Much of the innovation in the insurance industry in recent years has been about creating new products that are delivered in old ways. Digital is the missing link. By combining the possibility of digital with the desire to innovate, insurers can create new revenue streams—serving new customers in areas that were previously inaccessible.
bcgdvFor example, let’s say a farmer in a developing nation could benefit from paying $3 per year for drought insurance that would pay out $100. The classic insurance models would not be able to serve him; it would cost more than $3 per year to collect his premium. But with fully automated microinsurance, the processing costs would be low enough for the carrier. It’s not just about cost, however. With digital innovation like this, carriers could have access to the next billion customers.
