As insurance executives, you are constantly striving to meet the evolving needs of a digitally-savvy customer base while addressing the persistent challenge of financial inclusion. The good news is that you can leverage fintech solutions to bridge the digital divide and enhance financial inclusion. Here are six ways you can do it:

1. Offer tailored digital insurance options: Insurtech solutions enable insurers to offer simplified and cost-effective insurance products, making them more accessible to individuals who were previously excluded from traditional insurance markets. By providing digital insurance options tailored to the needs of underserved communities, insurers can enhance accessibility and extend insurance services to populations with limited access.

2. Utilize innovative distribution channels: Insurtech facilitates innovative distribution channels, ensuring that insurance products reach remote and marginalized populations. By leveraging technology solutions, insurers can design and offer products that are easier to understand and purchase. For example, a property policy may have historically required physical inspections, but now that same information might be available directly from public or private third party databases.

3. Leverage advanced technology solutions: Insurtech solutions enable insurers to utilize advanced technology solutions to enhance customer experiences. By identifying the kinds of policies that can make a difference in underserved regions and utilizing the technologies, platforms, and analytics that are available in the marketplace today, insurers can make bigger inroads into inclusion across all socio-economic groups.

4. Embed products to enhance accessibility and family wellbeing: Technology simplifies insurance, aiding inclusion, particularly in underserved regions, with embedded products enhancing accessibility and family wellbeing. By increasing embedded insurers products, insurers can make insurance more accessible in some regions and aid typical demographics that might previously forego vital protection products to support the wellbeing of them and their families.

5. Accurately assess flood risk: For flood insurance specifically, the gap between the number of homeowners exposed to some level of flood risk and the number of homeowners who have flood insurance is vast. To date, only five per cent of homes in the US and 30 per cent of homes in FEMA-designated high-risk flood zones have flood coverage even though 99 per cent of US counties are impacted by flooding. By highlighting the role of data in accurately assessing flood risk and facilitating insurers’ adaptation to evolving risks, insurers can address the significant gap in flood insurance coverage.

6. Consider parametric insurance: Finally, consider parametric insurance as a solution to bridge the digital divide and enhance financial inclusion. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

By leveraging fintech solutions, insurers can bridge the digital divide and extend financial services to underserved communities. To learn more about how insurers are leveraging fintech solutions to bridge the digital divide, check out this article from The Fintech Times. And if you’re interested in developing parametric insurance for your case, get in touch with Riskwolf today.