On-Demand Insurance Services: Perfect Solution for Insurance Organizations

 The times have rapidly changed over the years for the insurance industry. As technology has taken over, the speed at which products and solutions can be developed and deployed has witnessed a tremendous rise. This has allowed insurance companies a certain amount of flexibility to provide

customization to its consumers, as well as on-demand services. The rise of smartphones and online insurance models have allowed for the rise of on-demand insurance services. It is important to understand what is on-demand insurance.

What is On-demand Insurance Services?
On-demand insurance services is a type of services which is extremely flexible and can be availed at a moment’s notice by simply turning it on and off from the insurance company as and when needed. The insurance company can offer a host of services to its customers via its online portal, and users can avail whichever service they need based on their requirement, such as time-based, pay as you use model and more, like a subscription. The advantage it offers is low priced cover, frictionless
experience for the customer, and large transaction volumes for the insurance provider.
How Insurance Companies Can Leverage Gig-economy?
We are living in the world of gig-economy, where people are looking for multiple avenues to earn. This has also provided insurance companies the opportunity to tap the gig-economy market for providing custom and on-demand solutions to people. This has helped ease the financial burden on
the users as they do not need to avail and insurance for the entire year, but avail the insurance cover only when they are working on a specific gig.
To understand this through an example, here is a small scenario:
John is a freelancer, who works multiple gigs from time to time based on what is on offer at the time and what pays the best. John is currently working from home at a data-entry job, and later is scheduled to work at an airport as a baggage handler for a couple of weeks during the holiday
season. Now, John when working from home, does not require accidental insurance since he is not in much of a risk of getting injured gravely at home. On the other hand, in two weeks, he will need a comprehensive accidental insurance, but only for a couple of week.
A Customer-first Approach
In this scenario, insurance companies can provide an on-demand insurance solution to John where he only has to avail the accidental insurance for two weeks and pay the premium only for as much.
Later, if he has to extend his tenure, he can do so by paying the additional due premium for the extended tenure. This way, John does not have to bear the hefty premium for the entire year, yet gains the cover he needs when needed the most.
Similarly, in the case of John’s hiring company, they do not have to pay for the employee liability insurance for John for the duration of an year. They too can avail an on-demand insurance solution from the company to get coverage only for a few weeks for its temporary workforce, and even they
end up saving a substantial amount.
This helps the insurance companies too because they are able to gain customers, keep the customer through their competitive and small-priced offerings, while also being able to manage the risk better.
Empowering Retail Agents and Brokers

On-demand insurance service also works for company assets, which is their retailer network. Numerous agents and brokers working for an insurance company can also avail on-demand insurance services in terms of COI management, policy checks, document management and a lot
more. This helps the company reduce the processing time of insurance documents and helps their field force teams to get more customers, thus boosting their earning potential.
CAT Modelling Services
Insurance companies can leverage an open source platform to combine a distinctive community of catastrophe modellers and experts to gain a better view of the risks on hand. This helps insurance companies get a better understanding of the risks on hand, on-demand when providing on-demand insurance solutions to its customers, thus helping safeguard the company from any untoward risks.

Quick Claims Validations and Processing
On-demand insurance solutions are possible through digital-first solutions which is also helpful to leverage on-time, on-demand claims processing for customers and the insurance company alike. This helps fast-track claims for the customers. On-demand insurance services is the future and there is no other perfect solution for insurance companies to be competitive and gain customers