Similar to pretty much every industry in the world, home insurance has been disrupted completely. New technology and customer experience are forcing insurance providers to evolve in new ways.
Esurance sells insurance directly to customers without agents, Trov created an on-demand insurance market, and Lemonade Insurance gives customers payouts instantly. Different ways to disrupt, all with one similar vision. Customer experience was a priority and they used advancing technology to excel at it.
So, with these new brands entering the insurance market, what should the legacy companies do? Scrambling to create the same technology is costly on both the wallet and time. Smart companies recognize it is more cost effective to explore strategic partnerships and tools that can be used to build on this new technology foundation.
Simplifying the customer experience
Which sounds more appealing? Spending several hours going through multiple companies’ quoting processes only to end up completely unsure, or having a mortgage lender press a button and give you recommended quotes based on accurate and specific data? Keep in mind that you’re in the middle of a stressful home-buying process and want to close and move into your home as quickly as possible.
Which experience would you choose? The second one, right? That’s what Matic is providing.
Home insurance providers that partner with Matic have a huge advantage to acquire customers who get their quotes from the home lenders using Matic. The Hassle Factor describes how people will choose not to take action if the effort becomes a hassle and does not match their intentions. If users are handed accurate quotes with comparison coverage and pricing through Matic, they are unlikely to even consider other companies outside of Matic’s engine.
What is Matic Insurance?
Matic Insurance is a tool that mortgage lenders and insurance providers can partner with to help new homeowners find home insurance faster and easier than ever before. When an insurance provider gives a user a new homeowners insurance quote, there is vital information that needs to be provided by the user in order to get a quote. Using Farmers Insurance as an example, they ask questions like:
How long ago was the property claim, what year was the home built, square footage, number of living units, exterior wall type, how old is your roof, marital status, number of half bathrooms?
That’s a lot of questions. It's not even the full list either.
Each of these fields is extremely important to give a realistic quote; however, mortgage lenders like Roostify use APIs to pull all of this information anyways. This is where Matic found an opportunity.
Matic uses APIs to pull all vital information listed in the fields above from mortgage lenders
and then sends this out to insurance providers, giving the user the most appropriate quote based off of this information. In order to have a seat at this streamlined table, companies like Nationwide partner with Matic Insurance. The result will be a better experience and higher satisfaction for Nationwide customers.
Does this create Competitive Advantage?
The short version, yes. When we look at the competitors currently utilizing Matic, there’s not many. Esurance is one of the early adopters of new technology in the space and we project that they will look for a partnership as well. Insurance providers can be an early adopter and place themselves at the forefront of how users will eventually purchase homeowners insurance.
Matic is an opportunity worth exploring for a new avenue of selling homeowners insurance. Now that one brand has bridged the gap between lenders and insurance for homeowners, there is an opportunity for Matic or other brands to do the same thing within auto insurance.
Explore the opportunity using the Matic Insurance engine with legal, marketing, and technology teams to see if this is a viable opportunity worth investigating for 2018 goals.
Contributor: Tallwaver Louis
Written by Jessica Lizza