The relationship with insurance companies has long been associated with endless meetings with agents, mountains of paperwork, and frustratingly long waiting times for approvals. Now that times have changed, insurers are expected to cater to the unique needs of each policyholder. According to the global KPMG CEO Outlook Survey in 2021, 96% of insurance companies’ CEO believe that the pandemic has accelerated progress in this area. This shift has been driven by the increasing use of digital technology, hence insurers offering personalized, convenient, and efficient experiences for their customers.
To stay ahead of the curve, it is not just about adopting new technologies – insurers need to have a high digital IQ to truly impact the customer journey. That means, having the ability to meet customer needs and improve operations through mobile apps, social media engagement, online customer service, and data analytics.
Some suggested best practices include:
1. Omnipresence for Easy Discovery
Gone are the days when customers would physically visit insurance offices to purchase policies. With everything being digitalized, it is imperative for insurance companies to be omnipresent on both online and offline platforms. They must have a strong presence on various aggregation platforms and also establish their physical presence to cater to the needs of those who prefer in-person interactions. This ensures visibility and accessibility to customers, ultimately helping them to stay ahead of their competitors.
2. Hassle-Free Policy Issuance with Digital Onboarding
Moving ahead in the customer’s journey, with digital onboarding and signatures, insurers can offer customers a seamless experience when applying for policies online. Digital onboarding enables customers to easily apply for policies without the need for physical appointments or paperwork, and digital signatures eliminate the need for physical signatures on paper documents. This makes the policy signing and execution process more secure and saves time by providing a personalized experience. Additionally, the use of digital signatures ensures that policies are legally binding, reducing the risk of errors or fraudulent activities that may occur during traditional manual processes.
3. Providing Value-Driven Premium
Wearable devices such as fitness trackers and smartwatches have made it possible for insurers to gather data and create customized policies. This innovative approach also incentivizes policyholders to adopt healthier habits, like regular physical activity and healthy eating, leading to better health outcomes for policyholders and lower claims for insurance providers.
These devices can also detect early signs of potential health issues, enabling policyholders to receive early detection and treatment. This proactive approach not only improves policyholders’ health outcomes but also reduces the likelihood of costly claims for insurance providers. Additionally, customized policies based on data collected from wearable devices offer policyholders more transparency and control over their insurance coverage. By providing them with a better understanding of their health and wellness status, they can make informed decisions about their coverage and premiums, leading to long-term customer loyalty and satisfaction.
4. AI-Powered Claims Processing for Faster and More Accurate Settlements
AI in claims processing is not only beneficial for insurers but also policyholders. By leveraging advanced algorithms, AI-powered claims processing ensures that genuine claims are processed quickly and efficiently, which reduces the stress and hassle associated with traditional claims processes. Moreover, AI can lead to more accurate claims processing, reducing the likelihood of errors and inaccuracies that can cause delays and dissatisfaction among policyholders.
Additionally, AI-powered claims processing offers real-time updates and status tracking, which provides policyholders with more transparency and control over their claims.
As technology continues to shape every aspect of the insurance value chain, from underwriting to claim settlement, enhancing insurers’ digital IQ has become essential. By investing in the latest technological advancements, managing the associated risks, and prioritizing data security, insurers can position themselves for long-term success in this rapidly evolving industry.