For Click2Sure, the problem to solve in 2016, was the distribution of an insurance product online, at checkout. Enabling the consumer to attach insurance at checkout in one simple step. Their E-commerce partners already had the consumer’s data, all the consumer had to do was click yes or no to cover their device.
For the last three years Click2Sure distributed and managed their book of business end-to-end with a platform they built themselves from the ground up. This experience provided in-depth understanding of the complexities and challenges insurers face in terms of high operating costs, changing needs of the consumer, regulatory adjustments, and claims and complaints settlement. Moreover they learned of the meta problems to solve.
The distribution of insurance products is still very stuck in the last century. Consumers still complete extensive insurance forms in stores and online, and then brokers call them back. A process that can take hours, when the digital native’s primary needs are hyper-personalisation and hyper-convenience. They want real time interaction, and personalised products specific to their lifestyle.
In an era where rich consumer data is ubiquitous, machine learning through the use of structured and unstructured data sources, can enable insurers to price new markets and risk classes, based for instance on the behavioural profile and geospatial elements of consumers, real time. Click2Sure is advancing this capability, and henceforth saving time for their partners with more efficient processing and saving time for their partners’ customers.
Another problem with distribution weighs in in terms of the accessibility. Click2Sure partnered with one of the largest African retailers to make insurance available in their lower LSM channels.
This approach works for the retailer, who now has data in digital format, which allows better decision making. Secondly the retailer is able to pass the savings made through the administration process improvement using the C2S platform to their consumers. This works for the consumer who did not previously have access to affordable insurance, like funeral cover or an extended warranty on a device. Secondly, it works for the consumer as the distribution mechanism like a QR code or a USSD short code, instore can be used to buy insurance in a few simple steps.
Productivity is the 2nd meta problem Click2Sure came to understand. In insurance underwriting and administration, are traditionally very laboured processes. In Africa, insurers expense ratios are on average 70% and claims 30%. Compared to other sectors, the Insurance sector has not yet structurally addressed operating costs. Now, some Insurers are slowly realising the need to simplify and digitise their businesses, by alleviating the customers’ pain points, providing simple products, and providing a seamless customer experience across all touch points, in real time.
Increased underwriting efficiency and effectiveness of 3% can be the differentiator that sets a business up for higher economic profit. This can be done using Big Data and advanced analytics that assist in improving risk selection and pricing sophistication. Since insurers don’t invest time and resources into data curation, and they sit with large amounts of unstructured claims data. Claims ratios can improve through a contained digital ecosystem that helps the business streamline administration processes, using these large amounts of data.
Click2Sure is such a ‘contained digital ecosystem’. It is not an insurer. Instead they power insurance operations for others in one consolidated solution. They are an Insurtech-as-a-service; enabling other insurers to select pre-built elements of the insurance value chain, for a monthly subscription.
Click2Sure CEO, Daniel Gausco, recently spoke to COVER’s Tony van Niekerk, about the imminent PPR deadline, and the core components the Click2Sure platform offers clients in terms of distribution, administration and reporting. Listen to the podcast here: https://www.cover.co.za/tough-times-ahead-for-insurers-as-they-race-to-comply-with-latest-regulations/
You can hear more about Click2Sure and their Insurance PAAS from Daniel at the upcoming Insurtech Rising International in Paris on 9 October 2019 at https://finance.knect365.com/insurtech/speakers/daniel-guasco-2