The Insurance Industry has not seen much changes for decades but the digital transformation came with ample of opportunities for insurance companies. With the digitization, the customers need and expectations are changing and the way of delivering values is also changing.
The main aim of insurance companies is accessing risks involved, collect premium from customers and pay claims in case of losses occurred. Recently industry came across many digital revolutions like online sales technology, Internet of Things, Machine learning, data analytics, virtual reality, block chain technology and many more.
These technologies will be blessings in terms of satisfied customer, lower cost, high growth to the companies. The digital transformation has forces companies to rethink and redesign the whole process starting from policy design to customer registration to providing claims. Redefining the whole process with digitization will result in changed cost and revenue structure.
A study by Google and Bain shows that adoption of these technologies in Germany leads to increase in around 28% in its revenue and reduce the administrative cost by almost 72%. Pioneering these technologies will provide the company competitive edge over those who are not leveraging its benefit in terms of efficiency and effectiveness.
Digital revolution leads to triple benefits:
In the age of digital revolution, customers expectation has changed. Now, they want one window clearance for all the procedure, simple and transparent process and want to spend less time. With these technologies, companies are able to offer flexible products and services, all online procedure and reduced time and cost of processing registration and claims. In Australia, a consumer can get his/her product insured only by clicking a snap of it from mobile phone and company with the use of technology and bug data can offer relevant policies. Similarly, registration and claims will be addressed.
Besides developing customer facing technology, many companies believe that transforming the whole insurance value chain will lower the cost starting from underwriting commission to claim management. With the help of data analytics, the insurer can get accurate feedback about the customer needs and patterns. So, company can develop more customized policy, charge fair premium and reduces the fraudulent claims. It also ensures low cost of proceedings as the online procedure eliminate intermediaries.
Using online channels to create awareness and sale insurance policies reduce the time and effort and offer more convenient and transparent process. This ensure happy and satisfied customers. Using data analytics insurer can easily identify the need gap and develop more customize policies. This helps to meet the customer needs in more efficient manner and provide lots of growth opportunities to the company.
Digitization leads to improve customer services, faster processing times, reduce cost of insurance value chain, more satisfied customers. These all drives the profitability and growth of business and results in market share.