Impact of Digital Opportunities on the Insurance Model

Feb 19, 2021

The insurance application development industry has always struggled to secure customers’ trust. Customers usually consider an insurance purchase as a burden, and not as something they want to buy. In this environment of customer distrust, what should insurers do to improve the customer experience? Well, digital technology can be the perfect answer and will not only solve consumers’ most hated aspects of insurance, like claim recovery but also offer new experiences that will change how people look at insurance.

Impact of Digital Transformation

Digital technologies have impacted the most traditional sectors, and insurance is one of those. Traditionally held back by slow-paced technological improvements, the industry is experiencing major technological transformations that can change every aspect of the insurance model; right from the way products are designed to how customer interactions are managed. The emergence of new digital technologies like telematics, wearables, AI, and sensors & monitoring systems are allowing insurers to provide personalized experiences.

At Key Management Group, we understand the significance of digital transformation in insurance. Our deep knowledge and rich industry experience make us ready to collaborate with insurance companies and address business requirements that drive immediate value.

• Hi-Touch Customer Experience

New digital technologies are offering insurers an opportunity to get closer to their policyholders and give them a personalized customer experience that people crave. This will be vital for insurers as they contend with growing competition and increasingly fickle consumers.

Insurers are investing, significantly, in new digital platforms like big data, analytics, artificial intelligence and mobile which are helping them to know their customers better. With valuable customer data from digital records, connected devices, and social media, insurance companies can offer their customers real-time, on-demand services. Fraudulent claims can also be identified with greater accuracy.

• Usage-Based Insurance (UBI)

Traditionally, auto insurance premiums have been driven by parameters based on age, past accident history, etc. However, digital channels are enabling customization of premiums depending on more critical factors like driving behavior’s.

This way insurers can provide inputs to the customers based on their driving skills, thereby promoting safe driving and ultimately reducing the number of accidents and pay-outs.

In a Nutshell

Going digital is a chance to win back customers and engagement losses of the past few years. If insurance companies aspire to be ahead of the game, they should consider investing in their digital expertise by using newer technologies.

Technologies like artificial intelligence will enable insurance core system professionals to spend less time on routine admin tasks and more on adding value i.e. engaging with customers and making better decisions.