Q&A with Ashish Dudani

Ashish Dudani is a Property & Casualty Senior Executive with global experience in the industry in Asia Pacific, North America and other developed countries. After spending 12 years working for large insurers such as Generali and AIG where he built teams and new distribution channels, Ashish decided to enter the technology world and lead KiwiTech’s insurance vertical.

I had the chance to sit down with Ashish and talk about insurance, insurtech and technology.

Avi: Talk to us a bit about KiwiTech.

Ashish: KiwiTech is a startup accelerator and technology services company. We help emerging entrepreneurs and established brands turn their big ideas into products. Both young companies and older ones face challenges when it comes to building technology solutions. This is where we come in, helping them ideate and create products to meet the needs of digital consumers.

Avi: The insurance industry – which is known to be traditional – has been embracing technology in the past few years. What has changed?

Ashish: There are two answers to this question. For starters, modern consumers expect to interact with brands online and insurers are looking to add this capability. For decades they’ve been offering their products offline through agents or over the phone so this is a natural evolution as they look to meet consumers in a digital environment. The other reason why insurers are embracing technology is new competition. In the past five years we’ve seen a rise in new startups that are entering the space while offering a seamless digital experience.

Avi: When talking about technology, disruption comes up and experts often refer to Kodak as an example of a company that went from glory to bankruptcy. Will insurance have a Kodak moment?

Ashish: From a product standpoint the answer is no. When Apple introduced the first iPhone, camera sales started to decline. The camera went from a standalone product where Kodak was a leader to a feature in a device that offers different features and enjoys daily usage. I don’t see this happen to the insurance product as it will always remain the same – a contract to protect people against potential risk. However, from a business standpoint I believe disruption will affect many insurance companies, especially the smaller ones, as they will have a harder time to compete with stronger players.

Avi: What do digital consumers expect of an insurance company today?

Ashish: When it comes to the buying, I believe people who start the process online would like to complete it online. We often see cases where consumers start the quoting process online and are later required to talk to agent on the phone. This is not a good experience and companies risk losing the customer. For the claims side, I believe there has to be a mix of technology and human touch. If we can expedite the process by using technology then it is a win-win for both parties. But obviously filing a claim is a sensitive matter and some consumers expect a human interaction to provide guidance throughout the process.

Avi: We’re seeing more and more companies from outside the industry enter insurance. Automakers are including insurance as part of their subscription programs, Expedia offers travel insurance at checkout, and digital banks offer different insurance products. How do you see insurance distribution in the future?

Ashish: This is a very interesting development. Historically, insurance companies would be creative with their offline partnerships. They would partner with banks, travel agencies and dealerships, but having great offline partnerships doesn’t guarantee online ones. To partner with digital platforms insurers must be able to deliver a complete digital experience and that requires a technology investment. However, this is a necessary investment as these digital players are powerful distributors and insurance companies cannot ignore this channel. We’re already seeing insurance companies partner with different digital players and I believe the future will be about identifying and partnering with the best ones before everyone else.

Avi: A significant number of insurance startups are attracting investors but they are struggling when it comes to distribution. Why haven’t we seen insurance success stories like Dollar Shave Club, Casper and Warby Parker?

Ashish: I believe it’s in the nature of the product. Insurance is not an exciting product people think about often. Aside from that, the high customer acquisition costs are making it difficult for insurance startups to acquire customers. This is why we’re seeing more and more startup develop an agency channel to be able to work with agents on distributing their products. At the end of the day insurance is a marathon, not a sprint, and it requires patience if you want to have a fighting chance.

Avi: Last question, where do you see the industry five years from now?

Ashish: In a better place. Technology will help insurance companies be more efficient and uncover new opportunities. I’m not saying that consumers will all of a sudden fall in love with their insurance companies, but companies will be able to offer customers better, customizable rates and an improved experience at times of claims. This is an exciting time and it’s great to be at a company that has a part in enabling this change.