Younger consumers are choosing financial tech companies over traditional insurers
OLDWICK, N.J., March 21, 2016—This A.M.BestTV episode highlights a discussion with Indivar Khosla, senior vice president, Capgemini, who said his firm’s annual report titled, “World Insurance Report – 2016,” shows improving user experiences and opportunities in leveraging the internet of things in insurance technology.
However, he warns that younger consumers (Generation Y) are increasingly choosing financial technology companies over traditional insurers. Click here to view the entire program.
This year’s report focused on the customer service index and the digital world, which is disrupting the insurance markets.
“When it comes to customer service, we already know what digital technology, like iPhones and iPads are doing to this market, where everyone wants to be connected all the time.” said Khosla. “If the insurance companies are not willing to realize that this disruption is going to change the business model, they will go out of business, I can guarantee that.”
However, Khosla continued that he does believe that insurance companies are realizing that times are changing, along with the demographics that they serve. Nonetheless, the challenge for the industry is to successfully adopt these changes into the legacy technology world, since the traditional styles will no longer be adequate to service the market.
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