The insurance industry has been spectacularly slow at adopting technology even when the consumer are demanding that their process of buying and managing insurance change. Technological innovations can therefore be regarded as the new frontier for the insurance industry, as these new developments are seen as distancing themselves from the historical and typical business models used by insurers for their business.
Insurance has long been linked to frustration. From the slow process of subscription to the long experience of receiving a claim, to the lack of data and analytics used to customize and tailor the customer experience, insurance is ripe for disruption.
How to embrace technology to transform your agency
According to FinTech Developments in the Insurance Industry there are various drivers that are encouraging this change. The Internet of Things, which relates to the interconnectivity of devices that allow data to be collected and exchanged, has made it possible to collect more information about consumers. In turn, this enables insurers to improve their forecasts of current risks. This might provide incentive to the insurance agents for building better trust with their clients.
With an increasing amount of natural disasters and rising costs for insurance companies, how business has been done for decades simply doesn’t cut it anymore. In order to compete, companies in all industries, especially insurance, need to gain experience and make life easier and better with technology for their customers.
1. Reaching out to new clients
Technology enables insurers to be more intelligent and strategic in roping in new clients. From insurance aggregators to customer segmentation that use data to know which clients to reach, technology makes customer acquisition less of a shot in the dark and more strategic. This is shown with the growth of online insurers, especially given that millennials are twice as likely to purchase insurance online than other generations.
Digital technology and data provide insurers with an opportunity to better understand their customers. This means that they can price and better identify fraudulent claims.
2. Brand building
Social media plays an important role in branding and insurance companies now do not have to spend exorbitant amounts to create and maintain their brands-they use a fraction of the budget they used in the past to achieve the same goals by promoting and publicizing their brands on Facebook, Twitter, Instagram, Pinterest and other social media sites. The biggest advantage is that you can efficiently target top customers using marketing insight facilities and analytics tools that are often provided by the media portals.
3. Saving time
Insurance agents need to communicate and ask a lot many questions before they can give a clearance. One of the biggest hurdles faced by agents in the past was meeting a client at a particular location, or at a particular time and explaining the nitty-gritty of the policy.
This took a lot of time and agents had to travel a lot in order to ” close” customers and meet the target deadlines. Policies are now clearly explained on portals and interested visitors can communicate directly with agents using online chat tools and video conferencing facilities to investigate eligibility aspects, answer questions and facilitate the agent’s decision to sign up. In this way, agents can respond to many customers in a day and decide which customer should and should not be given the policy. Technology helps the subscription process to be easier and faster.
4. Reporting for Claims
The claims are often regarded as the place where insurers lose money, but with technology, claims can actually help to make money. Automotive insurers with consistent best- in- class experience generate 2- 4 times more growth and see 30 percent higher profits. Automation can reduce the cost of a claims journey by as must as 30%.
Technology can improve the whole process of claims. With the use of pre-populated claim forms and apps, customers can easily submit information without having to answer repeated questions. Technology also introduces new ways of interacting, such as texting agents that update status for customers. Even small things such as paying claims electronically instead of checking can make a difference and make life easier for customers.
A homeowner would file for a roof replacement after a hail storm in the traditional way of handling claims, and a claims adjuster would drive to their house and climb on the roof to measure the damage. With new technology, much of the risk is eliminated because insurers work with images and videos specialists.
It is typical that a customer never speaks twice with the same insurance company. The more often a customer talks with a person, the more frustrated they are with the claims process. Many companies incorporate live chat so that their customers can immediately receive answers via video chat or chat. Some agents even connect through FaceTime if a customer files a claim.
5. Increased Communication
Insurance is about building customer relationships. IOT and technology devices can combine up- to- date customer information to find out when customers have a new home, baby or driver. Staying on top of communication allows insurers to engage with customers more successfully and offer additional services.
Bigger companies tend to have more fragmented communication. Even large companies can target personalization and a smaller insurance company ‘s personalized touch. Big data can also be used to continually improve customer feedback.
Insurers should not underestimate the changes digital will bring to their industry and the substantial profits that are within their grasp if they are not afraid of the industry’s exciting future. Technology has the power to transform the insurance industry and offer new opportunities if only insurers take the risk and change the situation.
6. Achieve higher ROI
All businesses strive to achieve high ROIs to increase profits. Businesses generally borrow capital from banks and investors at high interest rates or raise the money through public limited issues and incorporations. Technology helps to reduce work capital dramatically and offers insurance companies a tremendous opportunity to achieve higher profit margins through online activities, electronic funds transfer and process automation, all of which are made possible using reliable technology.
There are many other significant advantages of using technology to boost sales by facilitating the availability of insurance policies and speeding up the subscription process for consumers. Reputed insurance companies supply consumers worldwide with affordable insurance packages and even help them in their bad times.