Traditional insurance firms are increasingly pushing digital innovation. The way forward is to cooperate with specialized providers to digitize selected processes. Liechtenstein Life and diPAY make for a good example.

Liechtenstein Life Assurance AG announced a cooperation with digital payments platform diPAY. The goal is to enable the insurance company’s affiliated brokers to use diPAY to process payments for remuneration agreements with Liechtenstein Life customers. diPAY’s payments platform should speed up the processing while Liechtenstein Life’s brokers will remain the personal contact persons for end customers.

Liechtenstein Life is one of many insurers currently pushing digital transformation. The COVID pandemic has led to customers increasingly demanding online solutions, forcing brokers to offer digital channels and tools. According to 24sessions, 60 percent of insurance brokers are currently planning to implement video consulting in their everyday practice. Digital solutions can make insurance brokerage faster, more cost-effective, and more efficient.

“We want to ensure that our brokers can concentrate 100 percent on advising our end clients “, says Stephan Bruckner, Director Sales Department Germany at Liechtenstein Life. “To this end, we are providing them with diPAY, a tool that allows them to settle net policies, i.e., payment for ongoing support, easily and efficiently with their customers. We also provide data and training opportunities digitally. Only in this way can our intermediaries make the most of their strengths in the advancing digitalization.”

The need to digitize

Traditional insurance companies also feel the presence of Insurtech companies which often offer more convenient products and services for end customers. In a way, the development in the insurance industry is somewhat similar to what happens in banking: The big traditional insurers are enjoying a stellar reputation and own the client base. They understand the need to digitize to stay competitive in the long-term, but digital transformation is a major challenge due to their size.

Digitize step-by-step by using external service providers like diPAY is the way forward. Insurers are no tech firms, so coming up with their own internal digitization efforts will pay little dividends. Cooperation with FinTechs and InsurTechs provides a better way forward.

“With Liechtenstein Life, we have a new partner at our side who fully shares our view of efficient digital brokerage,” says Handan Isik, co-founder and Managing Director of diPAY. “By increasingly selling insurance digitally, brokers are also consistently demonstrating their important role as drivers of change in the advisory process.”

We will likely see more and more such corporations in the future. In particular, the intersection of insurers, brokers, and customers is ripe for digital innovation. Where several stakeholders share one value chain, things get complex quickly. This is where bottlenecks and delays happen, and this is where efficiency gains through digitization and automation can make a real difference.

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