On-demand insurance delivered on mobile and underwritten in seconds is gaining significant momentum. And it’s beginning to attract some serious attention.

There are times when you don’t know you need insurance until the last minute. A spontaneous decision to rent a car, or jet off on holiday, for instance. There are also times when you don’t need insurance all year round, just in the moment. This is where on-demand insurance comes into play.

The unbundling of insurance policies, into specific risk protection, has many advantages for the insured. When this is partnered with an intuitive mobile interface, it can be a fantastic solution for customers wanting to insure on the go. On-demand insurance brings a new simplicity to an industry that is often seen as complex and unfriendly to the consumer.

But is it always useful to break insurance packages down like this? Some in the industry have pointed out there is a potential for on-demand insurance to unnecessarily complicate matters.

For example, personal injury insurance is now available unbundled for sportsmen and women to be covered whilst involved in their sport. But what happens when you step off the field and trip over your laces? At what point does specific risk insurance become an inconvenience rather than a convenience?

We’re under no illusion that there’s a huge customer base for on-demand insurance products. But should providers, and consumers, focus on insurance for every little thing?

On-demand insurance evolved out of a need to improve the relationship between consumer and insurer. Two customer touch points – the selling point of a complex product, then a difficult claims process down the line – isn’t enough to build relationships or loyalty. On-demand insurance can help.

There is no doubt there is a place, and a need, for on-demand insurance. However, there is also a place, and a need, for bundled annual insurance. As always, the customer’s needs will come first, when it comes to purchasing behaviour.

In the meantime, we’re sure we’ll see more and more investment into on-demand insurance providers.

Ones to Watch

  • Sure, the on demand insurance app, provides cover for flights, rental cars and properties, and smartphones for whenever and however long you need it.
  • Cuvva, another app, provides fully comprehensive car insurance at an hourly rate, underwritten within 10 minutes.
  • Insurify, launched a chatbot, powered by AI and Natural Language Processing, that provides a quote comparison and advice service through Facebook Messenger.

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