Mobile Apps: Game changer for the insurance industry
With the advent of the COVID-19 pandemic, the mobile industry has emerged as a lifeline, enabling many business activities to continue and numerous industries to transform successfully. The insurance sector is no exception.
Customers at the heart of (r)evolution
Empowered consumers expect more from businesses than ever before. We’re no longer compared to our peers but to whoever sets the benchmark for a great experience in our lives. If my airline can do this, why can’t you? If my grocery retailer can do this, why won’t you? Whoever is to credit for customers’ heightened definition of value and experience is here to stay. And ignoring it isn’t an option.
Owning a car doesn’t necessarily hold the allure it once did, particularly for the younger generations. Millennials, the world’s largest demographic cohort, have greater freedoms than any previous generation and are shunning the traditional path to car purchase and historical patterns of transport usage. Insurers are either going to adapt to their needs and expectations, or they’ll simply vanish from the market, says Marijan Mumdziev, CEO of Amodo, one of the top five insure-tech companies worldwide.
Advances in connectivity, data reliability, and the wide penetration of smartphones mean the traditional black box is no longer the only option for insurers and drivers seeking a fairer, more accurate approach to assessing risk and setting premiums. As smartphones in just a couple of years went from communication device to essential tool that helps us better understand (and regulate) our lifestyles, this opened insurance providers a huge opportunity to exploit technology that virtually everyone owned to reduce their costs, making user-based insurance (UBI) even more attractive to both providers and consumers.
Now, insurance providers can get even more insight into driver habits than ever before while reducing the costs of their policies and becoming even more competitive in the insurance Marketplace. What’s more, app-based smartphone telematics are creating an opportunity to lift the motor insurance sector out of the margin-eroding, price-focused situation that aggregators have helped to create; to change the conversation with drivers from price to value, from savings to safety.
The Amodo platform enables insurers to develop new products based on behavior and usage data. The platform collects data from smartphones and other connected devices to build holistic customer profiles, providing better insights into customer risk and customer product needs. Amodo’s technology and methodology are used by insurers around the world.
The full version of this article is available in the XPRIMM Motor Insurance Report.
Amodo is an insurtech company on a mission to disrupt the insurance industry. By turning users’ smartphones into powerful telematics sensors, Amodo Connected Insurance Platform enables insurers to deliver tailor-made products by gathering and contextualizing behavioral data. Over the past eight years, Amodo launched more than 40 different Connected Insurance Products worldwide, with some of the leading companies such as AIG, Porsche Insurance, BNP Paribas Cardif Insurance, UNIQA, and many others. Amodo was named by Financial Times as one of the top 5 Insurtech companies globally, is a winner of a prestigious Digital Insurance Agenda Diamond Award in 2020, and has been named by Frost and Sullivan as the Best Practice Leader in the Usage-Based Insurance market in 2021.