Eliminating or drastically mitigating the bindability gap would go a tremendous distance toward improving consumers’ P&C purchase experience.
Boston, MA (Sept. 30, 2016) – Imagine deciding to purchase an item and, when attempting to pay for it, being told to come back at some point in the future once the actual price can be established. In addition to creating confusion, this situation likely creates a negative purchase experience. But this is exactly what happens to most U.S consumers when they purchase a property and casualty insurance policy. Aite Group calls this delay the bindability gap, and it occurs because a bindable insurance quote cannot be presented until carriers have performed their underwriting due diligence. But both independent brick-and-mortar agencies and online insurance distributors face increased consumer demand for a better purchase experience, and they need to close the bindability gap to compete with captive carriers.
Several firms have recognized the opportunity to help close the bindability gap and have developed technology to address this issue. Some of these firms are vendors, and some are insurance distributors that are leveraging other vendor technology to deploy a better purchase experience for their clients.
“Consumer expectations for purchasing P&C insurance are shifting, and new technology is emerging to help meet these expectations. If key stakeholders in P&C insurance can harness these two trends, there exists an opportunity for them to create a competitive advantage,” says Aite Group senior analyst Jay Sarzen.
Aite Group’s latest report, Closing the Bindability Gap: Competing with Captives to Provide Real-Time Quotes, examines the technology that is available to help close the bindability gap and looks at why it is important to meet shifting consumer demands. This 24-page Impact Note contains two figures and two tables. Clients of Aite Group’s P&C Insurance service can download this report, the corresponding charts, and the Executive Impact Deck.
Independent agencies and online distributors must seek point-of-inquiry binding capabilities to compete against captive agencies. Can technology help these distributors compete by closing this bindability gap? (Closing the Bindability Gap – Aite Group report)
About the Report
Based on 13 interviews with industry observers and leaders from July 2016 through September 2016, this research examines the technology that is available to close the bindability gap and looks at how some firms are deploying it. It profiles seven vendors: Avyst, BizInsure, Bolt Solutions, Fenris, Spixxi, Sure, and Trove.
This report mentions Actua, Allianz Accelerator, Amazon, Anthemis, ff Venture Capital, Fosun Kinzon Capital, Gordon Bell, Guidewire, IA Capital Group, Momentum Technology Ltd., Montage Venture, Munich RE, Network of Vertafore Users (NetVu), Oak HC/FT, Platinum and Neurone Ventures, Pivot Investment Partners, Professional Insurance Agents of America (PIAA), State Farm, Suncorp Group, and Vertafore.
About Aite Group
Aite Group is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group’s analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends.
Source: Aite Group
Tags: Aite Group, Allianz, Amazon, Fenris, Guidewire, Munich Re, State Farm, Vertafore
