Technology

Digitization Trends of Insurance Industry

Did you know, it took a pandemic to push insurers to catalyze their digitization process even faster.

Digital technology is changing the insurance landscape by providing a seamless user experience. The insurance industry grew by 17% in last years’ April-May, compared to the 9% of 2020. India predicts at least 40-50% growth in the same industry in the next five years. This article will discuss some of the essential factors of digitization of the insurance industry and the challenges and remedy of the implementation.

Why is the insurance industry moving to a digital platform

In the past few years, especially during the pandemic, every big or small industry has moved to the digital platform. The insurance industry is also not behind the race; instead, it has moved quite forward. Research shows that 70% of customers prefer online self-service. Moreover, online service saves a user’s time, energy and makes the process hassle-free compared to an end-to-end manual process. A comparison study between the traditional and digitized insurance process makes it easier to understand why going online.

Here are a few popular trends that the insurance industry is following:

Using a Human-Technology Hybrid Model

Clubbing the technology with human effort helps to provide a more personalized experience to the customers. Implementing AI or conversational Chatbots to web applications is one of the brightest examples of the mentioned scenario. The conversational Chatbots cut down the time spent, but it helps respond to the frequently answered questions. AI Chatbots can immediately redirect any unknown or complex query to the specific contact person so a human can take the process from where it gets stuck. Thus, the user experience gets better. LIC of India introduces virtual assistance called ‘LIC Mitra.’ National Insurance brought out NYRA. United India Insurance got the virtual assistant named ‘UNI Help.’

Using Predictive Analysis
Implementing Predictive Analysis and overlapping various technologies helps to improve accuracy in the business. Predictive Analysis can be helpful for risk assessment, policy administration, finding potential customers, etc.
Telematics
To simply put, Telematics is a technology that tracks vehicles with the GPS and OBD (Onboard Diagnostics) to plot their positions on a computerized map. Telematics can gather data from speed, location, accidents and more and thus is helpful while processing car insurance.
IoT
Not only do filmmakers or videographers use Drones, but drones’ usage for commercial purposes is increasing sharply. The insurance industry, too, took their business to the sky. The two primary points behind using the commercial drone for the insurance companies are better risk management through collecting accurate data and planning for future action. Based on that data insurance companies can achieve decreased functional expenses through better productivity and viability in claims arbitration, handling claims and client experience. These drones perform rooftop examinations and appraisals and then transmit the data to the cloud for inspection. Better view, a San Francisco based insurtech dedicated to involving drones for property reviews, has executed more than 6,000 housetop examinations in the last two years; the organization consented to an association arrangement with Loss Control 360 makes programming for insurance agencies and assessors.
Trends are changing the Insurance Industry
Digitization of the insurance industry is responsible for better UX apart from its business benefits. Some of the core aspects of these changes that offer better UX are as follows:
Streamlined Operation: Due to the online service, a user can buy a policy directly from the company’s website without needing a middleman. The process remains hassle-free and confidentiality prevails between the customer and the company.
Better Customer Interaction: For responding instantly to a customer, AI-driven systems are implemented, i.e., AI Chatbots. This helps for a better UX in a significant way as the customer doesn’t have to wait long before their query gets answered.
Automatic Claim Processing: With the help of automation, AI and machine learning, the claim process is automatic. It’s much easier and time-saving than claiming through a middleman.
Challenges in Digitization Conversion
Although digitization has accelerated, many companies are still not at the pace of moving to the digital platform ultimately. According to KPMG 2020 research, the following challenges are still hindering the conversion process.
Things to Keep in Mind before Digitization
Know your Customer: A thorough data investigation should be done before jumping into implementing something. It needs to understand who the potential customers are and according to those further steps should be taken.
Personalize the UX: Different customers have different requirements. A sixty-year-old person will have different needs than twenty years one. So, any company should provide personalized solutions individually.
Empathize with the Customers: It’s imperative to understand a customer’s pain points at the moment of the communication before suggesting any solution. In that case, the design should be interactive and robust. A data model should be prepared with the help of AI, which can gather data from chat and voice recognition and produce answers accordingly.
Final Thoughts
The future is promising for the Insurance Industry, and the COVID situation has just added some fuel to the flame. Most leading insurance companies have realized the urgency and are moving faster to implement an interactive digitized platform for their customers. There is no question that numerous insurers are strolling a barely recognizable difference between adjusting the need to contribute and the worries around costs. Notwithstanding, they all realize that their clients are now continuing without them. What’s more, they should buckle down to make up for the lost time. In this battle for endurance, pace matters.
About: About: Jay Anthony, Marketing Head at Techved Consulting adept at SEO and integrated marketing illustrated accross 15+ years of experience in related to roles. Strategic and innovation along with a passion for driving brand awareness and product performance.

The authored article is written by Jay Anthony and shared with Prittle Prattle News exclusively.

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