The insurance industry is adapting to disruptive technology that is transforming traditional practices and creating new ways for customers to access insurance coverage at little cost. Cloud computing, telematics, software applications, and chatbots are being utilized by insurtech companies to create innovative products in the insurance marketplace. Peer-to-peer insurance platforms have lowered the cost of insurance by bringing a pool of friends and acquaintances together who take responsibility for each other’s claims. Telematics tools like the black box have made it possible for policyholder to pay for only the miles that they cover. Insurance dashboards have provided a transparent means by which the insured can access their coverage and file claims only using the mobile tool. Another innovative insurtech product gaining traction in the insurance sector is the digital insurance concierge.
Traditionally, a policyholder with various forms of insurance coverage only deals with the insurer providing that coverage. An insured with an auto coverage with one insurance company and a health insurance coverage with a different insurance company will have to deal with both companies separately. The digital insurance concierge, however, converges both coverages under one dashboard for the insured to access and manage. This provides convenience for the user, which is one of the drives for technologically disruptive products.
With a digital insurance concierge, a policyholder with multiple coverages under different insurers not only can manage his policies under one umbrella, but can also see where he has duplicate or missing coverage. An auto insurance policy which includes coverage for when a home fire destroys the car when parked in the home garage can be flagged as a duplicate provision if the policyholder’s home insurance policy also provides coverage for all assets damaged in a home fire. The concierge app which analyzes a users’ policies in-depth, is therefore able to save the user unnecessary premium costs paid to insurers annually.
A digital insurance concierge is able to determine whether a user is appropriately covered. By analyzing the different policies on the dashboard, the concierge can alert the user on the need to buy more coverage provided by an insurer or to get rid of an unnecessary money gobbling coverage. For instance, a home owner in New Orleans who has a basic home insurance coverage that covers only theft will be notified by the digital concierge to include flood insurance as he or she will be deemed to be currently under-insured. Likewise, an auto coverage which includes a natural disaster like a volcano eruption for a policyholder who lives in Maryland will be flagged as over-insurance. Brolly, an insurance concierge app, uses artificial intelligence to evaluate whether a user is under- or over-insured and whether there is a better-priced coverage in the market.
Some digital concierge platforms give the users the ability to include information about their acquired assets such as a car, cabin, boat, jewelry, antique furniture, artworks, etc. A digital concierge app called Trov allows its users to organize all this information in the cloud. Using Trov, users can scout which insurance coverage is available for each of their assets based on the current market value of these assets. This way, an insured can select the right insurance for his needs and the insurer has better information on the value of assets to be able to price the coverage appropriately. Trov is an on-demand insurance concierge that provides its users with a unique feature that allows them to activate, re-activate, and deactivate insurance as needed.