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What is Think Insurtech?
19/12/2023
What is Think Insurtech?
Concept - Think Insurtech's concept started at a Broker visit in Paris September of 2018. The new EU Regulation, the Insurance Distribution Directive (IDD), was taking effect October 1st, 2018. This directive in addition to GDPR created an enormous challenge for EU based brokers to comply and unless they were fully digital- it was not possible to do so.
Pain point: Due to the SME nature and fragmentation of the intermediary (broker) industry, standardized tools and solutions were not widely available. Globally, a limited number of insurance franchise models exist. Brokers grow organically requiring resourcefulness. The same applies to MGU/MGA's up to large insurers; although they have greater resources there is a limited number of standardized tools and solutions on the market or developers available to create bespoke solutions. Most insurers are forced to implement in house developed systems and ad hoc solutions.
Although everyone understands the need to go digital – implementation is not easy.
Digital beginning: The foundation started with a broker representing over 35 IPMI insurers and providers. Given the extent of so many partners and scope of plans, it requires a highly efficient and structured process and method. To manage the process, Think Insurtech's CEO, Olivier Le Faouder, designed and built an integrated plan comparator system based on a CRM. The platform is hosted on a highly secure cloud for medical data. The entire process from the start was digital.
Evolution: The platforms evolution - designed, built, and refined over a series of years. The purpose is to streamline the brokerage operations, "win time" and to enhance the customer journey. Note, the system - built for a brokerage by a broker, using in-house and outsourced technical support, with 3rd party tools for best purpose and scalability. The investment and development cost over €1,000,000 over a series of years.
Process: Think Insurtech's platform manages individuals and groups, PMI and IPMI plans. Onboarding – the client fills in a webform (group census) that digitally collects client information, needs analysis, and confirms consent of using the data. Clients collected data transfers to a CRM that date marks all the information collected assuring GDPR compliance. A remote video conference call is started, the plans, pricing, and a detailed benefit breakdown (64 lines) side by side comparison with the use of an algorithm that matches the plans and benefits according to the insured's criteria. In minutes, multiple plans, premium, complete documentation, application forms - sent to the client directly along with a written recommendation - required by IDD. The CRM tracks, follow-ups, business won-lost, reason, commissions, renewals, churn and KPI's.
Pre and Post Covid: Brokers typically met with clients in person and prepared an offer. Today, contact is remote, plan comparisons are in real time. Changing plans and premiums is quick and easy using an algorithm instantaneously offers a distinct set of plans and pricing. Further modifications to price by introducing a deductible or co-pay or change in area of coverage. Being digital streamlines the operational process - freeing up more time to spend time servicing clients.
Compliance: All information collected is stored on a highly secured cloud for personal data. This assures the necessary steps to protect medical data, which is an enormous potential liability in case of a breach.
Productivity: Within the brokerage operation the CRM tracks sales, renewals, commissions, KPIs churn, and can drill down into every aspect of the sales reps' activities, marketing, and distribution functions in detail. The CRM also connects to the other API's and Third-Party applications, Panda Doc, Mail Chimp, Mail Gun, G-suite, Accounting. Think Insurtech's SaaS runs on an API, it can work with multiple CRM systems, Pipedrive, Sales Force, Hub Spot, Sugar, Zoho…
Value: As digital brokers are much more efficient, they fetch a higher valuation. Given the emerging trend of broker consolidations in the UK and USA, larger brokers are expanding via mergers and acquisitions. The trend has also started in the EU and is likely to accelerate.
Benefit: Being digital with a standard set of tools is faster to implement, reduces costs, easier to onboard and train; allowing an efficient transition to digital.
Summary: It has been increasingly difficult to work as an insurance broker given the fragmented nature of insurance distribution, existing regulations (GDPR and IDD), increased enforcement compliance, lack of tools and solutions, and necessity to secure data. Given the potential risk and enormity of regulators' fines it is "comply or die".
Think Insurtech offers a proven business model, a low-cost scalable digital platform via a (SaaS) Service as a Software. No matter your firm's size or level of technical ability, or stage in digitalization, Think Insurtech has a solution to assist.
For more information on the road to becoming digital, or to learn more about tools and services available in your journey please contact us.