Digitisation of Insurance Industries

Automation

What is Digital Insurance?

With several terms and conditions, customers find it difficult to understand processes as simple as buying, renewing or raising a claim. Communication is the key here. With digitization, insurance companies can use tools such as websites, apps, email, social media, live chat, text and other digital channels to reach out to customers.

The way insurance companies operate through digital channels and depend heavily on technology to service an insurance policy is known as Digital Insurance. In effect, the insurance company utilizes the digital insurance platform to achieve its business model. Compared to the traditional insurance, digital insurance differs in the following ways:

  • Offer a customer-first business approach.
  • Offer a variety of channels through which customers can research, compare and buy insurance online without the help of middlemen or agents.
  • Offer simplified coverage options.
  • Claims, risk assessment and pricing are handled solely on modern and software platforms connected to new insurance-specific technologies.

Digital Trends in Insurance Industry

The use of the internet and mobile phones has witnessed tremendous growth in both India and across the world. And, the insurance industry is not far behind when it comes to harnessing digital technology to scale their business model and strive to offer a hassle-free experience. Digitization in the insurance industry is beginning to gather pace and is expected to be one of the mainstays of insurance companies in India. Below are some of the digital trends in the insurance industry:

Buying Insurance Online Hassle-Free

Buying insurance online has made the entire process easier for customers. Nearly every insurer is offering free online insurance quotes through which customers can choose and buy different types of digital insurance online. It eliminates the need to meet an insurance agent in person. It even eliminates the need to talk or enquire about an insurance product through the phone.

Artificial Intelligence (AI) and Automation For Faster Claims

While shopping for insurance policies, customers are looking for a personalised experience. Insurers are able to harness the results of AI to customise unique experiences for customers. Besides, the high-speed demand of modern customers is taken care of with the help of AI. Through this approach, insurers are able to improve the turn-around-time of claims and change the underwriting process. AI also enables insurers to access more accurate reports in a shorter span of time.

New Customised Products for Personalisation

Instead of a one-size-fits-all approach, insurers offer personalised or customised insurance products through the digital insurance process. Digitization of the insurance market will make on-demand, usage-based or telematics and all-in-one lifestyle products more viable to customers. From micro insurance, flexible coverage options and peer-to-peer products, insurance will become more relevant options in the long-term.

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Social Media

The role of social media in the insurance industry is breaking new grounds beyond traditional marketing strategies and intelligent advertisements. The process of communicating with customers is changing and social media is one of the reasons. This is also a platform for customers to research about the insurance companies, read reviews and even review a product.

Chatbots

Chatbots are digitally generated answers to frequently asked questions, making it easier for policyholders to get information faster than before. The internet has to a large extent reduced or bridged the gap when it comes to turn-around time for several transactions. And, AI chatbots are a good example of cutting down the time frame. Insurers are taking advantage of chatbots to increase their resources with the help of digital technology. It also offers the scope to get customers to navigate various insurance products and services.

Internet of Things (IoT)

IoT is the interconnected global web of digitally enabled devices which is propelling insurance companies to take up important initiatives. Through IoT, insurers have access to a huge amount of data and real-time data of policyholder’s lives. They use this research to create new innovations and opportunities in the insurance industry. While this may take time getting used to, insurance policyholders have opportunities to save some money which was not possible through the traditional method.

Advantages of Digital Insurance

Insurance companies understand the importance of cutting edge technology since customers want to know and trust they are associated with an insurance company that is utilising the latest technology and tools to give them the best possible experience. Embracing digital insurance solutions are the best way forward, and insurers, as well as policyholders, will quickly witness various advantages, such as:

Provides Safety

Unlike paper insurance policies, the risk of loss or damage to a policy is eliminated. The electronic form of the insurance policy is safe and can be accessed from anywhere and anytime by the policyholder. Also, digital insurance offers a safety net against mis-selling and fraud by brokers or distributors.

Convenience of Transacting

Modern customers require quick and instant resolution to their needs. Online transactions offer the ease of engaging in various insurance-related processes. Besides, online transactions can be done from home and at any time, offering convenience to customers. Also, by digitising the process related to buying, renewing and claims, the entire procedure is simplified, thereby enriching the customer’s overall experience.

Maintain Compliance and Regulatory

Any mis-selling by insurance agents or brokers is eliminated since customers have to go through the entire process of purchasing the insurance himself or herself directly with the insurance company. Customers have the option to compare several insurance companies and their products before selecting the right insurance coverage.

Brand Awareness

Digital marketing strives to educate customers about the insurance company’s products through their website which offers informative and quality content. Insurers can use their social media handles, apps, texts and email marketing to increase the brand awareness among potential customers.

Post-Sales Service

While the initial response during the purchase stage of an insurance policy might give customers the right experience, there is a general impression that customers are forgotten after a policy is sold. However, with digital insurance, post-sales service such as the process of raising a claim is hassle-free offering a paperless translation. Also, insurance companies are using their social media handles to receive feedback and complaints to resolve issues. This way they are able to provide a better post-sales service much faster compared to the traditional insurance companies.

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