Digital Insurance

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Digitalisation is a process affecting every sector of the economy all over the world. It has undoubtedly also entered the insurance industry changing its entire dynamics. As the insurers embrace this new transformation, they are able to compete in the market and meet the expectations of their customers even better.

TRANSFORMATION OF THE INDUSTRY

Insurers are improving their business operations by combining new technologies with their practices to increase the potential of their work, and provide the best service. Insurance companies have changed their old ways and adapted new ones in the most beneficial ways:

• Artificial intelligence makes work very efficient, for it is faster and more accurate due to tendency of humans to make errors.
• Predictive analytics driven by AI are used that help insurers understand their customers better, target the right markets, and hire the right agents complementing their work the best.
• Insurtech employed helps make insurance value chain more cost-effective and efficient, that traditional insurance companies might not experience.
• Claims can be processed digitally are faster, and insurers can automate low-value transactions.
• A fully online brokerage service can benefit the potential costumers, and maximise the opportunities to sell.
• Comprehensive dashboards, and unified data systems makes the jobs of the employees easy too. With low-code capabilities of this digitisation, companies have no worries of hiring an entire new team with computer science degrees.

Self-service portals, live chats, customised apps, etc. are all a part and parcel of digitising the insurance process. Customers today look for such technology-driven quick options for their service in today’s fast-paced world. Not only are customers happier with a better, error-free, cost-saving service, but so are the insurers with lesser risk of fraud. The new technology enables them to identify customer’s behavioural patterns through predictive analytics and do a background check through software programmes, that makes it easier to detect scam.

ROBO-ADVISORS

A specific gift of AI to the industry’s digital transformation is the potential use of Robo-advisors for financial advising in Surat. With their unique advantages rising from algorithms and no need for human intervention, they can add significantly to the quality of customer experience:

• They can be available 24/7, with high-quality data analysis and therefore give fair and transparent advise
• The application process will be speeded up, the number of auto-approvals would increase, and effectively, the policy issuance time would reduce.
• They are particularly cheaper as there is no human service and effort attached to it.

Robo-advising can be seen as the future of the insurance industry, and effectively replacing human brokers. Many wealth management companies around the world have already started employing this technology.

Despite this all, there are some risks attached to this transformation. Customers do experience a lot of obvious benefits, but they also need to be careful and most importantly informed:

• They should be assured that the information provided by the online platforms are in their best interests
• They should beware of the over-simplification and biases of information because they might not reflect their preferences.

Apart from this, companies also might have some downsides to digitalizing. Since a lot of work will be automated, they may have to lay off employees.

THE FUTURE

Digitalization is inevitable. The industry must keep up with the changes in order to remain competitive. With the right combination of wonders of human intelligence and the ease of technological gifts, the insurance industry could continuously advance and provide the best possible service.