Thanks to new tech innovations, on demand insurance and other services have branched out into industries beyond entertainment and transportation. Customers can now purchase them via a mobile app.
By Rae Steinbach
It’s easy to understand why on demand insurance services hold so much appeal to customers. Signing up for insurance, making adjustments to a policy, and requesting documentation of your plan used to be tedious processes that typically involved calling an agency. Even just finding the ideal plan could be a struggle for many customers.
With on demand insurance, all of those processes are simplified. Customers can sign up for products like apartment insurance, manage plans, and make adjustments through an easy-to-use app or site. Most importantly, they can more easily sort through their options to find the right plan for their needs and budget.
The rise in popularity of on demand insurance is likely to impact customers throughout the world. However, the Jordanian market in particular could benefit.
The Jordanian insurance sector has historically been relatively small. Partly this was because other financial sectors that typically create demand for insurance were immature.
This means that generating interest for insurance among Jordanian customers could be difficult. Insurance simply wasn’t popular enough to attract much interest naturally. Outdated sales methods haven’t helped either. It can be difficult enough to sell a product by cold-calling people. That task only grows more challenging when you’re selling a product many aren’t very familiar with.
On demand service apps and the economy around these can change that. A key reason people embrace on demand services is simply due to the fact that they offer a degree of convenience and personalization that outdated approaches can’t match. This is especially important when selling insurance. Letting customers buy policies online or via a mobile app reduces the friction that can prevent someone from otherwise making a purchase.
More importantly, this approach gives customers more opportunities to tailor a plan to their exact needs. Again, the Jordanian insurance sector has been small for a long time. Therefore, customers may be reluctant to buy a policy if they feel they aren’t familiar enough with the product to understand what they’re buying.
On demand insurance services offer a greater degree of transparency. Customers can easily check to see if they’re paying more for coverage that they don’t genuinely need.
This is key to selling insurance in a market where customers aren’t familiar with the product. Again, although on demand insurance will likely affect the market throughout the world, in Jordan, it may revolutionize the entire industry. The economic growth that results will benefit virtually everyone in the country.
About the author: Rae Steinbach works with the New York-based Jetty Insurance Agency.