This story lies information for financial technology startups and agencies, who want to create an insurance app like Lemonade. Herein we’ve rounded up four surreal features that you can give a thought during insurance app development.
Time has changed. Today, people spend a huge time on their smartphones, and it is continuing to grow every year. As the devices are becoming more sophisticated, the number of activities that we can do on mobile is also increasing. And, it means that we are more likely to use mobile apps with greater frequency. That being also said that there is an app for everything from hiring a cab, tracking sleep activity to ordering food on-demand.
Here, we will talk about the insurance app, which is known as Lemonade. This insurance app has made some big moves in the world of insurance. As per the latest report from TechCrunch, “Lemonade company uses AI (Artificial Intelligence) and chatbots to sell insurance”.
Indeed, insurance is a pretty tricky business niche that depends on a lot of data science to right-size coverage. Lemonade is one of the first completely new entrants in the market to design a soup-to-nuts insurance business for the smartphone era.
As per another report from TechCrunch, “Lemonade company has raised a total of $180 million, including a whopping $120 million round by SoftBank in December 2017.”
Lemonade: The Insurance App
A fully licensed insurance company offers insurance policies in property and casualty insurance market. It is P2P (Peer-to-Peer) insurance platform powered by artificial intelligence and behavioral economics to offer home, the renters insurance carrier for residents of California, New York, and Illinois. Lemonade company has already covered 90,000 policyholders for policies worth tens of billions of dollars.
By using the insurance app, users interact with chatbot in order to provide information about their coverage needs, location, and property details. Lemonade app uses artificial intelligence to create a customized policy for each app user. Currently, Lemonade is available in US states, including California, Ohio, Illinois, New Jersey, Arizona, New York, and Texas.
Insights: The Insurtech Market
Over the past few years, insurtechs have emerged in the insurance space. And, the Insurtech companies raised $2.6 billion according to Financial Technology Partners, a San Francisco based investment bank. Moreover, the total 91 deals have raised a total of $1.5 billion.
In the below image, you can check the global venture activity in insurtech from 2010-17. The growth was in the upward direction.
Adopting Technology by Insurtechs
Many insurtechs are also adopting new technologies and concepts, which incumbents are only just beginning to experiment with. There are eight important new technologies that are widely adopted by incumbents and being used by insurtech in order to solve real business problems. These technologies can support insurance product innovations, including:
- Usage-based Insurance
- Peer-to-Peer Insurance
In the above-given image, you can check new technologies that Insurtechs companies are adopting.
Give a Thought to These Top 4 Surreal Features Before Developing an Insurance App
1. Offering The “Live Policy”
Image Source: coverager
Lemonade has already made big moves in the world of insurance. And one of the best moves is the implementation of live insurance policy feature. The insurance app has made big changes in an actual insurance policy.
For decades, the insurance companies have been held to long, tedious in their insurance contracts. And, when it comes to the physical documents, more than 40 long pages difficult to understand for normal people. And, nobody has enough time to read such long doc in this busy world. But, Lemonade app is a game changer in the niche of insurance. According to the open source insurance policy, which is called as Policy 2.0, it is meant to give app users a clear and easy way to understand what is and what is not covered in users’ insurance policies.
The new and handy policy feature is just a matter of few clicks away. All just user needs to do is to scan the QR code, and users can view their policies online, make changes and file claims. In simple words, users can make edits and contributions to the policy.
By providing such feature, you can give transparency to consumers and provide policy on phone. However, it is important to provide a policy that makes sense to the five-inch screen.
One hurdle was that 10,000 word-long insurance policy is legally required to be in the document. This change from Lemonade requires the company to work with regulates to allow the new policy to be sold, and that conversation differs from state to state.
2. Zero Everything
Image Source: lemonade
The insurance startup company, Lemonade, provides renters and homeowners insurance. So, the next important feature of insurance app is zero everything. With such feature, app users do not need to pay deductibles and have their rate increased when filing claims. In simple words, no deductibles and no increase in pricing.
Regardless of the value of the claim, with zero everything, users get the full amount needed to replace the items with the new ones. If $500 bike would steal, then the company will pay to user $500 to get a new one. After signing up for a new policy in an insurance app, there is an easy-to-use feature i.e. Zero Everything.
In the United States, home insurance companies spend more than $10 billion each year on the bureaucracy of claim handling alone. Nobody likes the endless paperwork, faxes, and phone calls that create hassles. In fact, small claims often cost incumbents more to process than the size of the claim itself. All these small and big claims simply discourage users from filing them. So, it is important to note that there are no bad intentions behind this whole process, and it is just an unfortunate consequence of the way insurance works.
Bottom Line: Make sure that you create a handy and useful feature like Zero, allowing your customers or policyholders to easily access the app and claim the amount.
3. AI-Enabled Chat Bots
Image Source: lemonade
Nowadays, everyone expects quick results to get his/her work done. So, it is important to automate things by chatbots or it can be managed by algorithmically enhanced policy management tools. Or, we can say that AI-enabled feature to process the data well.
The chat engine or chatbots should run on an entirely new NLP (Natural Language Processing) infrastructure. The Chat Engine lives on the servers and drives all of our conversational experiences from signing up for a new policy to offering the instant and delightful customer care.
The Chat Engine supports CXAI (CX: Customer Experience AI: Artificial Intelligences) that provide an infinitely scalable customer care experience built in-house. It allows users to make changes to their policies and get relevant answers to complicated questions, which is all in natural language by using AI (artificial intelligence).
Image Source: lemonade
So, being a startup company, you can create superior customer experience with deep learning AI. For instance, the ride-sharing app Uber has just implemented customer care with NLP (Natural Language Processing) and machine learning.
It is also pivotal to make the experience as painless as possible, and it can provide the overall service improved, no matter under which category your app is falling. The AI-enabled feature also works by reducing the cognitive load for customer agents by automatically suggesting.
4. Seamless Payment Integration
Image Source: lemonade
Believe it or not, the feature, which is known as seamless payment integration always plays an important role in the app. You need to give extra attention to this basic feature while creating an insurance app like Lemonade. The seamless payment option also attracts more users to use the mobile app. In addition, if your mobile app is fully integrated, then you are maximizing the potential of your app’s success.
As long as the insurance app is concerned, then such feature plays an important role. By including this feature, allow policyholders to save time, avoid errors, and fulfill their requirements along with a seamless payment process in one tap.
You have just gone through with the main features that insurtech can consider before developing an insurance app like Lemonade. Apart from this, if you have any worth-sharing idea on insurance mobile apps, then you can cross-verify it with us. Being a leading Android/iPhone app development company with the experience of developing over 2500 mobile apps, we will comprehend your requirements and suggest an optimal solution for the same.
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