The insurance industry is selling people their peace of mind. They’re making small payments when they don’t have to so that the potential disaster doesn’t ruin them if it finally occurs. These are the payments that both the insurance agency and the person getting the insurance hope will never have to be cashed out.
Now, with global digital transformation, the insurance industry is making large steps towards embracing all the latest tech trends. What does this mean for the industry and what kind of change can we expect in the future? What are some of the benefits of insurance transformation for the insurance businesses? What does it do for the customer? Let’s find out!
- Customer service efficiency
There are several ways for the insurance industry to benefit from the rapid digital transition. The majority of them is the fact that clients get to be more self-reliant.
Checking claim status
One of the most annoying tasks that your customer service representatives will have to deal with is answer menial tasks regarding the claim status. Sure, people are concerned and they have the right to be. Moreover, their satisfaction often depends on you sating their curiosity. However, wouldn’t it be better if they could check it on their own?
Resolving simplest disputes
Some of the simplest problems and disputes can be handled automatically, without any involvement of your employees. This allows them to focus on the more complex tasks which cannot be resolved without them. The benefits of this are even greater because now your staff members have more time to focus on these tasks.
Applying for insurance policies
Applying for insurance policies is usually a simple bureaucratic procedure and there’s no reason why the form cannot be filled online. It’s simpler, quicker and it takes a tremendous amount of workload off your regular staff. This is one of the most necessary aspects of insurance technology that you need to enforce right away.
Filing the claim
If the claim is relatively simple, chances are that the applicant can fill and file it on their own. An online application is the most efficient way to handle these issues, the biggest concern is the matter of security. The person filing the claim is often asked to submit sensitive personal information.
Key takeaways
Overall, allowing the self-service feature is a game-changer in the insurance industry. It helps relieve your staff and gives them an opportunity to focus on the quality of service instead of just chasing the norm.
- Mandatory move
Even some processes that were doable in person in the past will have to change due to the COVID-19 pandemic. In other words, digitalization is not even an optional move. It’s something that simply has to be done and it has to be done now.
This is the case in a lot of industries. You see, while there were tools for remote work already out there, the majority of industries preferred to do things the old way. Now that they were forced to try this new way, some of them have finally realized its advantages. This means that they won’t go back to the old model even when it’s safe to do once again. This will likely be the case with the insurance industry, as well.
- Big data analysis
The insurance industry is heavily focused on the ability to predict the accident. Now, mathematics and statistics are powerful arts and they are sometimes able to predict even the most unforeseeable of events. It all comes down to the power of the algorithm and have a large enough sample to research. Both of these things are possible through present-day technology. First of all, with the help of big data, you will have access to an unparalleled number of examples, instances, and outcomes. AI-powered processing tools with analytical capability can do all the rest.
- Vendor partnerships
Keep in mind that the insurance industry doesn’t exist in a vacuum and on its own. It’s a complex industry that relies on partners in various other fields. Insurance companies collaborate with inspectors, statisticians, and manufacturing experts. They also consult medical experts, legal experts, accountants, etc. The more factors they have available, the more likely they are to make the right estimate. Well, the availability and use of digital tools make all of this easier.
- Marketing
One thing you need to understand about the insurance industry is that it’s a highly competitive field. For this very reason, you need to be ready to leap onto every opportunity to get a competitive edge. Even the biggest insurance agencies can learn a lot from the mistakes that small businesses and startups are making in digital marketing. Keep in mind that the fact that your clients can apply online and do the competitors’ comparison in a matter of minutes changes everything. Therefore, the role of marketing is more vital than ever.
In conclusion
At the end of the day, the insurance industry already relies on technology, and making this final step into the insurance industry doesn’t seem that far off. Providing your clients with online tools that they can use for self-service can relieve your customer service, while the rest of the benefits tend to make you more efficient when it comes to the functions of your agency. Most importantly, in 2021, digital transformation is inevitable. This means that understanding why is paramount and questioning whether you should be seen as quite absurd, to begin with.