Summary
This report provides an in-depth analysis of the robo-advice industry and covers the different ways the robo-advice investing model is being adapted for insurance. It examines the appeal of robo-advice to consumers, as well as the challenges faced by robo-advisors in the market. It also highlights innovative offerings in the market that specifically cater to the insurance industry.
Robo-advice has become popular in recent years as investors seek strong returns at low costs. While current robo-advisors mainly focus on investments, a handful of them are broadening their service propositions to include other financial services and products, including insurance.
The robo-advice service proposition for insurance products currently follows two approaches. Firstly, established robo-advisors are partnering with insurance providers to offer insurance products through their website or platform. Secondly, some startups have adjusted the ‘traditional’ robo-advice proposition for insurance. By collecting data on prospective clients through a series of online questions, these platforms determine the suitability of various insurance products and suggest ones that match the customer’s profile.
Successful insurance robo-advisors will need to ensure that the advice and products they suggest are both relevant and affordable, and that customers have the ability to speak to a human representative when they desire. These success factors also hold for ‘traditional’ investment-focused robo-advisors. This allows successful existing players to expand their current proposition into insurance relatively easily.
Scope
Reasons to Buy
This report provides an in-depth analysis of the robo-advice industry and covers the different ways the robo-advice investing model is being adapted for insurance. It examines the appeal of robo-advice to consumers, as well as the challenges faced by robo-advisors in the market. It also highlights innovative offerings in the market that specifically cater to the insurance industry.
Robo-advice has become popular in recent years as investors seek strong returns at low costs. While current robo-advisors mainly focus on investments, a handful of them are broadening their service propositions to include other financial services and products, including insurance.
The robo-advice service proposition for insurance products currently follows two approaches. Firstly, established robo-advisors are partnering with insurance providers to offer insurance products through their website or platform. Secondly, some startups have adjusted the ‘traditional’ robo-advice proposition for insurance. By collecting data on prospective clients through a series of online questions, these platforms determine the suitability of various insurance products and suggest ones that match the customer’s profile.
Successful insurance robo-advisors will need to ensure that the advice and products they suggest are both relevant and affordable, and that customers have the ability to speak to a human representative when they desire. These success factors also hold for ‘traditional’ investment-focused robo-advisors. This allows successful existing players to expand their current proposition into insurance relatively easily.
Scope
- Robo-advisors will grow in popularity as younger generations begin to acquire more wealth.
- Being able to interact with a human when needed is critical to improving the usage of robo-advice.
- The gig economy presents a large opportunity for robo-advisors.
Reasons to Buy
- Identify the key trends shaping the robo-advice industry.
- Identify key players in the robo-advice space that are providing insurance solutions.
- Plan for the future to stay ahead of the competition.
Table of Contents
- Players
- Trends
- Industry Analysis
- Value Chain
- Companies
- Glossary
- Further Reading
- Appendix: Thematic Research Methodology
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- PensionBee
- Wealth Wizards
- Nutmeg
- Anorak
- Betterment
- SoFi
- Brolly
- wefox
- Catch
- Clark
- Moneyfarm
- Lufax
- Wealthify
- Aviva
- Ping An Insurance
- Personal Capital
- Ellevest
- Wealthsimple
- Vanguard
- SigFig
- TD Ameritrade
- Ladder
- Root Insurance
- Lemonade
- Direct Line
