data transparency and privacy issues. As consumers become more independent, innovation is the only mode of survival.