We all know how digitization has changed the world around us in various ways by making major inroads into multiple industries. The same goes for the global insurance industry, which has been reaping the benefits of the digital environment in the recent past. The focus in this industry has been on two things, the development of insurtech, where digital distribution and data are kept in mind, and the adoption of insurtech, where the emphasis is on sales and marketing.
Even though the initial phase of development has been fairly slow, the second phase of adoption has seen considerable growth and that too in a short span of time. It is because of the emergence of a number of risk carriers who are ready to change the various aspects of the underlying insurance product and opt for digital tech to automate the value chain. As a result, it has seen a serious influx in the way the data is processed and sourced.
What is the biggest threat to traditional insurers?
The clear danger at present to traditional insurers is the carriers who are ready to take risks by bringing in various innovations in the industry to make customer-centric products. Since these insurance giants have the technology and resources to make use of the digital options to their advantage, they have a head-start over the incumbent insurers who are yet to take this step. They might not have had a huge advantage as of now but staying oblivious to the evident changes in the insurance environment can cost the traditional insurers a lot.
One of the key things to remember is that the adoption of digital techniques in the insurance industry is not just about making a few changes that will help you get the best solutions but it is also about revamping the whole system in most cases. You will have to grab the opportunity to get ahead of the competitors by investing in good digital platforms and software to get the ideal results.
However, the way you make the transition into the new phase is very important in terms of determining whether your adoption will reap the expected benefits or not. With more and more insurers taking this path, the scope of the whole industry going digital is quite high and it can very well happen within a decade.
Partnership is the key in the future
While many traditional insurers believe in developing their own tech in accordance with their existing system, some have already understood the fact that it is better to partner with insurtech companies and avail services in the form of their tools instead. In fact, many insurers have already started investing in such technologies and are seeing positive results, slowly but surely.
With the upcoming technological developments expected to be around the value chain system, one can expect to build ecosystems that can accommodate future technologies with ease. Hence, one can expect to build a robust and efficient system, and that too in a cost-effective manner. The biggest shift in such an approach is the fact that the focus will be on the customer this time rather than the technical aspects of the system. This will help you build a customer-centric insurance product, which is always the right option to pursue in the long run.
By partnering with such companies, you can launch new products, make customers happy, use existing data points and improve the practical experience, and built an efficient system that caters to everyone’s needs. This will also help you deliver high-speed customer service through relevant products.
Where should you start?
The major trends these days indicate that there will be many APIs and microservices architecture that can be used to mold the changes around the existing transactional legacy system. This is especially true for insurers who do not have the budget to make a complete overhaul of the system.
However, you need to keep certain things in mind while starting such a venture. You should find software that gives you interconnectivity options, enabling you to connect to other systems as well.
Furthermore, you need to create a system where customer interests are kept at the forefront and then use RPA (Robotic Process Automation) techniques to get the best results. This can help you achieve better interactions with the customer and harvest data in a more efficient way.
If you are looking for fast and reliable results, then you will have to rely on automated and digital systems. They will help you streamline the process in a better way and develop smart claims contract as well.
How can you start?
To start with, you need to have a clear picture of all the problems in your existing system and decide the available opportunities out there. It is important to ensure that you know the areas that can be automated and the ones that need manual attention. This demarcation can help you choose the best possible insurtech for your company.
You also need to decide what jobs can be outsourced and what needs to be settled internally. Since there are so many decisions to be taken, it is important that all the decisions are made from the board level and down, so that you get the best possible return of investments, with respect to the software you invest in.
Top platforms that you can take advantage of
- Atidot – It is a platform that does predictive analysis with the help of AI, ML, and big data and then provides deeper insights into the data in the system.
- eBaoTech – It works with multiple carriers, agents, and ecosystem players to develop connected insurance models across 30 different countries.
- Flamingo – This is a simple software that uses AI to improve the customer experience and thus increase the efficiency and drive growth.
- ClearCycle – It has a number of efficient disbursement systems that let you make the claim settlements and payments with ease in a completely automated way, thus making your insurance system faster and more reliable.
With every other industry going digital, it is time for traditional insurers as well to make the move in this direction. Integrating automated software in your insurance system can not only improve customer service but also improve the efficiency of your company’s workflow. To know more about such services, get in touch with ClearCycle that has been in the industry for over three decades.