by • February 24, 2022
You have heard the terms digital transformation and cloud computing many times in the past decade, but now it has come to the insurance sector. Digital technologies have had a major effect on just about every industry from retail and manufacturing to healthcare and hospitality. The insurance industry is often slower to jump on any new trends. Insurance providers are set in tradition and don’t usually see much need to change. Digital transformation and blockchain strategies are not usually part of insurance technology.
However, the time has come for the digital transformation of the insurance industry. The pandemic was largely responsible for forcing insurance companies to modernize. With lock-downs and social distancing, insurance agents had to work from home and introduce new products over a webcam. They were no longer allowed to make house calls as they had been doing for over a hundred years. New initiatives had to be adopted. Business processes had to change. The insurance industry had to change. Digital transformation and social media was the answer.
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Although many aspects of the insurance industry have been digitized for many years, much of the work was still done with pen and paper, especially the underwriting of insurance policies. This has changed. To keep up with the demands of their clients and improve the customer experience, nearly all of their operations are now handled by automation and artificial intelligence. Any business, including startups wanting to stay competitive in the twenty-first century must be willing and able to meet with new and current customers where and when the client chooses, in real-time. Understanding customer behavior is more important than ever.
The driving force behind the digital transformation of the insurance industry is artificial intelligence, predictive analytics, data analytics, machine learning, mobile access, live chat, and automation. This has allowed the insurance business to step into the modern world and compete effectively.
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Just as with other industries, there are a vast number of ways of how digital transformation has changed the insurance industry. For example, operations are streamlined, interactions with customers are in real-time over the internet through platforms such as Zoom, customer needs are instantly addressed over live chat, the claims process is electronic and automatic, financial services are more efficient, insurance products are easier to access and brokers are able to aggregate client information for a smoother, more accurate outcome. However, the most profound impact digital transformation has had on the insurance market can be summed up in four categories: Efficiency, Personalization, Scalability, and Agility.
The most obvious benefit of going digital is efficiency. There is no doubt machines can work faster and more accurately than humans. Primarily controlled by artificial intelligence and automation, and other technologies such as the Internet of Things, advanced analytics and machine learning, nearly every process in the insurance industry has been optimized for speed and to better meet customer expectations.
Policyholders benefit from a faster claims process through mobile apps and underwriting takes much less time due to automation, getting insurance policies out to clients quicker. Digital transformation also greatly improves customer service because clients can access live chat and digital assistants around the clock – anytime they need help, help is available.
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Customers don’t want to be just a number on their insurance policy. They expect an exceptional customer experience and personalized attention. Competition is fierce. If you can’t fulfill the needs of your clients, someone else will gladly take your place. Your customers want to know that their needs are being met and that you care about them.
Insurance is a very personal thing and thats why it has been handled person-to-person for all these years. However, you can have digital transformation without losing that personal touch.
You have the latest technology at your fingertips to provide the best of everything your clients want – personalized service, security, and protection. Plus the convenience of checking the status of their insurance policy and claims online.
Digital transformation helps the insurance industry scale easier. Although much of the work was always done in the field, agents needed office space and the broker needed a home base of operations. Most agents now work from home, which saves you a lot of money in overhead. You can scale your business without adding extra office space or buying expensive technology. Cloud computing gives all of your agents instant access to everything they need to meet the client’s needs and access to iot to make life easier.
Customer benefits include self-service dashboards, mobile apps and wearables so they can easily access their insurance policies anytime they like.
Transforming to a digital world has helped insurers become more agile. Transporting data is instant. With just a few clicks an agent can complete a client application form and send it securely to the underwriting team. As the client base grows, there is no need for extra space or equipment. Your company is agile enough to grow with the times.
These new technologies, including digital transformation for insurance, are certain to evolve and you can be sure that with a solid technological foundation, your business will be able to grow right along with it without a hitch.
The whole world has embraced digital transformation and it is about time that the insurance industry has joined in, as well. APIs are critical for digital transformation for insurance. In addition to their architectural part in integrating apps, APIs and technological advancements empower you to implement new business strategies, agile and scalable business changes, unparalleled ecosystem connectivity, and superior customer relations.
These are some of the many benefits and reasons to undergo an insurance transformation and just a few ways that DreamFactory can help your insurance agency. Utilizing the power of APIs is key to helping you pursue successful insurance transformation. DreamFactory provides solutions to your API management and generation needs.
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As a seasoned content moderator with a keen eye for detail and a passion for upholding the highest standards of quality and integrity in all of their work, Spencer Nguyen brings a professional yet empathetic approach to every task.
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