Hosts ranting about lack of innovation in insurance #shorts
"How much of a stress there is on, you know, discounting our motor insurance products. There’s too much of price-based communications across every insurer or broker that we can see. It is highly commoditized now, there’s really no differentiation beyond a point of, you know, here's a discount or there's a discount, you know…that sort of thing. So, I feel that we are moving towards a market or a breakdown in many ways which mature markets have experienced when they play only on discounts and price as the differentiation.
Absolutely, you're right. If you look at the case of UK, where now there's a completely commoditized product and people have forgotten that there are other parts of product proposition than just the price and we were just talking about how the price is hovering around the 1% mark, which seems to be very unsustainable from what we have seen in the past and it's quite possible that a number of these motor insurers will face pressure and there's a real lack of innovation, you know, you have not really seen usage based insurance or pay as you go insurance really taking off, although we have seen some examples of a Buy Now Pay Later which is really a payment innovation, not really a product innovation. In my conversations with potential customers and clients, they are consistently stressed about how do we get the best sort of discounts because there is an overall belief that customers only want a highly discounted price and that may be the case but then how sustainable is this whole pressure on the entire eco system? Not just the insurers but the general eco system itself! "
