Is it worth for insurer to invest in technology?
Let’s face the digital reality.
Deloitte reports say that businesses that have gone digital achieve revenue growth four times as high as the less engaged ones.
Many insurers have heard of terms like digital infrastructure, modernization, IT infrastructure, digital marketing, digital distribution, etc. Terms like digital attackers as well as digital technologies such as telematics, automation, and machine learning are not greek either.
But the real questions are – is this data relevant for insurers? Will these technologies be of any help to the insurance businesses?
Here are three key areas to consider regarding the benefits implementing of digital infrastructure for the insurance businesses.
- Customer Fulfillment
- Lowered Operational Costs
- Higher Business Growth
Customer satisfaction equates to brand value and trust. These are important for a business to stay relevant in the long term. Technology enables higher flexibility in adding applications focused on eliminating and minimizing workload that arises from legacy processes.
What about transforming negative customer experience into a positive one? Isn’t it the desired goal?
Of course, it is.
Artificial intelligence allows this using software that enables the execution of human-like intelligence, including learning, planning, reasoning, problem-solving, and decision-making. Machine learning helps change the way data is used and change the way customers interact with the business.
Lowered Operational Costs
Automation helps insurers reduce the cost of operations. Cloud storage of information facilitates easy to access data, processes tracking information, human error minimization, better client involvement, and delivering an automated notification to clients.
These processes help lower the operational cost of the business. Identifying the customers’ tracks using mapping technology and data analysis allows for easy finalization of the customer claiming process.
Higher Business Growth
Technology helps businesses with data security, customer interaction, and improved customer experience; thereby, providing more in-depth information about the company. The detailed information of operations has a significant impact on the decision-making process within the company.
Technology provides precise data about the customers and the business’s operations, which significantly impacts other areas of the businesses – marketing, sales, finance, etc. Management can make further decisions based on such information, which impacts the growth of the company. Furthermore, technology helps collect accurate, error-free data that ensures practically viable decisions for the business.
Such an analysis, diligent investment in technology and consistent up-grading technology is imperative for the insurers if they want to stay competitive directly or indirectly in the market. Technology has an impact on the consumers and employees that is too big to ignore.
Business decisions rely entirely on customer data and investment data. Modern technology manages data effortlessly, making room for businesses to make effective decisions. There are multiple sources to acquire consumer data automatically and non-intrusively in real-time, thereby helping insurers better calculate and manage risk.
Technology helps eliminate and minimize specific tasks that would take employees days to complete. One report suggests that investment in such technology can increase productivity by 20%, saving time and resources for the business, ultimately benefiting the employees
Stand out from the Crowd
Opportunities do not come often. When they do, they must be grabbed. Businesses can do that only if they are efficient enough to handle the existing workload and acquire new opportunities. Technology and innovation in the business world have made it easier than ever to do so. With modern technology, business is more likely to succeed, surpass their competition by providing the best range of products or services to the customers. It has never been this simple ever.
80% of small enterprises use instant messaging technology to communicate effortlessly with vendors and customers. Customers prefer using technology, which helps them minimize work and make tasks easy. New generation customers are looking for a better, easy, and understandable way of investment. Insurance industry customers are looking for in-depth knowledge about products and services. Technology helps customers check their policy details anytime, anywhere, and enables them to pay the premium using online mode, without any hurdles.
Why should Insurers focus on technology investment?
Many insurers focus more on enhancing legacy systems than effective innovation. However, new generation employees and customers need Insurance companies to start focusing on value automation systems and improving policyholder experience with developing new products, platforms, and services. Insurers face increased scrutiny by rating agencies that are now examining how effectively they initiate and manage innovation and, perhaps most importantly, how they demonstrate a measurable impact.
Investment in technology will benefit the insurance businesses, employees, and customers in ways unfathomable. Surviving in the business space in the long term means insurers must consider technology investment as an opportunity to succeed and not a liability.