We live in a digital, dynamic, mobile world, a world where experiences become even more relevant than security and stability. The experience we go through as customers, many times, has more value today than the product or service offered. The world itself is transforming, and with it, brings changes in consumers and, therefore, necessarily in entrepreneurs.
Social networks have created thousands of new opportunities and options for all markets and, especially for the insurance market, a new way of marketing products and interacting directly with customers. But this requires that these products meet certain requirements: they must be easy and quick to buy, keep up with the evolution and changes in the market, be available at any time and in any place, among others.
This is where technology companies become a fundamental part of the roadmap for companies, especially insurers, as they are not experts in creating products quickly, simplifying them or creating distribution channels for new and expanding lines of business.
The firm LISA Insurtech was born in 2018 with its own resources and today is present in many countries such as Chile, Mexico, Peru, Colombia, Spain, Ecuador, Bolivia, and the United States and, recently, in Argentina.
In this article we interviewed Gino Volpi, CEO and Founder of LISA Insurtech, who commented that what generates a differential value between LISA and the rest is that there is a clear importance for the claims, which arises from the little empathy that was detected by the insurers in the attention to their policyholders in such a painful moment as a loss.
LISA achieves through its product, LISA Claims, the disruption through artificial intelligence, which analyzes photographs and documents that show the damage or the size of the claim to have a proposal for change or solution to the claim in 2 minutes. The branches in which the company is currently focused are Health, Auto, Life and Home.
How did the idea of creating LISA Insurtech come about and how did it develop?
LISA is a company that was created to make people’s lives easier when reporting a claim. Nobody claims their insurance for pleasure, it is always a moment of great vulnerability, with many associated emotions. And we want it to be solved as quickly and simply as possible. We want to help insurers make this possible through the use of artificial intelligence and automation. In doing so, they will not only be providing the empathetic and excellent service that their customers expect, but they will also be saving time and costs. It’s a win-win solution.
How do you currently view the insurance market?
We see a dynamic and highly competitive market, which today faces significant challenges.
On the one hand, we have never felt more vulnerable than after the emergence of Covid-19. This fragility has enhanced the value of insurers and their promise to make uncertainty more bearable. People have become more aware than ever of what they stand to lose without the support of an insurance company.
However, the current worldwide economic crisis and the high inflation in many cases will prevent people from continuing to meet their economic obligations, such as, for example, the payment of policies. Spending restrictions will also make it less likely that a significant part of the population will take out this type of product. All this will significantly pressure insurers to maintain a standard of service excellence in order to avoid the loss of clients and attract new ones, while there will be a strong internal demand to reduce costs and increase efficiency.
What are the disadvantages for insurance companies due to the lack of technology upgrades?
The insurance market is perhaps one of the most traditional of all industries. Because of the very nature of their work (no one is more risk-averse than those who work in insurance), they are far behind in the digital transformation. And insurtechs seek to contribute in this line, through solutions that allow to install the benefits that technology brings: speed, automation, simplicity, efficiency, cost reduction.
We see that the insurance market uses little technology. We have to consider that today digital natives represent an important percentage of the insured portfolio and that the confinement also installed in many people the expectation of solving most of their needs online. Today people expect omnichannel communication (fluid and high quality), 24/7 attention, policies tailored to their needs (which we can achieve with data analytics tools), self-consultation systems and purchase of services without intermediaries, and online complaints systems.
What are the services and improvement proposals you provide for insurers?
Our bet seems simple, but it is highly disruptive. It consists of supporting insurers to think differently. To rethink their current processes. Technology has little impact if we do not install a new way of seeing things. And that is what we are looking for with LISA Insurtech.
With LISA Claims it is possible to resolve in 2 minutes a process that can take up to 40 days. It doesn’t get more disruptive than that. We want to help insurers rethink their processes. This new way of looking at things, plus the application of advanced technologies, makes it possible to resolve a claim simply, quickly, cost-effectively and with empathy towards the insured. LISA Claims is already a proven solution and we want to continue adding value to the industry’s current problems. We believe IOT can really change the face of the industry. At LISA we have been working on an applied solution to perform deep and agnostic integration between value-added startups with telemetry specialization and providers of telemetry information sources (such as smartwatches or sensors). What we are looking for with LISA TMT is that companies are prepared to face new challenges and products using IOT, such as embedded insurance, insurance per use (car and home), parametric insurance and life and health insurance.
How are these services received in the insurance market?
In our early days, the great challenge was to convince a highly conservative and change-averse industry that technology was the path that would allow them to improve their processes, reduce costs, increase efficiency and deliver a better service to their customers. It was very difficult to advance in this evangelization process. But when they got to know us, saw our product and all that artificial intelligence can do, the value was unquestionable.
Today we face a different challenge, we have to take care of the new type of consumer post Covid 19, the one who because of the confinement was forced to make the leap to online consumption and today expects the same from his insurer as from the supermarket or a retail company: a fast, immediate, transparent service. A quick and efficient solution to their problems, without even having to leave their home. And here we see that many insurers are still trapped in manual work, in paperwork, in the need to require the physical presence of their customers in various parts of the process. And that’s where a major gap is occurring. Insurers that don’t understand this and don’t jump on the digitalization bandwagon are going to be left behind.
When they say they use AI, what do we call artificial intelligence and how can it apply to the insurance world?
The most important thing is to understand that technology today is a commodity. What differentiates us is the knowledge behind that technology and how it allows us to drive a new way of thinking about processes. That is where the actual change lies.
With LISA Claims, the use of artificial intelligence allows us to quickly analyze the evidence of a claim provided by the insured (whether documentary or images) and even detect fraudulent information. On the other hand, the automation of flows and processes allows us to automatically advance in the process based on previously defined rules, which allows a claim to be resolved quickly and practically without human intervention.
How do you expect technology and insurance to develop in the future?
We see several developments that will be a significant contribution to the insurance world and in the not so distant future. For example, the IoT (Internet of Things) will allow insurers to deepen, broaden and enrich both the knowledge of the environment (its risks and opportunities) as well as that of their customers (preferences and behavioral patterns). The information provided by smart devices, such as smartwatches, can anticipate risks and prevent claims from occurring or reward responsible behavior by policyholders, among many other possibilities. Another big trend we see is hyperfocusing. Thanks to Big Data, we can now offer more personalized services than ever before and, at the same time, deliver great value to people.
However, none of this is enough if we don’t put our customers at the center, but why? People expect high empathy and consideration from their insurance companies. They want to be considered and to feel supported, especially in such difficult and vulnerable times as those that require the activation of an insurance policy.
Insurers that decide to focus their strategy on their customers must take advantage of the opportunities offered by technology to ensure empathetic and human support throughout the value chain.