What is Digital Transformation?
Now, as you know, every day we advance in terms of technology. Every day, more and more people get on this bandwagon of new technology. Digital transformation in Insurance is primarily using this influx of new technology to keep your business or service relevant like insurance fraud detection with AI and so on. You use the latest technology, like cloud computing, to solve problems by modifying existing procedures or creating new ones. And thus, you make it easier for your consumers to access your services like booking.
How it’s done and what are its benefits:
I presume that at this point, you’re wondering why everyone isn’t doing this. Well, most companies that have tried to get into this will tell you that it’s a lot harder than it sounds.
The three broad aspects that need to be covered are as follows:
First, narrow in on the elements that need to be digitally transformed.
Then, strategize. Look into how the selected aspect can be worked on using available resources.
Finally, adopt. This is where you apply your findings and put out the digitally transformed aspect of your business.
Now as daunting, this may seem, digital transformation has its fair share of benefits.
With Digital Transformation, a significant part of a business that’s improved is the relation between a company and its clients. With the ease of access and more relevant technology, customer satisfaction is easier to maintain. It allows for greater reach and higher client conversions. It allows the creation of digital products and services and even opens the door to globalization.
Why is this Relevant for Insurance Companies?
One may wonder why this concept is relevant to insurance firms. For an Insurance firm, calculating risks and premiums are a vital component of their functioning. Now, if these processes could be done with modern technology like data analytics tools and machine learning, the risks would be better predicted, and the premiums required would be more accurately calculated.
Internet of Things and Artificial Intelligence can be used to catch insurance fraud. This would save firms a lot of money.
Taking data from fitness trackers like Fitbit and other wearables will allow a more realistic view of clients while reviewing their health insurance premiums.
IoT can be used to track driving patterns, and it can be used to decide premiums for vehicular insurance.
Insurance outsourcing has aided insurance firms by reducing costs. By outsourcing to Insurance BPOs, Insurance firms have streamlined a variety of processes like Policy management, Commission management, Claims management, Financial reporting, Acquisition, & accounting for insurance business and Underwriting.
Insurance BPOs have made customer service much more streamlined. They’ve enabled quick response to insurance claims, and with operatives trained to close applications quickly, insurance firms can get more efficiency. BPOs have been used to attract customers by selling policies in various ways. In essence, Insurance BPOs can be used to reduce costs and increase profits.
Using technology, insurers have been able to cut costs. Firms also predict higher employee retention and customer loyalty with higher levels of digital transformation in insurance.
The technologies that are trending at the moment:
Though presently, Cloud-based services and technologies are making the biggest waves, Artificial intelligence and blockchain technology are predicted to hold great importance in the years to come.
Machine learning and Artificial Intelligence will benefit firms by enhancing customer service and customer experience.
But to get there, firms need to step out of their legacy technologies. Unless modern technology is fully embraced, there is no way that the future can be achieved.
So, in conclusion, by using these methods, insurance firms can find themselves benefitting in many ways. Not only do they make work for the firms easier and much more efficient, but they also make the firm’s services much more accessible to their clients. It leaves firms with satisfied customers which always leads to a firm’s growth. Though implementation may seem like quite a herculean task, once a system is implemented, the firm stands to gain a lot. Hence, Digital Transformation is a step in the right direction, a step that all insurance firms must take sooner rather than later.