October 27, 2016
The Uberization of Insurance
The integration of the gig economy is the next step in the business evolution of the traditional insurance sector.
Our nomination for word of the year is, by far, “uberization.”
This term is used to describe the growing deluge of companies that offer on-demand services from cars to homes to labor, and much more. Many commentators view this economic transformation as a revolution that will see our entire economy shift from one of consumption, to one of access.
And we think they’re correct.
The Rise of On-Demand
The key to an “uberized” economy is where on-demand services meet crowdsourced labor solutions. You see it everywhere. Even traditional businesses are learning new tricks from an avalanche of high-profile acquisitions. Whether it’s Expedia’s purchase of Homeaway, GM’s buyout of Sidecar or Ford’s investment in Lyft, this shift is becoming more undeniable.
On-Demand for Insurance
Now, on-demand services are coming to the insurance industry, the most risk-averse industry, by its very nature. The insurance industry has become more nimble–mostly out of necessity, but that’s a story for another day.
See also: How On-Demand Economy Can Prosper
Insurance carriers are learning quickly that they need to adapt to the demand of, well, on-demand services. And the integration of the gig economy is the next step in the business evolution of the traditional insurance sector.
Tough Questions for the Insurance Industry
What does the “uber of insurance” mean? What opportunities and challenges does it bring to the industry? The gig economy, sharing economy, 1099 economy, on-demand economy or whatever you want to call it isn’t going away, and consumer participation continues to grow.
Earners, consumers and the old guard of the supply chain are eager to find ways to diversify and optimize business solutions.
How do you satisfy the demand for on-demand data gathering? Claims handling and processing? How does the insurance industry gather the data it needs effectively, efficiently and accurately?
Uber, Lyft, and Airbnb have not only demonstrated that they fill a need in the marketplace, but often they do it better than the traditional options – as uncomfortable a thought as that may be for the old guard in the supply chain.
Can this model work for the insurance industry? It can, and this is how.
Hug Your Smartphone, Save a Tree
Mobile technology is your new best friend when it comes to data gathering for claims handling and processing. The insurance industry is traditionally paper-intensive. Paper is no longer a security blanket, but a wet blanket weighing down processes and impeding efficiency.
Candy Crush and Capturing Data
It’s easy to marvel at the innovation of smartphones from the most addictive apps to the most useful. I won’t get into my Candy Crush addiction; I’m seeking professional help.
The point is to make smartphones work for you and your business processes. Today, smartphones are essential to the daily lives of most of us, providing communication, connectivity, schedules, entertainment and even our wallets. Think about how you can leverage people’s familiarity and affinity for their smartphones by merging it with your smart application development and deployment.
Capturing data has never been easier than point and click…Oops, I mean a finger swipe.
Now more than ever data can be captured, optimized and automatically entered into your data systems and processes. This new process can facilitate the seamless flow of data into business processes without risking it getting stuck to the bottom of someone’s shoe, misfiled, misplaced or eaten by the proverbial dog.
For the notepad next to your computer: seamless data integration at the point of data capture.
It sounds like a dream, doesn’t it?
Sharing Is Caring
First referred to as the sharing economy or the gig economy, the “uberization” of the workforce didn’t originate with Uber. But I’m still voting for “uberization” for word of the year. Merriam-Webster is next on my contact list.
People have always done odd jobs that fit their skill set, hobby, or need. Uber, Turo, Airbnb and WeGoLook through mobile technology have taken this tried-and-true individual entrepreneurship spirit not only to the next level, but to a measurable impact on the economy. Just consider recent sharing economy industry projections made by PwC. I won’t spoil it for you, but you’ll soon be acquainted with the word “mega trend.”
See also: Uber’s Thinking Can Reinvent the Agent
Crowdsourced labor solutions not only provide diversified earning opportunities, but they also provide options to workers, consumers and businesses alike. Remember our talk about being nimble?
All parties can scale up or down as they choose. They can also select where and how they participate in the gig economy and leverage it to provide for their financial or business goals.
As these on-demand solutions grow, expand and diversify, companies and consumers will have the opportunity to test and identify the best solutions for them, all with a swipe of their smartphone.
Free Market for Solutions
Some will argue the gig economy is the free market at its best, others will argue it’s at its worst. Like anything, it comes back to how individuals and companies strategically apply these solutions to their business challenges.
In the insurance industry, data gathering and claims processing will always resolve around how you can do it faster and better and with fewer mistakes. As the saying goes, “time is money.”
With the help of technology, the reach of smartphones and crowd labor — insurance companies can standardize and streamline data gathering, claims processing and other simple tasks while controlling costs.
For instance, why dispatch an employee across the metro, county, state or even country, incurring all the related expenses, time delays to gather data and take pictures when you can dispatch someone who’s already there?
Not only do you save time travel, and employee productivity, but thanks to the near-universal familiarity with smartphones and standardized mobile apps, you don’t have to train workers.
What if there was an Uber of Insurance? It’s not really a matter of “if” anymore, but of “when” and “how.” The when is now, and the how is through the growing relevance of the insurtech disruption.