Designing Security for All: Insurance Made Human.
Reimagining Insurance in the Gig Economy: A Design-Thinking Case Study
Project includes
Market Analysis
Data Synthesis
Business Model Innovation
User Research
UX Strategy
Client
EY
Duration
7 days
Tools
Post-its, Microsoft PowerPoint, Adobe XD
The Premise
As an innovation consultant, I thrive on using design-thinking methodologies. This approach was the cornerstone of my collaboration with EY on a case study for the Indian insurance industry. The project's premise was not just to analyze the existing market but to reimagine insurance solutions through the lens of design thinking, focusing on an empathetic understanding of user needs and innovative problem-solving. This provided a unique opportunity to delve into the industry's nuances and propose transformative strategies.
The Problem
A leading financial institution, a client of EY, is aiming to penetrate the Indian insurance market. The Indian insurance landscape is rapidly evolving, marked by new propositions and intense competition. The client, while eager to enter this bustling market, had not yet identified a specific target group. My task was to guide them through this labyrinth, identifying potential opportunity spaces for the next 3-5 years, crafting a compelling value proposition, ensuring a strong product-market fit, and developing a strategic approach, not just a project plan, but a comprehensive journey map to effectively launch their venture in this competitive arena.
The “How Might We” question for the client
Approach Plan
In tackling this project, my plan was to employ a design-thinking approach, strategically integrating both micro and macrocycles. The focus was on a rapid iteration to comprehensively understand the insurance sector. This iterative learning process was crucial for identifying key market patterns and unmet needs. Armed with this knowledge, I planned to develop a value proposition that precisely addresses these gaps. This proposition will then serve as the foundation for conceptualizing a viable product idea that aligns with the market demands and brings a fresh perspective to the industry.
Empathize
Embarking on this project, I faced a steep learning curve; my understanding of the insurance market was minimal. With only a week to deliver results, I plunged into intensive market research, gathering data from a variety of sources to build a comprehensive picture of the industry. Notably, I discovered that market penetration in FY 2021 was a mere 4.2%, leaving a vast majority of 95.8% of India's population without insurance coverage. The primary barriers were clear: a lack of awareness, misaligned product offerings, and a deep-rooted lack of trust. Moreover, the largely underserved segments included rural areas, tier 3 and 4 cities, low-income households, the informal sector, and notably, the younger generation – millennials onwards. This initial phase of empathizing with the market was crucial in setting the foundation for my subsequent analysis and recommendations.
The intrigue of the lack in market penetration, one of the standout data points
Synthesize
In synthesizing the data, I pinned all my gathered information on a wall, searching for patterns and insights. It became clear that the most promising demographic was the younger generation. India, with its significant youth population, is poised to see millennials and Gen Z dominate by 2030. This insight shaped my approach to design a product that builds trust with this emerging market. I chose microinsurance and InsurTech as the vehicles for this venture, given their lower capital requirements, high growth rates, and market permeability.
The key insight driving my value proposition came from a Deloitte 2019 study, revealing a strong preference among millennials and Gen Z for gig work over traditional 9-5 jobs. The solution crystallized into a community-based microinsurance platform, designed to be affordable, user-friendly, and tailored for the unique needs of the gig economy. This platform would leverage digital technology to enhance accessibility and convenience, ensuring a human-centered approach. For customer segments, I focused on content creators, freelance professionals, event workers, and home-based entrepreneurs, proposing relevant services like income protection and professional liability coverage.
The revenue model included a pay-as-you-go premium system, supplemented by commission-based partnerships and value-added services. Cost management would rely on a digital-first strategy, technology-driven operations, and economies of scale. The market penetration strategy encompassed targeted marketing, product differentiation, and community engagement. For risk management, I suggested dynamic risk assessment, strict regulatory compliance, and diversification of the insurance portfolio. Financial projections were to be based on key metrics like CLV and CAC. Finally, I underscored the importance of sustainability and social impact, advocating for environmental responsibility and a strong stance on social responsibility.
The distilled value proposition canvas
Way Forward
To transform "Designing Security for All: Insurance Made Human" into a tangible product, I propose a structured development roadmap. This begins with concept validation through market research and analysis. A pilot program is crucial for testing the product in real-world settings, followed by iterative refinement based on feedback. The scalability plan involves gradual expansion into broader markets and diverse customer segments. Strategic partnerships and collaborations will be sought for enhanced reach and expertise. A robust funding and investment strategy will support these phases. The long-term vision includes continuously evolving the product to align with market changes and technological advancements, ensuring sustainable growth and impact.
Reflections
Reflecting on the 'Designing Security for All: Insurance Made Human' project, it's been an enlightening journey through the realms of innovation and user-centric design. Embracing design thinking not only as a methodology but as a mindset, I delved into the complex insurance landscape with fresh eyes. The project underscored the importance of empathy in understanding user needs and the power of rapid iteration in conceptual development. It reinforced my belief in the transformative potential of design thinking in creating solutions that are not just commercially viable but also socially impactful. This project was a testament to the idea that thoughtful innovation can indeed drive meaningful change.
The Project Wall