The Dynamics Fuelling the Insurance Digital Transformation
The insurance industry is adopting the digital technologies at a faster pace than ever before. Insurers are transforming their traditional models as the survival is only possible by accepting the change in today's competitive market. More so, even customers are becoming modern and looking for easy tools to eliminate the hassle of policy purchasing. Being a customer-centric industry, insurers have to go with the flow to maintain a client base appropriately and serve better.
Digital transformation has drastically changed the landscape of the insurance industry. The Chief Officer Information (CIOs) across the insurance sector is motivating insurers to dive into the world of digitalization and amalgamate data with technology to offer more efficient and personalized services to clients, exceeding their expectations. According to recently released survey by Novarica on digital trends and small insurance business, 70% of small commercial insurance agencies anticipate digital investments to rise rapidly in the coming years.
Besides CIOs worldwide acceptance on growing importance of digital transformation, different analysis found that the definition of digital transformation is constantly changing at a great pace. All the digital insurance processes are shifting from straight-through processes to Omni channels, cognitive recognition stirred by informed advisors and completely digitized insurance back-office processes.
If you want aspire a successful digital transformation in your insurance business, we’ve outlined top dynamics ranking from least to important:
No.5 Adoption of E-signature-
Electronic Signatures in Global and National Commerce Art (ESIGN) legalized electronic signatures in 2000 and made it important as hand written signatures are. This gave businesses a number of opportunities to enhance their business operations. However, the impact of e-signatures in the insurance industry was unbelievable as insurers were able to breathe peacefully because insurers have to sign and take signatures of each client on different documents, which is a tedious task indeed. So it is advisable for insurance carriers, regardless of their size to adopt e-signatures to save on maximum time.
No.4 Collaboration of online content-
Well, collaboration of online content is an inevitable part of this digitized world-for agents as well as customers. To begin with agents, well, agents always desire for speedy quotations and issuance to hit on their sales, to expand customers’ flexibility for easy bill payments or endorsements that eventually reduces servicing costs. More so, agents want to be aware of customer activity to enhance their customer retention strategy.
On the other hand, customers seek for quick information from any device or location, which allows them to do self-initiate changes, file claims easily and get advice from different advisors whenever they want to. So we can say all these “desires” of customers and agents lead to online collaboration of content on different platforms- a key to digital insurance plan. Utilizing chatbots or other tools can help insurance carriers to grow rapidly by offering customers personalized services.
No.3 Work smartly with tools -
Work smartly means you should utilize smart tools and technologies that can help you enhance your workflow. There management, agents can focus on what they are master rather than spending time on non-core activities. This will eventually benefit your insurance agency with faster responses from customers, less lost opportunities and higher satisfaction.
No.2 Tailor-made communications-
Today’s modern customers are looking for personalized offers and solutions in order to pick the one that suits their need. However, such personalization has already entered in the personal lines insurance, but it is still standing at the commercial insurers. Therefore, it has become imperative for commercial insurers to pull customers with engaging contents that provide value to customers.
To put into practice bespoke digital processes and tailored communication, insurers must invest in different technology tools and analytics to increase their understanding and easily access to customer data and provide them services that they are seeking for.
No.1 Utilization of OCR software-
Optical Character Recognition (OCR) software hit the list or you can consider it as a first step to digital transformation. This is a vital tool for any business organization overwhelmed with the workload of manual data entry. You can instantly feel the change when applying OCR to business operations, resulting in reduced costs and improved services- just add on data capture feature to your OCR tool.
OCR can help you eliminate double keying, improving overall workflow and straight-through processing with ease. And if you use AI and OCR together it will help you to access the inaccessible data as well. So according to expert’s report, in the coming years, CIOs in the insurance firms will prioritize OCR software, AI and RPA (Robotic Process Automation).
Presently, many insurance carriers are already making investments in different technologies to drive digitalization in their business operations and be a part of this great phenomenon. They are welcoming the latest technologies with open hands and breaking the stereotypes. Besides the above-mentioned dynamics insurers should look into a bigger picture that will help them in a long run. Starvation for high-end technology and continues upgradation in such tools should never stop across the insurance industry in order to stay ahead of their competitors.