The insurance industry, like banking, is impacted by both consumer changes and technological advances. In this context, in Argentina there are already concrete initiatives, although it is a sector that has always been conservative compared to others, such as travel and retail.
In this sense, Daniel Gabas, VP Insurance Business Development of the technological firm Softtek, evaluates that the country has a significant delay with respect to Europe and the United States. And also in comparison with the region, where Chile and Brazil lead this trend.
At the local level, among the pioneers is 123Seguro, a broker that operates through digital channels since 2010. "That year we saw that the conditions on the client side were met, thousands of searches related to insurance that were unattended and some cases of success in Europe encouraged us to take the first step of proposing a digital alternative in our country, "says Martin Ferrari, CEO of the firm.
The executive assures that thanks to technology they have been able to reduce time and costs in the contracting of car policies. Today, the platform has more than 130,000 visits per month in Argentina. It also operates in Colombia and plans its landing in other countries of the region.
In addition, 123Seguro provides tools to manage the plan according to the personal characteristics of the client. For that, it recognizes its real needs to present fair and comprehensive coverage that adapts to the user's requirements, considering the proposals of more than 25 companies.
Iúnigo is the first digital insurer in Argentina. Although it has been operational since September, these days it is carrying out the commercial launch. The proposal allows online and immediate auto insurance, as well as managing all services from an app.
To launch this company, the initial investment of the San Cristóbal Group was U.S. $ 20 million and over a five-year horizon it plans to inject more than U.S. $ 50 million.
Main advantages for the insured
"Our three pillars to give value to users are: immediacy, digital experience and the fact of being focused on the customer," says Federico Malek, CEO of iúnigo, in dialogue with iProUP. The first has to do with the fact that the interested party can acquire his insurance at the same time he asks for the quote, being able to download the policy from his own cell phone. This is done in less than two minutes.
In addition, insured persons can drive with the circulation card stored directly on their phones, without needing to print it or wait for it to arrive at the address.
"The second thing is the digital experience: people do not want the phone on the crane, they want to see that assistance is already on the way when they need it." Through iúnigo, all services, such as requesting assistance, report a theft or damage of the The insured can self-manage all the services of their coverage at any time and from the comfort of their cell phone, "says Malek.
And he adds, with respect to the third point, that the consumer can, from the application, access different services related to the maintenance of the car and avoid accidents through advice and prevention alerts.
Who chooses digital channels
According to a survey conducted by iúnigo at AMBA among people aged 20 and 60, 74% of Argentines are willing to buy car insurance and manage their services through the Internet.
"There is a growing segment of people who now live, think and consume online, and we guide our value proposition," explains Malek.
Although the interviewees say that the opportunities offered by the market are enormous, the fact is that most of the insured still operate through traditional channels and this is accentuated in the interior of the country.
"Regardless of the insurance segment, the consumer has changed their way of interacting when making a purchase, a procedure or another service, so we must address it in another way," explains Martín Centeno, manager of Digital Communication and Web of La Caja .
This company has a mobile application that already has more than 250 thousand downloads, through which the user can report a claim, quote a policy and request a mechanical aid, among other actions.
"Our customers have on average about 45 years and 70% of customers are in the Federal Capital and Greater Buenos Aires, although since the first year of operation we have customers in all the provinces of the country," Ferrari details.
Growing market
In Argentina, during the last year the consultations to this broker increased 100% with respect to the previous year. Most customers focus on car insurance. "It is a complex insurance that requires a lot of expertise, so the advice is highly valued, in addition to having a lot of after-sales demand. Anyway, a couple of months ago we have motorcycle insurance platforms and other types of insurance that are coming up. to launch, "says Ferrari.
The choice is not random: the automotive market leads the ranking of customers. According to a report from the National Superintendence of Insurance, in the last quarter of 2017 they accounted for more than 5.5 million followed by a family combination, with more than 717,600; and motorcycles, with about 555,600.
For its part, iúnigo provides nationwide coverage, but currently markets in Capital and Conurbano "because it is the place where consumers who prefer this service model are located". The majority of its customers are 25 and 45 years old, and have both 0Km and used cars.
Although each one implements different solutions, one of the keys to this digital transformation has to do with the use of predictive analytics to be able to establish more competitive prices based on multiple factors, which go far beyond the traditional ones, to which is added the improvement in the processes related to the procedures that the insured must do to manage claims and subscriptions.
"For example, for third-party coverage complete with hail, listed in the 10 best-selling vehicles in the country, in iúnigo you can access a price that is 26% lower than the rest of the companies, but the most important are the benefits that each person receives in relation to the use of their coverage ", clarifies Malek.
"In this sense, if you did not use the insurance the first year, we will reimburse you for a renewal fee, and if you continue without losses, you will be charged fees after the second year and three after the third year, in addition to the bonuses. We believe that it is a fair way to recognize those customers who deserve to pay less for their insurance, "the CEO completes.
But the sector has a lot of room to grow in the country. In this line, the Secretariat of Entrepreneurs and SMEs announced in mid-August that insurers will be able to finance startups through the Entrepreneurial Capital Institutions (ICEs), computing their investments within the coverage state.
In this way, it will allow companies in the industry to invest up to 1% of their coverage status by accessing the tax benefits provided by the Entrepreneurs Act, while entrepreneurs will have greater access to financing.
"With this new resolution, a new opportunity is opened for all insurers, who are one of the leading investors in venture capital worldwide, but fundamentally, it is great news for entrepreneurs who will be able to have around $ 4,000 million to boost their projects, "Mariano Mayer, Secretary of Entrepreneurs and Pymes of the Nation, said during the announcement.
But beyond the specific initiatives that already exist in Argentina, the Softtek executive maintains that the offer is still immature. "While what digital insurers promise may sound tempting and easily accessible, we must consider that behind the digital there are complex processes, and that these last ones really add value to the insured, so it is necessary that the user has consider this when hiring an insurer ", remarks Gabas.
According to the executive, more insurers will turn to a serious and profound change in strategy during the next year, changing their digital model from the cultural, commercial and technological bases.
"They will have the challenge of finding suitable partners to incorporate innovation into traditional structures, to integrate this model with producers and intermediaries, and to adapt their new digital offer thinking of the customer's experience and putting it in the center of the scene", anticipates the executive.
