How digital transition is reshaping the Insurance industry

Introduction–

The global insurance industry currently has an overall market size of nearly US$ 6 trillion. It is growing at an impressive rate of almost 6% p.a. With such a huge market, which is further characterized by cut-throat competition, the insurance companies are always searching for new and innovative ideas or improvements, which can give them a competitive edge over their counterparts. The proper use of technology in this industry can provide miraculous results in less time. With the increased independence of businesses upon technology, the insurance industry is no exception and is continuously moving towards the sector’s digitalization.

Advantages–

The increasing use of technology in the industry has observed rapid growth in the last two decades and has made the business simpler, efficient, and profitable. Here are a few advantages of digital transformation of the insurance industry-

• It makes the process more efficient and effective –

The digitalization of various processes, which earlier proved to be cumbersome and time-consuming, will now help companies save time, energy, and other resources. Added to this, this also helps companies invest their time and funds into other important aspects. This also helps in making all the processes more standardized and automated.

• A great tool for beating the competition and scaling the business –

The right use of technology proves to be a blessing for any business, and the insurance industry too can prosper from it. This helps save the resources and act as a great ‘silent promoter’ for the company by attracting consumers towards it and thus helping the business grow.

• Better consumer experience-

For any business, satisfying its customers is the most important factor for success in the long run. By designing a customer-friendly user interface, companies can enhance the customer experience through seamless access to all the data and information while giving them a feel of personalized attention.

• Better communication and coordination among the multiple parties involved-

As the stakes of multiple parties involved in an insurance contract are looked at while performing any activity or taking any decision, the overall process becomes time-consuming and complex. By digitization, all the processes, be it preparing an insurance contract or settlement of a claim, becomes simpler due to enhanced communication between the parties.

Ways of digitalization of the insurance industry-

Following are some most common and widely used methods of digitally transforming the insurance industry-

• Artificial Intelligence-

Using artificial intelligence, the company targets to provide its customers more accurate data or information according to their specific requirements in a short period. This can easily substitute many works which were earlier used to be done manually.

• Applications and websites-

Launching the company’s own official mobile application and website can easily connect to all its existing customers on a particular platform. It can also attract new ones through it. The customers can use these to access certain basic information regarding various aspects of their contracts anytime and anywhere.

• Chatbots –

To address and resolve the queries and complaints of the customers, the insurance company can make use of AI-programmed chatbots. This helps the company to provide a faster and simpler experience of customer care to its users.

• Social Media-

The social media presence of any company helps it to connect with its existing and targeted customer base. The insurance companies, too, can benefit from these platforms by building their image in the public’s eyes and differentiating themselves from others.

Conclusion-

The digital transformation of insurance proved to be a boon for the industry and has completely changed its face over the past few decades and will continue to do the same for the upcoming decades. The companies embracing it most appropriately will stand unchallenged domination in the years to come.