Insurance is the process whereby entities are being protected against financial losses. This process is similar to risk management. Every family, individual, organization, or entity, has one form of insurance or the other. This is to the end of being prepared for unforeseen circumstances. There are always two parties involved in insurance, the insurer and the insured. The insurer is the one who protects an entity, while the insured is one who pays to be protected. However, the process connecting these two persons has changed over time, thanks to the advent of technology and digitalization.
Digital insurance explained
From the start of the century, there has been immense development in the digital ecosystem, and this development is sweeping across many industries. Various industries, ranging from technology, education, ecommerce, entertainment, etc. have felt the change. Insurance as an industry is not left out, as it is a major priority. For insurance companies, this is not a deal of trying to adopt something new or trying to employ the use of some external processes. It is a total overhaul of the entire system.
The digital evolution of the world would require the insurance industry to create an innovative approach to business. The innovative model should, however, be one that is focused on meeting the needs of consumers, connecting the brand more to people, have real-time access to insightful data. The system should also be flexible and able to adopt innovative technology while creating services that keep people coming. Once the system or model is devoid of this, it will never scale.
Digital insurance is the future of the insurance company, one that every insurance company should prioritize.
Impact of Artificial intelligence in digital transformation
Artificial intelligence is an arm of technology that is causing sweeping waves across various industries. And insurance is one industry with lots of potential benefit from AI. There are so many processes and areas in the insurance industry that can benefit from AI.
Some processes in the insurance industry have been automated with the use of AI. Procedures such as claim management and underwriting are being performed by AI assisted systems. These processes are those with the requirement of analyzing and retrieving vast amount is data. With the adoption of AI for some procedures, insurance companies have been able to cut down cost. There is also a drastic reduction in processing time and increased efficiency.
Insurance companies with AI running processes have also been able to up the standard and quality of their customer experience. AI is so helpful in the area of claim management, as it detects false claims better, hence saving the insurance company from scandalous individuals. Fraudulent claims have plagued the insurance industry for years
The use of AI-powered solutions in the insurance industry, to tackle underwriting processes has taken an upsurge in the past few years. This software is capable of detecting misalignments that are incorporated into various policies and helps in the drastic reduction of risk.
Main important factors in Digital Insurance
There are various pertinent factors in the evolution of digital insurance. They form the basis on which the future of insurance would depend.
The core – Digitals: This is the heart of digital insurance. This core is what brings all the pieces together; it serves as the connection of workforce, internet of things, partner networks, brokers, and the customers. When insurance adopts the digital, the processes involved in the running of daily activities are simplified and brought to standard, across various channels. With the integration of analytics adapted for prediction, insurance companies have access to insights on consumer behaviors, as well as the performance of the business.
Customer experience: Once a business goes digital, the experience of the customers become personalized and in most cases, adapted to be proactive. In digitalizing a business, the system creates a central outlet to marketing, sales, insurance services, and commerce. By achieving this, customer can have a wholesome experience.
By having a digital system, the surf of every customer is personalized, seamless, consistent, and relevant. This would, in the long run, help the insurance company establish trust with its customers.
The workforce is engaged:When the insurance process is digitalized, the employees of the company are free from carrying out first contact consumer interfacing. They are free and go on to engage with higher-value activities. Succeeding with digital insurance would, however, be dependent on how innovative the company is with modeling, recruiting, managing, compensating, and onboarding a ready-to-go workforce.
IoT (Internet of things): In the next few years, billions of devices are expected to have a connection to the internet. With this, companies are liable to getting loads of information than they could ever need, to foster products and services that resonate with the audience in their demographic.
Big data would only be the starting point in the ways companies can access information, that would help have an insight into what the consumers what at any point in time.
Mphasis 