Insurance startups – Coruscate Solutions

Insurance app development is a rising opportunity for startups, Lemonade raising $300 million is the proof

Ankit Virani — Fri, 12 Apr 2019 13:11:27 +0000

In today’s world of growing technology, severe competition and economic uncertainty are the two defining factors for the businesses. Each company wants to handle such businesses without compromising its customers. Technology comes in handy as such times. The insurance startup companies have integrated technology with their business by saying yes to insurance app development to provide them an edge over competitors. The insurance apps have also helped them to improve customer experience and satisfaction.

Why is there a huge scope for Insurance apps development?

The insurance startups claim to provide the best coverage against the unpredicted circumstances of life. The global insurance market premiums exceeded the US $4.9 trillion in 2017. This fact went unnoticed by the startups who are looking for a good business venture which can be extremely profitable.

Here is a chart to prove the facts of growth in the purchase of policies per human.

According to a study, the annual investments in insurance and technology have seemed to be doubled in the year 2018. The Fintech Global database suggests money invested in Insurtech startups has reached around $3.18 billion worldwide which is almost double of $1.65b billion which was invested in the year 2017.

» Lemonade Insurance app:

Lemonade is a certified insurance company and deals in property and casualty insurance for homeowners and renters. The company is disrupting the good old business model of insurance by adding technology and transparency into the industry. It was never before that such transparency was seen in the insurtech sector. The insurance experience that they are creating is fast, affordable and stress-free.

They do not gain anything through delaying or denying claims as they have introduced a flat fee for each transaction. So, they are into handling many pay claims instantly. They have this idea of treating the premiums as customer’s money that needs to be returned through ‘Giveback’, a unique feature that has been introduced through their insurance app. Each year, they donate the leftover money to various causes the customers care about.

The Lemonade insurance app has more than 100 million downloads and is available at Maryland, Michigan, New Jersey, Arkansas, Arizona, California, Connecticut, District Of Columbia, Georgia, Iowa, Illinois, Indiana, New Mexico, Nevada, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Wisconsin and is still expanding its branches.

Fundings and policies of Lemonade insurance app:

According to a news in Techcrunch, Lemonade has recently received a funding of $300 million and have sold over 500,000 policies till date.

The company has been a part of 6 funding rounds and has raised $480 millions of funding amount.

The app aims to replace the brokers and bureaucracy with machine learning, AI and chatbots. They have made purchasing policies hassle-free by promising zero paperwork. Here is a graph of traffic on the website and mobile app of Lemonade insurance app in the last 6 months.

Lemonade has actually turned the bitter lemon of insurance from being evil to doing social good.

Features of Lemonade app that you can consider while insurance app development

1. Live Policy

Lemonade has disrupted the insurance world by offering live insurance policy feature. The old insurance system had tedious contracts which were extremely long and not understandable by the common man. Also, it took a lot of time to go through those documents. But Lemonade’s live policy has been a lifesaver which gives the users a clear idea of what is covered in the policy. Unlike the tiring paperwork, the policy is a matter of a few clicks where the user just needs to scan the QR code and is good to go.

The user is allowed to do everything online like view their policies, make changes and file claims. The users are allowed to make edits and contributions to their policy right from their smartphones. The users can cancel or get the policy at a new address too.

2. Zero Everything:

The home insurance app for homeowners and renters provides another interesting feature Zero everything. They claim it to be like the undo button for real life. It’s a feature using which you can save deductibles without an increase in the price. The feature can be used twice a year. It is like a win-win situation for the customers.

No matter how high or low the value of the claim is, the Zero everything is a unique feature that allows the users to ‘undo’ losses for their stolen bikes to water damages due to burst pipes. With Zero everything the customers can claim the payments with no deductibles and no rate hikes.

Also, this feature can be activated once per policy and if there are more than 2 claims in one year, the third claim will have a $250 deductible and it will be counted towards possible rate hike upon renewal.

3. AI and Machine learning enabled chatbots

Ever felt the pain while finding the right kind of insurance? The AI-powered chatbot Maya of Lemonade app is a refreshing development in terms of insurance apps. Lemonade’s chat-based insurance flow works really well and feels non-intrusive and much interactive. The user doesn’t realize how many inputs they are providing as Maya makes it feel like smooth chat flow. The simplicity of the app is a result of this chatbot.

People prefer quick answers and want their jobs to be finished as early as possible. Automating the insurance policy system has made it easier for the policy seekers to find policies and manage them right on their smartphones. The chatbots actually run on Natural Language Processing and is a better way to provide enhanced customer experience than humans. The chat engine supports CXAI and answers the complicated questions for the policyholder and even edits and manages the policies for them.

4. Payment Integration

Insurance apps are all about the value of money. The payment plays a huge role when it comes to insurance policies. Providing a smooth and seamless payment structure for the users is the key to success. The safety and security of the user’s information also play an equally important role. So, being an insurance company, you need to be very careful while choosing the payment gateway for your insurance app.

Bottom Line:

We provide a complete solution for insurance app development right from research regarding the scope of the app to the features that can make your app unique. If you are a startup looking for a new business venture, the statistics of the insurance sector will surely strike the chord in you to explore the industry.

If you wish to dive deep into the insurtech, make sure you are powered with digitalization. Having an app with AI-powered bot can do wonders. If you are thinking about whether you should go for the MVP or develop a full-fledged app, please connect with us through the contact us form. We can help you with validating your ideas and fill you up with further information like the cost and opportunities for developing an insurance app.

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How the Influx of Technology (Mobile Apps) is Disrupting the Insurance Industry?

Ankit Virani — Thu, 11 Apr 2019 11:02:27 +0000

The net premiums written for the year 2017 in the United States of America was $1.2 Trillion. There has been an observed 12.7% increase in the net premiums written in 2018.

A look at the figures mentioned above, and you can guess that the insurance industry is the biggest industry, not just in terms of volume, but also in terms of the monetary valuation. While technology is invading almost all the industries, it has massively impacted the insurance industry. You can see the seamless customer experience and the personalized solutions that is being meted out by this industry owing to the customer-centric technology-based approach it has taken.

While a lot of insurers are not really sure how technology will benefit them, they know that it is the way forward, and have slowly started accepting the new move.

The traditional insurance companies have to adopt the new age technology, not only because it is necessary, but also because it is the only way they can offer risk-free approach to their clients.

In the recent times, most insurance companies are finding it difficult to innovate. One of the main aspects that needs to be innovated would be the way security, storage and data privacy are maintained in the insurance sector. Apart from that the new business models need to be devised for the insurance niche.

However, none of the traditional insurance companies can perform this task without the help of technology. It is important for the reinvent themselves into InsureTech for the sake of innovation and promptness in solutions.

Here we will look at the technology trends that are transforming the insurance industry, and how they are aiding the stakeholders at various levels. We will also look at some of the famous InsureTech startups that have evolved in the recent times.

Tech Trends Transforming Insurance Industry and why you need to development mobile app for your insurance business

Personalization of Insurance Products: You can see that personalization is quickly taking over the insurance industry, in an attempt to offer better solutions for the end user. Not every insurance solution available in the industry can help the user. In the traditional world, the insurance distribution costs were ranked high. However, the digital models will solve the issue by cutting down on the intermediary cost. You can get everything from flexi-insurance options as well as peer-to-peer insurance solutions. You will need to use the technology to create APIs that will help you get insights into insured and offer solutions that are aligned to their needs. An understanding of the customer will help you offer better experiences, and assess their risks in a better way.

Artificial Intelligence with a Hint of Automation: Yes, this trend is getting better by the day. You would have seen the influx of AI in most of the other industries. This technology not only helps you with customer-centric approaches, but also helps you determine the way forward. The AI algorithms will help with better data processing for the customers, thereby allowing you to get hold of improved solutions. The AI technology combined with bots and automation will help relieve the people of most of the tasks they are involved in. For instance, handling the claim management processes and connecting with the people on a one-on-one basis can be done using the bots. You can reduce some of the repetitive tasks with the help of bots and AI. You need to instill these algorithms into the web or mobile solution that you are planning to devise for the insurance technology solution. The idea is to accelerate the whole process, and eventually make space for better experience.

Wearable and IoT for Analytics: Real-time data will help the insurers offer quick solutions and analyze the situation better. It helps them make informed decisions. For instance, the property and casualty insurers need the real-time data to understand when a particular event happened, and how much the end user was affected, in order to be able to process the claims faster. The wearable technology combined with IoT algorithm can help the insurers get real-time data regarding the incident, which will help accelerate the mitigation of these issues. The other ways in which technology will help the insurance industry. Drones can help gather real-time information for remote properties and help them analyse the situation.

Augmented Reality: It is very important for the insurance industry to reduce the overall costs of not just acquiring the insurance, but also offering solutions and training the people or end users on how to use these solutions. The AR and VR technologies can aid the InsureTech companies in terms of gathering the data and also using the insights in the right way. If you want to offer product information to your users, what better way than showing them AR videos. It will help them understand in a realistic manner. The VR technology has been used to facilitate the self-driving tests for the end users, and it helps the insurance provider choose an insurance solution for the users. The VR technology can be similarly used in the other insurance solutions too such as property and casual insurance, healthcare insurance etc.

Top InsureTech App Ideas

With technology disrupting the industry, and mobile being the go-to tech for most users, it has become important for the insurance industry to devise a mobile app for their business. The first question, however, is what kind of app solution can you define for your target audience.

Here are a few app ideas that will help the business that you are in.

The Claim Adjuster Solution: The claim adjuster in any insurance industry is the one with maximum work outside the office. A mobile app solution would help them be more empowered and productive. Even when they are travelling, the app would help them know the situation and offer claim solutions that would ease the lives of the end users. From having the documents available while travelling to being able to access the latest information on the claims, the claim adjuster app solution offers it all. You will need to pick and choose features that will enhance the customer experience with your app

Support the Sales Team: The second app idea that you can initiate for your startup would be supporting the sales team by giving them access to the information, and capturing real-time information. When the sales meeting happens, the sales team would want information on the potential customer, and what they are expecting. The app would help them avail detailed information on the same. Secondly, the salesperson can access all the information and material that is needed to sell the product. Finally, when the lead information is made available to the salesperson, they should be easily able to feed the same into the system

Customer-Centric Solutions: The final idea is to devise a solution that is meant for the customers. For instance, if the customer has to submit their claim, the process should be simple. The mobile app should allow them to upload the claim, the related documents and make it easier for the end user. In case of property insurance or car insurance claim, the user should be able to upload the pictures of the damaged part along with the insurance details and other real-time details. You can even integrate AI based solutions into the mobile app to know what exactly happened, and at what time it occurred.

Startups that Redefined InsureTech

Everledger was formed with the aim of offering insurance solutions for the high value products, in order to prevent fraudulent attacks, mitigate risks involved in owning them, and accelerate claim processing. The company uses Blockchain, and Smart Contracts to track and manage the insurance claims and solutions HomeLyfe is the other startup that is earning quite a bit of fame in the InsureTEch niche. Till now there were third parties and multiple sales people involved in catering to the insurance policy solutions to the individuals.

However, this app has removed all the intermediaries. With their intuitive app, users can easily get access to comparison quotes, as well as purchase and manage the insurance policies. It is improving the way you invest in home insurance solutions Coverdrive is a marketplace for the insurers and the ones wanting to get insured. It helps the agents understand the kind of solution the user is looking for, and guarantee the same to them. It is more like a digital assistant for the insurance industry.

Summing up

There are many other startups that have redefined the insurance technology industry. With multiple features and a motive to make things easy for the end user, space is becoming competitive, inspiring more companies to tread this path.

If you are looking to be a new entrant in this space, and win over the competition, then you should connect with us right now. Email or call the Coruscate team, and we will help you with the apt solution for your needs.

Our experience in mobile and web application development, as well as an industry knowledge for the insurance niche, will help us give you the apt solutions. We can even help you devise the perfect app idea based on our understanding your business, its requirements and the end goals you aim to achieve.

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