InsurTech UX Design Challenges Faced By Companies
UX Design
May 23, 2024
6 mins read
InsurTech UX design challenges

Insurtech Website UX Design Challenges and Solutions

Insurtech UX challenges
Insurtech UX Challenges

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The insurance industry has grown multiple forces in the last decade. The technological intervention has injected the power of digitization and streamlined the paperwork and other complex procedures of insurance agencies. Enhanced user experience has played a pivotal role in translating the vision of streamlined operations into reality. However, knowing the intricacies and complexity of the Insurtech agencies and aligning them on the digital platform brings with it a certain set of challenges.


This blog delves into the intricate world of Insurtech UX design, exploring the major hurdles companies face and unpacking strategies to overcome them. By understanding these challenges and implementing effective solutions, Insurtech companies can build user-centric platforms that foster trust, engagement, and, ultimately, customer loyalty.


Understanding Insurtech UX

Understanding Insurech UX
Understanding Insurtech UX

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Insurance tech user experience is all about creating an intuitive interface that streamlines the entire process for the people interacting with the insurance products or services. The user experience emphasizes keeping the end user's preferences and requirements as the center point. Hence, it becomes increasingly important as more and more insurance businesses move online to adopt the best user experience practices in order to foster customer loyalty and ensure customer satisfaction. Here are some key points to understand Insurtech UX:


Importance: The insurance industry has been stereotyped as a home to complex products, jargon-filled policies, and slow claims processes. Insurtech UX aims to change this and bring new transformations to address these issues by simplifying the user journey at every touchpoint. This can lead to increased customer satisfaction, loyalty, and, ultimately, more sales for insurance companies.

Statistics: The global cyber insurance market has witnessed remarkable growth, with an increase of approximately 60% in the past two years.  This indicates a significant shift towards digital insurance solutions.

Benefits: There are several benefits to focusing on Insurtech UX. Here are some statistics that highlight the impact:

A study by Accenture found that 73% of customers are more likely to switch to an insurer that offers a superior digital experience.

A report by McKinsey & Company states that insurers with strong digital experiences can achieve 10-30% lower expense ratios.

Research suggests that Insurtech companies are prioritizing user-friendly interfaces and intuitive navigation to improve customer satisfaction.


Strategies for Success

UX strategies
UX Strategies

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Insurtech companies can implement a number of UX design strategies to create winning user experiences. Here are a few:

Deep User Research

The first step to proceed is to understand the end user. Deep user research, interviews, and  surveys will help understand the pain points of the target audience. It also helps highlight the scope of improvement and ensures that the design meets the user's expectations.

Prioritise Usability and Simplicity

Overboarding the Insurtech UX with jargon and terminologies can make the entire process more complicated. Consequently, the customer may lose interest. 

The objective is to create a user-friendly interface that is easy to navigate. The focus should be on using simplified language and avoiding jargon that makes it easy for the user to find appropriate information.


It all boils down to offering a customized solution to the consumers. Today, every company focuses on enhancing consumer experience, and one of the ways to achieve this is by offering tailored solutions. This could involve offering customized quotes, recommendations, and self-service options.


By focusing on offering tailored solutions to the consumer, the Insurtech companies can enhance the user experience. Moreover, a personalized approach also makes the consumer feel empowered. 

Insurtech UX insurance companies can create a more positive and efficient experience for their customers, which can lead to increased customer satisfaction, retention, and growth.


Example: Acko General Insurance: Acko provides a completely online insurance buying journey with a focus on simplicity and transparency. Their platform uses customer data to streamline quote generation and policy management. For example, if you're buying two-wheeler insurance, you might see add-on options for helmet cover or roadside assistance based on your profile.


Friction Points to Frictionless: How To Overcome The Insurtech UX Design Challenges 

Overcome Insurtech UX design challenges
Overcome The Insurtech UX Design Challenges

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Challenge #1: Building Trust in a Distrustful Industry

The insurance industry has been famous for being overly complex, overboard with jargon, and lacking transparency. Many a time, the user feels overburdened to go through the entire process of making an insurance claim. 

This also impacts the user experience. This inherent distrust translates into a challenge for the insurance tech companies who are trying to establish themselves as a credible alternative.


Solution: Transparency as a Cornerstone

Transparency should be the center point of Insurtech UX design. This means that the focus should be on using concise language to overcome complexity and keep things simple. 

The policy documents should be easily accessible and easy to understand. Adding interactive features like policy simulators can empower the user to personalize coverage options and visualize the cost. 

Moreover, adding customer testimonials and videos along with positive claims of settlement stories further helps build trust, which demonstrates the company’s commitment to user satisfaction.


Example: Bharti AXA Life Insurance: This traditional insurer has embraced InsureTech by launching a customer portal with personalized dashboards. Policyholders can access policy details, track claims, and even manage their health records (with consent) to potentially qualify for wellness discounts.


Challenge #2: Navigating the Complexity of Insurance Products

Insurance products can be tricky and sometimes complicated. With a wide range of coverage options, inclusions and exclusions, and varying levels of details, all this adds to the layer of complexities. This also presents a challenge for the user experience designer to make the entire digital insurance product easy to navigate and understand.

Solution: User-Centric Information Architecture and Personalization

A well-structured information architecture is key. Information should be categorized logically and presented in a hierarchical manner, allowing users to find what they need quickly and easily. Interactive elements like FAQs, tooltips, and glossaries can further enhance user comprehension.

Personalization plays a crucial role. By leveraging data and user behavior, Insurtech platforms can tailor information and product offerings to individual needs. This not only simplifies the decision-making process but also demonstrates a commitment to customer-centricity.


Example: Here's an example of how an Indian InsureTech company, Bajaj Finserv (a leading financial services provider), focuses on creating a simple user experience through UX design: Focus: Two-wheeler Insurance on Bajaj Finserv App

Challenges: Buying two-wheeler insurance can be complex, with the volume of jargon and terms, as well as the forms and hidden fees. The entire process can be overwhelming for the customer, but Bajaj Finserv tackles this with a simplified UX design in their app.

Simple User Experience Features:

  1. Quick Policy Renewal: the user can easily renew their insurance policy with just a few clicks. The app also has a provision for auto-fill, which takes the information from prior purchases and fills out the form. To save time and the tedious process of filling out the form.
  2. Visual Comparison of Plans: One of the notable changes seen is that the app now focuses on clear visuals that highlight the coverage and the price points.
  3. Vernacular Language Support: India is a diverse nation with a population that speaks different languages. To make the app easier to access, the Bajaj Finserv app offers insurance information in different languages.  
  4. Contextual Help and FAQs: To simplify the process for the customer, the app has a defined section which offers a clear explanation of all the insurance terms. Additionally the user can also access the frequently asked question section to get information on the queries.
  5. Seamless Integration with Payment: Bajaj Finserv app also offers different modes of payment thereby allowing the user to securely pay for their insurance plan through their choice of payment app.

By taking into account user experience design elements, Bajaj Finserv has been able to create an app that is easy to use and offers a simplified user experience.

Challenge #3: Balancing Self-Service and Human Touch

The growth of self-service options in the Insurtech industry would be challenging. Although it streamlines the process, it also creates a sense of isolation for the consumers who are looking for a personalized experience and support.

Solution: A Seamless Omnichannel Experience

The solution lies in creating a channel where we strike a balance between self-service and human touch. Offering multichannel communication avenues like life chat, chatbots, phone support, and email options can be helpful here.


Example: Bharti AXA Life Insurance: While offering a self-service customer portal for policy management and information access, Bharti AXA goes a step further. They have a network of insurance advisors who can be contacted for personalized consultations and support with complex situations like claim filing or policy modifications.


Challenge #4: Designing for Diverse User Needs and Tech Savvy

The Insurtech user base can be incredibly diverse, ranging from tech-savvy millennials comfortable with online platforms to risk-averse individuals who may prefer traditional face-to-face interactions. Designing an interface that caters to these varying levels of technical proficiency presents a significant challenge.

Solution: User Research and Accessibility Best Practices

Conducting user research is important to understand your target audience. This helps you discover your preferences and requirements. That helps in creating a platform that matches and resonates with the user. Implementing accessibility best practices like clear font sizes, strong color contrast, and keyboard navigation ensures inclusivity for users with disabilities.


Example: Digit Insurance - This digital-first insurer focuses on offering bite-sized, customizable insurance plans. This caters to users who may not need comprehensive coverage or may have specific needs that traditional plans don't address. Additionally, their mobile app offers a gamified learning experience where users can earn rewards for watching explainer videos and completing quizzes on insurance concepts. This caters to younger users who prefer an engaging way to learn about insurance.


Challenge #5: Data Security and Privacy Concerns

The insurance industry is flooded with information. With the vast volume of data, data security and confidentiality become a prime concern. This also becomes a challenge for the UX designers.

Solution: Transparency and User Control

When it comes to digital platforms, transparency is non-negotiable. Every platform should offer optimum data security and confidentiality. Implementing strong security measures and adhering to data privacy regulations like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) is essential to build trust and mitigate user concerns.

Example: Lemonade - This US-based InsureTech company is known for its commitment to transparency and user control. Their platform provides clear explanations of data usage and offers users easy access to their personal information. They also prioritize data minimization and only collect what's essential for processing claims and managing policies.

Conclusion: The Human Touch in a Digital World

Technology is going, and its intervention across different industries is inevitable. The Insurtech industry is no different. However, striking a balance between digitization and a human touch can help in offering superior services.


For Insurtech companies, it all boils down to creating a premium user experience for the customer. Having a UX design agency like Alien Design shoulder the responsibility of creating such platforms will help you deliver the best user experience to your customers without compromising on security.

A solution-driven person with a keen interest in solving problems in digital products through designing. I have worked with 15+ clients in successfully delivering digital products such as Saint-Gobain, HDFC, elgi Ultra, LuLu Group, IIFL, Stockal etc.. worked in 10+ digital products across domains such as Network security, Fin-tech, E-commerce, Healthcare, Recruitment, Real estate etc.. Research, Ideation, Wireframing, Designing, Prototyping, testing and delivery are my bread and butter.

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