© Copyright Our Wall
InsurTechs need to keep pace with the demand they have created through sustainable unit economics and wise risk management. By focusing first on growth and then on underwriting, the insurtech 1.0 wave essentially flowed in the wrong direction. According to <a href=https://beinsure.com/>Beinsure Media</a>, there is plenty of time to reverse the tide — consumers’ enormous appetite for convenient, modern insurance products has only been whet.
So what does focusing on next-generation underwriting really look like, and how should you build upon it?
As insurtech companies encroach on the wider insurance industry, a number of impressive startups are disrupting the space and attracting fresh talent to the marketplace. They position themselves as shining examples of value-for-money, swift-service competitors in sectors that have previously proven to be slow and stodgy. Traditional insurers that have not adapted to going digital first are under pressure. Their sales are currently collapsing. A sudden switch to the digital world is often not possible.
Insurtechs are the driving force of this evolution, and investors are taking note. Venture capital (VC) investment has grown faster than the more mature private-equity or public-markets funding. In 2023 total amount of VC invested in insurtechs surpassed $16 billion, $14 billion in 2022.
When it comes to creating content that attracts and engages, Beinsure Media Phill has a unique approach that sets him apart – curiosity about why we do what we do, also known as buyer psychology. His interest in the field sparked his journey as a creator, so he understands how to apply psychological principles to content creation. "You have to get into the consumer's head, understand their pain points, and then offer a solution that they didn't even know they needed," Phill says.
Phill believes that creating an emotional connection with the audience is crucial. "People don't just buy products – they buy feelings. If you can make someone feel seen or understood, you've won half the battle," he explains. This emotional resonance is what turns casual viewers into loyal followers. One principle that he uses to boost this connection with his audience is the “labor illusion” principle – giving a behind-the-scenes look at how much work went into what you’ve created to add authenticity and increase the work’s perceived value.
“Making something look "too easy" can hurt your content performance. It's why artists and creators often share their process or the "making of" their work. If people think you just snapped your fingers and something amazing appeared, they're less likely to appreciate the skill and effort that went into it. It's a fine balance, though. You don't want to make your process look so complicated that people think they could never achieve what you have, but you do want to show enough to earn their respect and admiration,” he explains.
Creating a sense of urgency or exclusivity can drive engagement like nothing else," he says. Whether it's a limited-time offer or exclusive content, Phill leverages FOMO to keep his audience coming back for more.
Not all his experiments with psychology principles have succeeded, though, as he shared an interesting story about an experiment he ran with the “curiosity gap” principle on TikTok. He found that people might be super engaged on one platform but unwilling to jump to another, even if they're intrigued. It's a lesson in understanding the user journey and the commitment level required at each step. On TikTok, people are scrolling quickly and consuming content in bite-sized pieces. Asking them to switch to a 20-minute podcast is a big leap.
The Wall