Digital transformation is a trending buzzword. From manufacturing to retail and healthcare to hospitality- all commercial industries are heading to embrace digitization for improving their business outcomes. The insurance industry is no exception to this. Although the digital transformation in the insurance industry has been slow, it is high time for insurers to boost technology use. The changing demands of insureds and market competition further necessitate the need for digitized operations. Artificial intelligence, predictive analytics, machine learning, live chat are the leading technologies redefining the insurance sector and will continue to do so for years to come.
Several live examples are reflecting the impact of digital transformation for betterment in the insurance sector. Streamlined operations support and enhanced customer interactions are just a few attributes that define the advantages of technology adoption in the insurance industry. Further, to assess the real impact, let us explore several benefits of digital transformation in the insurance industry.
Digital Transformation improves Operational Efficiency by 40%
The most notable benefit of digital transformation in insurance is improved efficiency. Prominent technologies such as AI, machine learning, and predictive analytics have accelerated every insurance operation aspect. Today, insurance companies can process claims at lightning speed, and companies can accomplish policy writings instantaneously. Plus, predictive analytics have helped in real-time customer service and personal needs. For example, the company sent customers searching for COVID hospitalization and insurance coverage details on doctors empanelled with the insurance company and nearby hospitals. There are live chat and digital bots to help customers avail themselves of the best services in less time.
Digital transformation and customer experience can increase customer satisfaction by 20-30% and economic gains by 20-50%.
A competitive digital transformation requires a connected ecosystem of carriers and InsurTechs, service providers, and other technology offerings. Insurers must quickly enable an "outside-in" model. Cross-industry parties partnering to provide end-to-end value for consumers will build a bouquet of products using an open approach. An imperative Business Model Transformation includes,
When a customer perceives true worth, such as a costly purchase or a new life event, they purchase insurance. Using distribution partners from other industries, such as aggregators, digital brokers, digital MGAs, finance, eCommerce, lifestyle retailer, hi-tech, sharing and gig economies, and more, insurers will improve this method.
Carriers will discuss important issues such as the form and launch of new goods to meet consumer demands at the right time. Insurance products that are "connected" will assist in providing a tangible customer experience.
Emerging players and InsurTechs are allowing previously unimaginable levels of business process orchestration and automation. To save money, insurers should integrate these third parties into their value chains.
Personalized solutions are the demand of today's customers. They desire to seek attention when and where they are. That's where digital transformation comes to help. Digital transformation delegates insurers with the tools they need to provide their customers with the services suited to their preferences. The technology solutions ensure that both customers and advisors enjoy a seamless, personalized experience. Customers can pay premiums, view policies, and file claims through a mobile app. Moreover, advisors can process all information through a unified portal. Insurers can also utilize digital transformation capabilities to personalize marketing efforts. The analytics and AI systems can customize marketing efforts for customers to reach their potential audience.
81% of organizations have resorted to agile transformation within the last three years.
Digital transformation is empowering insurers to become future-proof. Since these technologies will continue to evolve and create more opportunities, it will make insurance companies more agile. Various advanced technologies like AI, machine learning, and predictive analytics have already found their way through the insurance segment. Furthermore, these technologies will help insurers grow and adjust to upcoming new insurance technologies and processes.
TransformHub's Open Insurance Transformation approach is in a powerful position to help you transform your company into a future-ready enterprise. We can bring best-of-breed innovations thanks to our established collaborations with market leaders like 360F and Snowflakes. We've also helped several global insurers develop new products, expand distribution networks, and improve value.