Ekonomi.kosongin.com – The world is changing, digitally. We are heading towards an era of reduced human intervention. Rapidly evolving technology has brought great disruption to your digital platforms. We see self-driving cars, contactless payments and chatbots telling people how to manage their wealth and investments.
Netflix, Uber, Ola, Amazon and many other ideas have changed their industry segments forever with seemingly effective yet simple ideas. The insurance industry is embracing digital transformation in a variety of ways to mitigate the complex challenges it faces in the consumer, regulatory and digital landscape.
Global leaders in the insurance industry are developing digital enterprise portals built for the needs of the future. They cover meeting future demands with predictive analytics, product financial performance reports and plans to provide an overview of all micro and macro indicators of the insurance business.
People are now using their devices to upload documents, make claims, use mobile apps for payments, and receive reminders and updates on their insurance policies. As the world embraces mobility, the insurance industry must embrace digital innovation.
The modern consumer engages with insurance companies in a variety of channels. They research, recommend, share and make purchasing decisions through omnichannel apps. Digital insurance providers need to incorporate all the key components that can drive customer engagement at multiple levels to ensure success.
Insurers can seamlessly transform into digital insurance providers with a phased roadmap. They can assess their current situation, systems and infrastructure to plan which processes and parts of the business will move into the digital landscape. This helps prioritize investments and build a digital workplace built for future needs.
Long-term evolution with short-term value addition is the most effective strategy for the insurance industry, driving the digital transformation strategy in three main phases, according to its capabilities.
Recent research by Deloitte urged the insurance industry to digitally transform its operations. Of the users surveyed, 7 out of 10 insurers have started implementing various digital strategies.
Research shows that there is an overall 30% improvement in the underwriting process since they do the entire process online. Net income increased 45% YoY and EBITDA increased 28%. Research strongly shows that the insurance industry is moving its business processes and operations online with great results.
After studying a lot of research and talking to many industry leaders, we’ve compiled a list of trends that could come true in 2019.
Portals and interconnected systems: Communication is fundamental in digital business. The insurance industry has implemented partner portals, corporate portals and intranet portals. There will be efforts to consolidate everything onto a single platform, moving away from different legacy technologies to create an omnichannel digital ecosystem.
Self-service dashboard: Seeing all the information from the top view is very important in decision making. Customers and partners will greatly benefit from getting an overview of your performance, policies, pricing, due dates, and payment dates. Getting all the important information in one place will be an integral part of the insurer’s system.
Compare and Buy: Consumers will move online to make better purchasing decisions by comparing policies across multiple insurance portals. This will allow them to understand the terms, conditions, pricing and many other details before making a final decision on your life, health care, auto or insurance policy. This is where the insurer’s mobility solutions will be the catalyst for increased revenue and customer retention.
Seamless claims management: Consumers take photos, upload documents and choose their respective policies to make claims and insurance providers scan and filter documents to resolve these claims. The entire process of preparing and resolving insurance claims will be online.
Cloud Computing: The future is in the cloud. In the survey, 80% of insurance providers agree that they are moving some of their business functions to the cloud or have moved to cloud storage.
Big Data and Analytics: With more and more users going online to purchase insurance policies, insurers will be able to leverage this vast amount of data to understand consumer needs and adapt their policies to meet them. With advanced analytics, they will be able to predict insurance policy types, claims management and customer profiles to ensure complete transparency.
Development method: Most IT companies choose to develop their software using agile methods. More and more companies driving digital transformation are using DevOps as their preferred application development method.
IoT and InsurTech: The insurance industry applies beacons and GPS tracking to cars, industrial vehicles, and many other instruments to monitor their usage. InsurTech (Insurance Technology) will help insurers understand their usage and record their activities to create customized insurance products and services for individual policyholders.
AI improvements: Automated chatbots serving as advisors will become more common. They will even begin advising select consumers on different policies based on their past purchases and future requirements. We may even see some robotics in the physical verification of claims settlement, but with limited success as it is still at an early stage. But artificial intelligence as a whole will improve in the coming days.
Wearable devices: These have the most potential and far-reaching effects in the insurance industry. Smart devices like iWatch, fitness trackers and other monitors track user activity and health in real time with mobile apps. This allows insurance companies to modify their insurance policies to accommodate the needs of individual users depending on their health.