Digital Transformation has impacted numerous industries in recent times and the insurance industry is no exception. Today more than ever before, the average customer is demanding better services from insurance companies. And it is in the best interest of a company to oblige and digitize various aspects for the business to remain relevant and competitive in the insurance market.
The new wave of technology - led by artificial intelligence, machine learning, predictive analysis, and so on - are compelling insurance companies to match pace with emerging customer demands and the need to remain competitive in a tough business environment.
This blog is an attempt to interest readers on how digital transformation is changing the insurance industry and is meant for the decision-makers, who do not seem to have clarity on embracing digital transformation for their insurance business. This blog seeks to look how digital transformation will become integral to the future of insurance industry:
Seamless Customer Journey: Today the customers can access insurance services over the internet with multiple devices, this combined with responsive web design is offering customers multiple touchpoints to remain updated on relevant information on insurance policies.
Presently, technology has made enough strides to ensure that as soon as the customer updates a new address on the insurance site, he/ she is immediately presented with pertinent questions about the new household and associated changes with regards to premiums, etc. This kind of robust back-end processing is emerging as the new differentiator among insurance companies to offer seamless journey to the end-user.
Personalization: As mentioned earlier, the customer today is much more demanding and expects nothing less than the best. This has prompted many companies to adopt a personalized customer approach, insurance is following suit. As a matter of fact, digitization is empowering insurers to provide excellent service to their customers without overextending their available resources.
Both artificial intelligence and machine learning are creating a seamless personalized experience for customers. Presently, customers are able to view personally relevant policies and file claims with an App, without having to wait on the phone with a company representative to process the information and expedite the process. Moreover, personalized marketing initiatives have become the norm due to robust data analytics and AI systems.
Higher Efficiency: New technologies such as AI, Machine Learning and Predictive analytics is making sure that every aspect of insurance is getting optimized for speed. Customer claims are getting processed in minimal time and the policy writing process is undergoing a sea change with the use of machine learning taking much less time than normal. Besides this, with the introduction of digital assistants’ customers are being offered help 24X7 without having to wait in a queue to get a query answered by a customer service agent.
Scalable Technology: Digitization or digital transformation is ensuring that the insurance industry becomes nimble and scalable at both the front and back end. In the past, insurance used to be associated with old fashioned technology and processes, well, not anymore. Today, on the customer-facing front, insurers are offering customers their service anywhere and anytime through self-service dashboards and mobile Apps. Further, on the backend, the latest and evolving technologies are helping brokers and insurers take more accurate and data-driven decisions on underwriting, policies, and new product offerings.
Foundation for Future Technology: The new wave of technology which includes AI, machine learning, blockchain, predictive analytics, and so on are going to remain relevant for many years down the line. The technological disruption in insurance we are witnessing today is just the beginning and is laying the foundation for the adoption of much more evolved technologies. However, today insurance as an industry is laying the foundation for the incorporation of all such future technologies which are likely to have far-reaching effects in shaping the industry altogether.
The present digital transformation in insurance is just the tip of the iceberg, as the technology has the potential to improve and enhance every business process within insurance. The creativity of the technologists associated with insurance is the only limiting factor here. The more open decision-makers remain towards technology, the more versatile the process of adoption would be. Going forward, customers and competition among insurance companies are likely to play a catalyzing role in accelerating digital transformation in insurance. This is likely to be an on-going process without an end in sight anytime soon.