Nowadays, modern technology-infused economy demands expertise in new areas to meet the customers’ expectations. Hence, brands need to upgrade themselves using innovative tools continually, reengineer their internal operating models and services for accelerating growth in long terms. To support this, technology investments are taking place at a frightening pace across financial services and insurance companies. While there is the digitalization of the sector happening slowly yet surely, there are new trends that can transform the insurance industry.
It is essential to pay attention to the evolving changes occurring in this sector as insurance is a significant proponent of a nation’s economy owing to the number of premiums it collects and the scale of investments for varied purposes. Further, it plays a crucial role in safeguarding personal and business risks. Given the fragile situation of the current pandemic, these are turbulent times for the industry. So let us have a closer looks at these trends that are expected to become mainstream:
Demand for Bite-sized insurance products: To address the millennial and gen Z customers, more simple forms of insurances are booming that cater to a specified issue. This includes laptop insurance, pet insurance, house content insurance, and others. These are easier for customers to understand and are hassle-free as the insurance providers have to deal only with particular relating issues when being claimed, thereby making the inspection process smooth. Also, these products are typically light on the pockets.
Contactless Services: Adopting modern technology culture is undoubtedly affecting the mindset of the people. The boom of the smartphone market led to disrupting the dynamics of the industry. As a result, people preferred easier, quicker, and secure options of digital servicing like payment apps. Not only that activities like banking, money transferring, lodging a complaint online have made the lives of users better. Plus, the advent of IoT will beef up the demand for contactless services.
Technology as an enabler: As per an article in the Business world, insurers are embracing technologies like AI and ML to ensure that there are continuous automation and simplification of the processes for getting insurance or a claim. Another example is of using video calling or images to complete the inspection process of the asset without the intervention of a physical inspector. At the backend, Data Lakes will grow into mainstream assets to increase efficiency, henceforth improving the customer journey.
Moreover, data-tasks will also be automated in an effort to ramp up productivity. According to Deloitte, more insurers are looking to bolster core systems, add capabilities, and enhance customer experience through artificial intelligence (AI), digitalization, new sales platforms, alternative product development, and other innovations.
Improving Customer Experience (CX): Customers hold the central stage in determining the success and effectiveness of the insurance industry. An effective CX strategy balances personalization, empowerment, and efficiency using a combination of human and digital solutions at every touchpoint throughout the customer journey. The policy must be flexible enough to accommodate a wide range of preferences.
Besides a significant amount of money is spent on the verifying process while settling an insurance claim. One of the solutions offered is letting them manage the claims process. This can be done by providing video and images at the First Notice of Loss (FNOL) by the customer who is in control of the claims process. This will not only reduce the number of minor cases but also instant payouts can easily be achieved autonomously and with better CX.