With ON-OFF insurance, peace of mind is just a click away

As we explained in a previous article, the 2020-2030 decade will transform the insurance industry. Although the pandemic accelerated the digitalization process for insurance, this is still an ongoing process that will continue into the future. There is also a need to analyze how the generations are changing over time, because existing insurance needs, and the best way of satisfying them, will keep changing too, as the generations that make up the population pyramid continue to evolve. In view of this, we might ask how insurance companies will be able to adapt to these new consumer habits?

We can emphasize two characteristics that are now affecting the insurance business in this context. On one hand, there is digitalization, which must be understood to include important aspects such as hyperdigitalization and hyperconnectivity, empowerment of the individual, personal data protection, environmental awareness and sustainability, the omnipresence of artificial intelligence, and hyperglobalization.

On the other hand, there is a consumer trend where generations such as the millennials tend to have fewer possessions, with a willingness to trade possession for access (something we see with streaming services such as Spotify and Netflix), while also consuming more shared services.

ON-OFF insurance has emerged as the perfect solution for the members of younger generations who are looking for a product adapted to their own needs and fast-paced lifestyles. This type of insurance is characterized by being on demand, and it can be easily activated and deactivated. Thanks to modern technology, this can now be done using a smartphone in a quick and intuitive way.

These days, how we purchase a product has become just as important as which product we purchase. By using intuitive apps and simple procedures, customers gain convenience and speed, which are clear advantages when it comes to contracting products of this type. 

The convenience of managing ON-OFF insurance using a mobile device has created a before and after in the world of insurance. This is an approach adapted to the realities of generations who are accustomed to handling important aspects of their lives remotely and with more independence, including those related to their purchases and finances.

With ON-OFF insurance, customers get to make their own decisions about how, when, where, and what to insure, based upon their own needs. The insurance policy can be activated and deactivated at the insured party’s convenience.  

The flexibility offered by this type of insurance allows for a high level of personalization, making it possible to insure goods such as cell phones, computers, and electronic scooters. However, this insurance modality can also be used with health insurance and motors insurance, to add supplementary coverage during specific time periods. Although this modality cannot be used with some types of insurance required by law, those policies can still be personalized in a convenient way. 

In addition to activating and deactivating the insurance, the insured parties can schedule when they want this to happen. This eliminates concerns about leaving the insurance “on” during a period of time when it is not actually needed.

For any insurance company, customer service continues to be one of the most important points in terms of establishing trust, and this is still true with ON-OFF insurance. It is essential to offer a variety of communication channels so that customers can receive immediate, effective service, whether this means online using chatbots, through social networks, by email, by telephone, or in person. This type of omnichannel approach, which allows for consistent, uninterrupted conversation, is undoubtedly a determining element when it comes to understanding the modern consumer.  

Although we can never be entirely sure about what the future will bring, we can be certain that we will continue to see new developments emerging in the upcoming years. Advances in the fields of artificial intelligence and data analytics will continue to transform not only the world of insurance, but the world around us in general.

This is why we are always researching new trends at MAPFRE, so we can give our customers the most innovative products in response to their actual day-to-day needs.

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