Croatian startups engaged in insurance technology (insurtech) Osiguraj.me and Amodo have made the best use of their time working from home and have achieved business successes. Interest in their services has intensified under pandemic conditions, and accordingly, the realization of insurance sales has increased.
– Our online platform for selling mandatory car insurance Osiguraj.me grew by seventy percent in April compared to March. Instead of around three hundred policies, we sold more than five hundred. If such results continue, we expect a rapid arrival at a thousand or more policies per month – says Hrvoje Bujas, co-owner and co-founder of the startup that maintains an exclusive partnership with AS Osiguranje.
A novelty in its offering is that vehicle insurance policies can now be purchased by legal entities as well as individuals. Bujas emphasizes that they continue to develop the platform and reveals that they will soon introduce a chatbot, a virtual insurance representative, to the market.
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Increased Interest
Amodo, a startup that was named one of the top five insurtechs in the world by the Financial Times last year, spent the corona crisis developing solutions for insurance companies, internal planning, and approaching potential clients. Interest in its solutions has increased in recent days.
– The segments in which we are strong are becoming increasingly sought after, so we can say that corona has positively impacted our industry. Insurers are now looking for ways to quickly implement the mechanisms that our platform has advocated from the beginning: digital distribution, personalization of offerings, and easier use of insurance products, with the possibility of all elements – from purchasing a policy to filing a claim via mobile – explain those at Amodo, which recently closed the first tranche of Series A investments.
The Hungarian fund Lead Ventures invested nearly 23 million kuna in the Zagreb startup, which collects behavioral data about clients using smartphones, especially regarding traffic behavior, and enables innovations in the offerings of insurance companies.
– We are currently intensively introducing mechanisms that we already have for motor vehicles for all other forms of movement. The main idea is for our platform to provide insurers with a complete picture of the client based on the data we receive from their mobile phones – emphasizes Amodo’s CEO Marijan Mumdžijev.
Since its inception, the company has collaborated with insurers; some of its clients include AIG, Porsche Bank, P&V, and Triglav. With the new investment, its client base is expected to quadruple, and it will also establish a new development center in Budapest.
Growth of Digital Channels
Croatia Osiguranje has also adapted to the new market needs for remote business during the crisis. Digital channels – the website and mobile application – were already on an upward trajectory before the pandemic, but due to circumstances, digitization has accelerated further. At the beginning of April, this insurance company launched a redesigned website and actively communicated with clients on social media, via email, and SMS.
– Since the beginning of the crisis, we have intensified communication with clients across all digital channels and positioned ourselves as solution providers for their needs, whether it is about purchasing policies, filing claims, managing insurances, or simply providing the help they need. Clients have recognized this digital availability of CO, and we have recorded a significant increase in interactions, more policies sold, and more claims filed through our digital channels – they share their experience with the corona crisis in this insurance company, whose team of analysts and data scientists is developing new advanced analytics models for the future.
In the times to come, Croatia Osiguranje aims to focus even more on the client, transparency, and simplicity.
– We want to enable people to insure themselves and their property in a few minutes at the places and devices they naturally use in everyday life, to have a transparent overview of all their insurances at any moment, and the ability to manage them independently, using a language that is understandable to everyone. Technology also brings increasing possibilities for customization for each client, single customer view, which is why we are further focusing on adapting our digital products and services to the context in which the client finds themselves – they shared their plans with us at CO.
At Generali Osiguranje, they say that their technological readiness and competencies have enabled a secure business environment, so in accordance with the instructions of the relevant authorities regarding the implementation of epidemiological measures, they organized remote work for employees for whom it was possible due to the nature of their work, while maximizing the effect of technology, remaining available to their clients and partners.
– Generali is committed to implementing the ‘Generali 2021’ strategy to achieve our ambition – to become a lifetime partner for clients. One of the foundations of the strategy is digital transformation. Constantly striving to maintain excellence in customer experience with our products and services, we have initiated a series of activities and projects to innovate processes and technological setups that are particularly highlighted in the current situation – they emphasize at this insurance company.
Amodo’s vision is for its platform to be a unique place for all insurance projects related to IoT and for its application to enable a comprehensive purchase of insurance products and filing claims as soon as they occur. When it comes to the development of insurtecha, they are convinced that it will further automate and that the number of policies sold with the help of artificial intelligence will increase.
– Insurtech will finally, after ten years, experience serious growth in sales and system development in the non-life insurance segment this year, especially in the coming years, and in the future reduce insurance policy prices and operational costs for everyone in the system. We are also waiting for a more appropriate backend system, the core system of the Croatian Insurance Bureau, to ensure that the data is as up-to-date and accurate as possible – concludes Bujas.
The Key Role of Technology
At the Croatian Insurance Bureau (HUO), they say that during the peak of the crisis caused by the COVID-19 pandemic, they called on all citizens to adhere to the decisions of the National Civil Protection Headquarters and appealed to citizens to communicate with insurance companies through digital channels or by phone.
– Insurance companies are operating without interruption and were prepared for the situation with the COVID-19 disease. Technology has played a key role in enabling citizens to access products and services from insurance companies even under extraordinary conditions, with the possibility of timely information and advice. Almost all types of insurance can be concluded online and by communicating via email with insurance representatives – they say at HUO, adding that insurance companies had already been very focused on digitizing their operations and focusing on client needs.
Thus, they highlight projects for the introduction of demanding IT solutions in individual insurance companies, modernization of platforms for communication with clients and their own distribution networks. Further development will certainly be directed towards the digitization of operations, but above all towards improving the customer experience and broader availability of all products and services.
Remote Mediation
Due to the crisis caused by the COVID-19 pandemic, the Mediation Center at the Croatian Insurance Bureau has also stepped forward, enabling citizens to resolve disputes from insurance and compensation relationships digitally. Insured parties, insurance contractors, and injured parties can thus resolve their disputes from the safety of their own homes, avoiding direct physical contact and protecting their health in the current situation. The mediation process is entirely free for insured parties, insurance contractors, and injured parties, and the application process is fully user-friendly.
– This example shows how business processes and ways of communicating with consumers and users will change in the foreseeable future – they say at HUO.
The global insurance market is transforming towards digital business models and new types of products. Collaboration between traditional insurance companies and new insurtech firms is expected to bring new models and revenues, reduce operational costs, and increase profitability while focusing on customer needs.
Accelerating Investments
Insurers, they emphasize at HUO, have long resisted changes, but this has also begun to change rapidly. According to Deloitte data, in 2018, $2.6 billion was invested in insurtech companies globally, and these investments accelerated – in just the first six months of 2019, this amount rose to $2.2 billion. This shows that simpler products, tailored approaches to new generations, and the digitization of operations are key to continuing positive trends in the insurance industry, which is ready for change.
The modernization and digitization of business processes and their impact on the business world, especially on the insurance industry, were also among the main topics of the block of presentations by experts in digital business and artificial intelligence at the Croatian Insurance Days 2019 in Opatija, organized by the Croatian Insurance Bureau. This shows how innovative trends in insurtech are being monitored and introduced into the everyday operations of insurance companies in our market, from initial small initiatives focused on digitization to the adoption of official corporate strategies of broad scope.
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