5 Digital Trends Leading the Insurance Revolution
Digital transformation has revolutionized many industries. Thanks to new technology, businesses are constantly finding new ways to better serve their customers. This is particularly true in the insurance sector.
Although many established insurance providers have been slow to innovate, the emergence of dynamic new startups has begun to yield major shifts in the industry. Everything from affordable renters insurance to car insurance plans is now widely available, changing the landscape of the space. Here are some of the more noteworthy ways digital transformation has changed how insurance providers operate.
1. Simplifying the claims process
Traditionally, the process of filing a claim with an insurance provider involved calling the company directly and going through numerous tedious steps with a representative. Now, providers are using technology to allow customers to file claims, interact with their adjusters, and monitor the status of a payment — all through their mobile devices. This makes a once-cumbersome process much more convenient and streamlined for all parties.
2. Leveraging artificial intelligence
Artificial intelligence (AI) isn’t an imaginary sci-fi technology anymore. It’s a legitimate tool businesses across numerous industries can leverage to enhance their services.
In the insurance sector, providers are using AI chatbots to offer more reliable customer service; instead of waiting on hold to speak with a representative, customers can access a chatbot at any time. Providers are also using tools like machine learning to efficiently analyze customer data. This allows them to offer a more personalized degree of service.
3. Making enrollment easier
Mobile technology has done more than just simplify the claims process. It’s also simplifying the process of buying insurance in the first place.
Instead of sitting with an agent and trying to sort through the various plans available to them, customers can now compare policies and sign up directly via their mobile devices. In many instances, this also makes it easier to tailor a policy to a customer’s specific needs. They can simply enter information about what type of coverage they’re seeking, generating quotes for policies that fit both their needs and budget.
4. Embracing the Internet of Things
The Internet of Things (IoT) refers to digital devices that, like a phone or tablet, are connected via a network. Smart watches, smart thermostats, and smart TVs are all examples of this technology.
IoT devices can share data with others seamlessly. This is why many believe it will soon play a major role in the insurance sector.
For example, a customer might equip their home with various IoT devices that monitor whether they take measures to keep their property safe, like locking the door, turning off the oven when it’s no longer in use and practicing basic maintenance. These devices can relay information about the customer’s behavior to their insurance provider. If the provider sees they are actively taking steps to protect their home, they may offer that customer a lower rate.
5. Organizing data
Digital technology is primarily useful because it allows providers to centrally store customer data, meaning any relevant party in the organization can access it. This makes every aspect of the insurance process, from modifying a plan to filing a claim, far more seamless than it used to be.
For instance, in the past, a customer who got in touch with their provider may need to wait for a representative familiar with their data to respond. Now, every appropriate representative, chatbot, and software program within the company can access the data when necessary. This boosts the overall efficiency of all insurance processes.
Luckily, it seems as though we’re just starting to appreciate how much digital technology can improve insurance. As more providers experiment with these tools, they’ll find better ways to leverage them. These trends are just the beginning.