By Reshma Goregaonkar, Head Product Development, Universal Sompo General Insurance
One of the challenges the insurance industry faces is the significant changes brought by digital technology, which impact all levels of business. The insurance industry is forced to deal with major changes on all fronts due to the impact of digital technology and this is its most pressing challenge. Insurers are challenged on all fronts by significant changes brought about by digital technology which is their most pressing challenge. The pressures on the insurance industry come from all sides as it undergoes significant changes due to digital technology.
Technology is at the core of the transition. In the creation, marketing, and servicing of products, the use of artificial intelligence, automation, and data analytics is reshaping the way insurers operate.
Digitally enabled means not just more efficient but also more customer friendly. Consumers are provided with services through many different channels, such as mobile apps, websites, and messaging platforms, in a very simple and easy way. Some of the tools available are instant notifications, digital health cards, and location-based assistance, all of which decrease the customer’s need to call a help center and increase the customer’s ability to manage their insurance independently. Just as significantly, embedded insurance offerings through fintech or retail platforms enable customers to purchase insurance effortlessly as an integral part of their usual transactions.
One vital component of the industry’s digital strategy is employing experience design principles to the customer journey. Being able to delineate each stage of the process from research to settlement, the insurers will be able to see the rifts and fix them with solutions that are proper and straightforward. By taking into account factors such as providing seniors with dedicated support and first-time buyers with guidance, the end product will be an experience which delivers the user’s feeling of being understood and not just another number.
Technology also provides intermediaries with more power. Digital portals are now giving agents and partners access to real-time policy creation, commission tracking, and service tools, while analytics dashboards enable partners to use data-driven insights for recommendations. Consequently, the extended network is not only functioning at optimal capacity but also equipped to provide customers with the tailored help they need, thus creating a smooth transition between technology and human interaction.
AI and data analytics are playing an increasing role in underwriting and claims and quite substantially so. Partly, this is done by the help of machines that carry out automated checks on the evaluation of risks and thoroughly complete the process on the basis of uniform criteria while a task connected to AI, claims processing with the assistance of which quickly identifies fraud, interventions are decreased, and the precision is improved, is dealt with in another department. Besides, data insights are enabling insurers to develop individually targeted products and services, for example, wellness-related offerings and relevant add-on covers tailored to specific customer needs.
Cyber insurance, a segment that is rapidly growing, exemplifies another significant trend. The majority of the retail customers are not aware of it, so the insurers have to put their focus on education and development of simple and easy to understand products.
The following step in its digital revolution will be marked with the concepts of hyper-personalization, intelligent automation, and ecosystem integration, going forward. Insurers are aiming at a model that is proactive and predictive whereby customer needs are anticipated rather than just responded to. The ultimate goal is to make insurance intuitive, inclusive, and impactful delivering protection and trust at every touchpoint in a customer’s journey.
In a world where customer expectations continue to evolve, the ability to combine technology with empathy will define the future of insurance. The game has changed; it is no longer just about policies but also about creating experiences that are effortless, individualized, and have a deeper meaning.