The retail world has changed rapidly over the past 10 years, and now, with the help of Amazon and others, almost anything from A to Z can be purchased online.
Beyond just physical products, this includes intangible goods like airfare, financial investments, software and even mortgages. any other items. Curiously, at least in North America, insurance and warranty products have not really made the leap to the online world.
The world of insurance is more than just personal home and auto coverage though, and there are a number of specialty products well suited to online direct sales.
One of the most promising products is automobile warranty and replacement insurance, both of which are normally sold in conjunction with each other at a vehicle dealership when a consumer buys a new (or at least new-to-them) vehicle.
Dealers are renowned for drastically marking up these products (often to 3-4x the actual premium amount), and such consumers are finding very poor value in the traditional sales channels. By cutting out the middleman and offering auto warranty and replacement insurance coverage online, consumers can connect more directly to the insurance company backing it, and save thousands of dollars in the process. This is a big win for all involved.
Obvi is facilitating the win for consumers. We provided a no-obligation quote for your vehicle in less than one minute – online. Although many will welcome the technology revolution in the insurance industry (or “insurtech” as it’s often known), it is surprising that Canadian consumers have had to wait this long.
Internet-based insurance purchasing has been available in the UK for almost 20 years, and Internet-originated purchases now make up over 80% of the UK personal insurance market.
Insurtech investment for 2017 realized more than $2 billion in funding, bringing the six-year total to more than $8 billion worldwide! As a result, the Canadian marketplace is positioned for rapid transformation in all aspects of the insurance industry.
As the market is evolving, and more complex policies are starting to be offered directly online, insurtech is rapidly changing the extended warranty business with a big, long overdue, win for consumers!