How can you evaluate the effectiveness of your insurtech strategies?

Defining clear objectives in implementing strategies is important as it helps stakeholders understand and evolve accordingly. The purpose, actions involved, and the process should all be clearly mentioned, documented, and communicated, as it increases operational efficiency and helps achieve objectives quickly.

The outcomes definition is the most important. A clear vision and mission are to be defined, and outcomes should focus on those. Define clear objectives like increasing the straight-through processing based on the underwriting risks. Identify which product you would recommend for the customer to move forward with the business and corresponding options.

Define relevant KPIs aligned with your business goals and objectives. These may include metrics such as customer acquisition cost (CAC), customer retention rate, customer lifetime value (CLV), conversion rate, churn rate, average policy value, and net promoter score (NPS).

Collect feedback from customers through surveys, interviews, or focus groups to gauge their satisfaction levels with insurtech products and services. Measure customer perceptions, preferences, and pain points to identify areas for improvement and enhancement.

Applying the label "insurtech" and then somehow thinking you need to do something new is rarely helpful. There are all sorts of useful discussions about what insurtech means and the impact it has on the industry's approach to technology-enabled change, but when it comes to how you use and engage with "insurtech technology" to enhance your business, it should be simply considered another form of tech, and follow the approach you have been (hopefully) following for years. If someone wants to find a difference then it might be that small insurtech firms can be more flexible and responsive than some large tech firms so the nature of the feedback loops may be tighter.

Evaluate how well your insurtech strategies work, on an ongoing basis, through collaboration. Listen to feedback from everyone involved, like clients and developers. Use data and watch what's happening in the market to see what's working and what needs improvement. The result? Continuous improvement and happier clients.

Analyze the financial impact of insurtech strategies on business performance. Measure metrics such as revenue growth, profitability, return on investment (ROI), and cost savings achieved through efficiency gains or automation to determine the overall financial health and success of insurtech initiatives.