What Digital Entrepreneurs Should Know About Insurance

Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could run you out of business if you’re not protected with the right insurance. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. From print to digital, marketing has changed at faster clip in the last five years than during the previous 50.

Digital is the Key Most of the problem in the insurance sector can be solved with a digital outlook. Like every industry, today insurance is also waling in the same direction. Amartya Sen the. Successful entrepreneurs know that sometimes it’s important to take risks. Playing it safe almost never leads to success as a business owner. It’s not about taking just any risk, though. Understanding calculated risks that are more likely to pay off is an important part of being an entrepreneur. Perhaps one day, most or all entrepreneurial ventures will be ‘born digital’, and digital entrepreneurship as a separate topic will cease to exist. Today, however, there’s a real need to better prepare entrepreneurs for the digital world, and to give more people a new path to entrepreneurship.

Follow the mantra of 'Being Customer First and Thinking Digital'

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

What digital entrepreneurs should know about insurance company

The digital transformation within the insurance space has given birth to a new category of companies called insurtech startups. According to Tracxn, there over 142 insurtech startups in the country at present including unicorn Policy Bazaar along with several promising companies like Digit Insurance, Acko, Coverfox, Turtlemint, etc.

In the age of the internet of things, artificial intelligence, machine learning and other new age technologies, these start-ups are not just focusing aggregating products but also developing new products, streaming distribution and providing last-mile support to customers.

Considering the penetration level of the sector in the country is so poor, we at Entrepreneur India, decided to catch up with industry veterans on how these insurtech startups could leverage on this opportunity.

Unlearn Everything about Insurance

Insurance is one of the most complicated product and there is no ruling against this. From buying insurance to claim settlement, a customer is always in the dilemma on what is right process to go about it.

Hence, Mehmood Mansoori, Member of Executive Management and Group Head, HDFC ERGO suggests insurtechpreneur to forget everything they know about insurance and focus on the customer.

“Insurance is a complex product. When you try to develop a solution keeping insurance in mind, you always make complex products. Instead of focusing on insurance, focus on the customer mindset,” he says while adding that, “When a consumer looks at insurance, all they want is ease of service or buying. The experience should be similar to buying from an e-commerce platform or transacting through a mobile wallet or watching content on OTT platforms.”

According to Mansoori, the moment an entrepreneur masters this, he or she is likely to end up in a different customer journey as against its peers.

What digital entrepreneurs should know about insurance coverage

Digital is the Key

Most of the problem in the insurance sector can be solved with a digital outlook. Like every industry, today insurance is also waling in the same direction. Amartya Sen the famous Nobel laureate and economist is of an opinion that the insurance sector is not adapting to the changes the way it should.

So in order to make a lasting impact in the insurance industry, Manik Nangia Director & Chief Operations Officer, Max Life Insurance says it is important to follow the mantra of ‘Being Customer First and Thinking Digital’.

What Digital Entrepreneurs Should Know About Insurance Coverage

“Digital disruption has changed the way financial institutions and businesses across the board are interacting with customers. Generating awareness of the value of life insurance products sooner rather than later is vital but understanding the fact that when human interaction is desired, digital channels are preferred, and how these preferences are influenced by demographic factors is also necessary. Businesses that will be able to strike this differentiation accurately will succeed in the future,” he noted.

Simply put, no matter what insurtech startups cannot afford to ignore customers and experiences.

Publishing a book called Digital Entrepreneurship raises an obvious question: What is digital entrepreneurship?

Digital entrepreneurship is a term that describes how entrepreneurship will change, as business and society continue to be transformed by digital technology. Digital entrepreneurship highlights changes in entrepreneurial practice, theory, and education.

Digital entrepreneurship includes everything that is new and different about entrepreneurship in a digital world, including:

  • New ways of findingcustomers for entrepreneurial ventures.
  • New ways of designing andoffering products, and services.
  • New ways of generatingrevenue, and reducing cost.
  • New opportunities tocollaborate with platforms and partners.
  • New sources of opportunity,risk, and competitive advantage.
What Digital Entrepreneurs Should Know About Insurance

On a practical level, digital entrepreneurship opensup new possibilities for anyone thinking of becoming an entrepreneur. Some opportunitiesare more technical, but many others are within reach for anyone who learns the basicskills of digital entrepreneurship. These basic skills include finding newcustomers online, prototyping new business ideas, and improving business ideas basedon data.

What Digital Entrepreneurs Should Know About Insurance

Beyond learning new practical skills, digital entrepreneurship is also about new ways of thinking about entrepreneurship itself—which is another way of saying it offers new theories of entrepreneurship. Digital entrepreneurship opens up new questions about strategy, opportunity, and risk. Does the best data win? How can I craft a business idea that can be prototyped digitally? How can I improve my business idea faster than anyone else? How can I easily switch between different business ideas, and revenue sources? What does it mean to be a global business from the first day? And why do people from around the world keep trying to break into my business?

What Digital Entrepreneurs Should Know About Insurance Company

In terms of education, digital entrepreneurship opensnew possibilities to train the next generation of entrepreneurs. The best wayto learn entrepreneurship is to ‘do it’, and reflect on that experience.Starting a new business, or launching a new product, in the normal world iscostly and risky for beginners. The digital world not just lowers the barriersfor starting something new, but offers a variety of pathways to success. It’sjust a different world educationally from case studies, simulations, and businessplans.

What Digital Entrepreneurs Should Know About Insurance Companies

The exact definition of digital entrepreneurship is stillbeing debated, partly because it’s early days, and partly because it’s a movingtarget. As digital technology evolves, what is new about digitalentrepreneurship will change over time. Perhaps one day, most or allentrepreneurial ventures will be ‘born digital’, and digital entrepreneurshipas a separate topic will cease to exist. Today, however, there’s a real need tobetter prepare entrepreneurs for the digital world, and to give more people anew path to entrepreneurship.

What Digital Entrepreneurs Should Know About Insurance Policies

If you want to learn more about digital entrepreneurship,you’re in the right place.