Digital transformation has always been a nadir of the insurance industry. Most established insurers have been operating for a hundred years, and legacy tech remains an anchor holding back innovation. However, in recent headlines, Admiral Group has announced it has brought its digital pet insurance product in-house with a new offering, powered by FintechOS’ high- productivity fintech infrastructure.
High-productivity fintech infrastructure allows for the rapid creation of digital financial products that are hyper- personalized to customer needs. These products can be embedded into any customer journey or platform, either via a third-party or internally. This infrastructure makes it easy for internal teams to launch digital projects without needing significant resources or specialized knowledge.
But, why is pet insurance being targeted by industry players, and why specifically digital
Assurance not Insurance
With this in mind, it’s no surprise that there’s been a 10% surge in the number of pet insurance products on the market, as insurers compete to enter the space. Market players from Revolut to Lemonade are rushing pet cover products to market in recent months. So, how can providers compete with innovative disruptors to get their share of this sector?
The key is tailored, personalised, digital insurance. Unlike other forms of property-based insurance, pet cover is arranged out of a sense of care. People want to safeguard their dogs as if they were family members, not as a replaceable asset. To persuade pet owners of the value of cover, insurers must show that they care about pets as much as their owners do, and they can only do this with flexible, tailored cover that adds value even between claims.
Take Lassie AB, for example. This Swedish pet insurtech recently raised EUR 2.34 million in seed money by offering an app that provided customised petcare advice. Those that read the advice and complete quizzes on their petcare habits earn discounts on their premiums. This kind of interactive service provides an important degree of personalisation that can only be offered through digital.
Bringing Pet Insurance Back Home
Seeing this potential of the market, Admiral wanted to bring its pet insurance offering back in-house. Yet, even such an innovative insurer as Admiral felt the pressure of a tight time-to-market constraint.
Pet insurance has different requirements to home or car, needing to align and embed with the veterinary care market, which could be expensive. Not to mention, any product Admiral releases has to meet the high standard of customer service the brand implies.
Best-Of-Breed Pet Insurance Solution, Fast
Considering the available options for creating a pet insurance offering, Admiral realised that there were ways to rapidly create innovative digital products that could be easily connected to any other system. Admiral was able to construct its own digital pet insurance product in just over six months using high-productivity fintech infrastructure, reaching its pet insurance go-live date with time to spare.
Not to mention, the completed solution had all of the features Admiral required to satisfy its high customer service standards while staying under budget. The completed product even included a Multi Pet option and will be embeddable with other Admiral products shortly.
This kind of technology platform functions as a digital glue that connects legacy insurance systems with the digital insurtech world, without the kind of rip-and-replace digital transformation that so often fails.
Without digital transformation, insurers are unable to enter the digital markets that are overtaking the industry. By 2040, the eldest members of Gen-Z – a generation that grew up with mobile phone technology – will be in their 40s, and insurers that don’t embrace digital options will find themselves locked out of the market. Yet, digital transformation is complicated and expensive. According to a BCG survey, 70% of companies fail at digital transformation and receive almost no return on their investment. As a result, the only way forward is to find a way to enter digital insurance markets without having to go through a full digital transformation. Thankfully, tools exist that allow you to do just that, and innovative insurers like Admiral are already embracing them.