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Digital Transformation & Innovation in Insurance & rise of Insurtech
The brand and product-centric insurance industry is confronting a massive transformation in the way it conduct its business. The Coronavirus disease (COVID-19) has propelled the adoption of new-age innovation and transformation from being a great idea to necessity for all organizations in the insurance space. With a sharp rise in disease numbers, trends such as purchase and issuance of policies through online channels, digital delivery of documents, the collection of different data information, and its analytics, faster claims processing, etc. have made rapid digital transformation and continuous innovation in insurance sector, the only way to meet this rise in demand head-on. All these factors are reshaping the current and future state of the insurance industry and therefore has given rise to adoption of digital transformation in insurance industry and rise of insurtech.
How technology can help digitize the insurance space to ensure a smooth streamlined customer experience?
According to McKinsey research, more than $10 billion has been invested into InsurTech since 2012.
On an average people own 2-3 devices and engage with apps, through different social media platforms. The aim should be to provide enhanced, smooth, hassle-free multi-channel customized customer experience when they go for online insurance policy shopping. The general trend around shows that the product offerings of the company are as important as the experience the company provides.
Privacy and protection of customers data: Having appropriate security measures like Robotics has driven threat management, security risks, and monitoring data analytics which helps in building strong security foundations and overcome any data challenges.
Provide customers targeted solutions: Customers look for choices and recommendations according to their needs. They need someone to help them in identifying their needs and guide them in their buying process. Offering simple, customized products and offerings for different segments of customers with default/easy-to-understand options helps in the customer journey roadmap.
Utilize AI Chatbots: By utilizing artificial intelligence with chatbots (deploying conversational AI) can help a client through policy application or claims process, which saves up resources, time, and money spent on handling such complex issues.
Integrating recommended products through mobile apps provides convenient access just a touch away. Effective use of data can help customers being offered recommendations and effectively handles all concerns/issues related to policy and insurance claims.
Implementing continuous automation: Internet of Things (IoT), predictive data models are technical capabilities that can be used to boost customer experience and journey through the insurance process cycle.
Digital transformation should be a basic part of your business strategy. It is the growth accelerator for the ever-changing business with time. It paves the way agile and dynamic plans of action that empower organizations to upgrade their productivity, exactness, cost of assets, and give a customized experience to their customers.
What are the areas in which insurance companies can benefit from innovation and transformation and stay ahead from rapid changes around?
Insurance Data Analytics with Artificial Intelligence:
Insurance data analytics answers all these questions. It takes real-time decisions, automates data points to meet customer's needs. Advanced predictive analytics techniques can help leverage information from data that would be missed with direct human intervention.
AI based Risk profiling, behavior patterns, customized customer scenarios help in presenting and capturing warning signs which can be used to make decisions in trigger-based events. The use of IoT devices can help in the gathering of data from personalized insurance products like fitness trackers which can present findings for real-time health data points and can help in a better understanding of customer preferences.
Conversational AI (chatbots) can help in providing better service to customers.According to Forbes, more than 50% of all searches by 2020 will be voice-driven.Instant and effective out of office services can be provided using chatbots to drive customer-centricity. Insurance quotations, scheduling of payments, questions about the claims process, adjustments in policies can be learned by chatbots and presented as a touchpoint to customers hassle-free.
Fraud Detection and Prevention can be handled by deep anomaly detection: analyze claim forms and build up a model around it which can be further applied to large data sets. Tracking down suspicious activity like high claims can help scale down large scale frauds. Sifting of claims history data points can be done in seconds using the artificial intelligence which can help tremendously in reducing the load of the insurance agents. You can read our blog on Fraud Detection for more details.
AI-based risk assessments can give insurers real-time insights. RPA can dissect the case history of reports from past years and give the bits of knowledge dependent on past misfortunes. RPA in insurance automation can help in streamlining claims processing, non-invasive compatibility, can help improve regulatory compliances and with AI, ML cognitive capability higher efficiency and scaling can be achieved at a lower cost.
The rapid digital transformation trends and technologies discussed above are showing how they are reshaping the present and the future state of the industry. With the pandemic to be around for a bit more time, organizations that wish to stay in today’s competitive marketplace must adapt and reach out to the customers when and where they need them using intelligent, digitally disruptive insurance platforms powered by AI, ML, and Data Analytics that will help insurers in years to come.
At NSEIT, we provide bespoke technological solution to insurance players powered by our deep domain expertise in the field of intelligence of AI, ML, and predictive analytics. Our digital solutions help insurers create the features, functionalities, and applications they need to stay competitive in this market. If you would like to learn more about how NSEIT can help with your customer insurance solutions, please reach out to our team at email@example.com
Assistant Manager, Presales and Solutioning
Shikhar is a part of the Presales and Alliance team at NSEIT - working with senior leadership on identifying and growing the strategic alliances in digital transformation practices disrupting the Banking, Financial Services, and Insurance space. He’s an MBA from the Great Lakes Institute of Management, Chennai, and takes a keen interest in new-age digital and analytics developments.
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