Author : Apoorv Chaturvedi
COE-Insurance Engagement
21/Apr/2021

Apoorv heads the Insurance Engagements COE for Espire. With an rich experience of over 13 years in the insurance domain across Life Insurance, P&C and Reinsurance, he ensures rapid development of frameworks and meticulous implementation of digital transformation & CX processes for businesses in the insurance industry.


Digital Transformation Use Cases for the Insurance Sector

Traditional forms of insurance have started to face a lot competition from niche and nimble competitors who are better able to cater towards the 'Millennial' crowd. For the insurance sector, digital transformation and innovation has been long due task. However, the industry is weighed down by legacy technology and a culturally steeped resistance to change.

There’s a reason for such resistance - insurance is meant as a protection against perceived risks. They play an important role in safeguarding diverse assets and portfolios. With rise in population, megacities, and increasing economic activities, the risk quotient also rises exponentially.

At the same time, insurance industry has to act in accordance to stringent regulations, low-yield assets, and penalties. It also cannot provide a one-size-fits-all policy to businesses and individuals as each coverage is dependent on the assumed risk it carries. Therefore, there is a need for a holistic digital transformation approach which can aid in offering innovative solutions, keep apace with changing social, technological, economic and environmental change and identify new opportunities in real time.

According to McKinsey, 25% of the insurance industry will be automated by 2025 with help of AI and machine learning. AI can assist this industry in automation of claims processing, claim fraud detection, risk predictions along with providing smart contracts and providing predictive data that can improve underwriting and reduce overall cost to companies.

1. Customer Experience Is Central To All Digital Transformation

The one common denominator of new-age insurance companies and their impact on this industry is due to one thing they get right - they put customer experience at the centre of everything they do. From engagement, retention, selling, and servicing. Digital transformation has the ability to bring a customer in direct correspondence with an insurance company.

According to Salesforce’s 'State of the Connected Customer' report, 68% consumers believe technological advancements would positively impact their relationships with insurance companies, with 53% customers expecting offers to be personalised - up from 49% in 2019.

In today's uncertain times, it is harder for brands to build customer confidence, increase customer satisfaction and drive customer loyalty. According to Gartner, top marketers need to understand key customer personas and design and optimize interactions to deliver innovation and drive customer experience.

Automation ensures direct service to customers, shifting the responsibility of brand building and marketing to the insurance carriers. The online product offerings should address the broad spectrum of insurance needs, engage customers who 'search' for particular products, share comprehensive information, and enable equitable comparison to close a new policy.

If for any reason customers prefer interactions with agents, enterprises should enhance the independent agency model with a digital sales ecosystem for real-time collaboration.

Legacy Transformation in Insurance with low cost, low risk cloud-based systems in record time

2. Automating Claims Process & Risk Prediction

According to McKinsey, digital claims transformations generate impact across all of claims’ foundational key performance indicators. Successful digital claims transformations integrate 5 elements:

  • Customer experience excellence
  • Analytics-driven claims handling and automation
  • Claims prevention services
  • Value-added services
  • Continuous improvement from customer feedback

Claims - be it genuine or fraudulent - can be processed faster by automation tools thereby raising the bar in customer experience. Such digital transformation in the insurance industry will also save time and costs by eliminating the middlemen - a disruption for brokers and agents. Significantly, digital intermediaries reduce turnaround time and boost efficiency across the entire matrix from underwriting, premium collection, and claims settlement processes.

Risk mitigation is a significant aspect of insurance whenever any policy issued to the insured. Risk managers and insurance professionals need visibility into potential and type of risks, forecast claims possibilities, and insure any emerging threats, in order to accurately underwrite policies, and effectively manage claims. Agile digital integration can assess such risks and improve underwriting by processing historical data and taking real-time data from existing digital ecosystems.

Driving Contextual Digital Engagements in Finance & Insurance with Sitecore

3. Reduce Risk With Predictive Analytics

When it comes to underwriting, an insurance company has to be very precise for issuing a policy and be able to factor a myriad of risks. Predictive analytics can connect these dots between diverse data sources and anticipate risks. It can not only factor in fraudulent claim but also detect it.

Such digital tools can simulate models to facilitate risk evaluation while minimizing dependence on old claims records, thereby helping insurers provide adequate coverage and deal with high-risk segments better. Advanced modelling helps forecast diverse risk scenarios, while preventing overselling. Brokers often pitch wrong plans or oversell coverage. Insight-driven pricing models make use of an applicant’s data and consolidated statistics to rationalize the cost of personalized plans.

Big data analytics helps configure products with benefits that transcend policyholders and financial criteria. Insurance solutions that align premium rates with a customer's driving history, lifestyle, well-being, and energy efficiency help achieve socio-economic goals through investments in wellness products, hybrid vehicles, green buildings, energy efficient industrial equipment, and renewable energy.

The world is changing and so too the competitive insurance sector. Digital transformation offers an added layer of protection and benefits, predict emerging risks and orient towards enhanced customer experience.

 


MORE FROM OUR BLOGS

Improved CX & Student Engagement for a Leading Australian University

A leading Public University with seven campuses across Australia.This Australian University is ranked in the top two percent of universities worldwide by the Times Higher Education World University Rankings 2020 & is the number one Catholic university in the Asia-Pacific region.

Achieving Superior Digital Student Experiences in ACU with Personalisation, powered by Sitecore

Achieving Superior Digital Student Experiences in ACU with Personalisation, powered by Sitecore | Winning Students in the Digital Age With a Customer Experience that is Scalable & Personalised Via Sitecore

A Niche Technology Company Enhances its Global Sales Operations Management

Implementing Sales Cloud From Salesforce.com Enhances Global Sales Operations Management for a Niche Technology and Digital Services Company, Specialists in Customer Journey & Customer Experience Managementwith exceptionally designed digital experience solutions.

Automation of Print Stream for a Global Mail and Document Management System

The client was using latest folding / inserting equipment to automate the collation of mails including critical communications like outbound invoices, incoming payments and promotional mailings as well as payroll & vital employee communications.

Designing an advanced technology ecosystem to improve CX for a leading Australian Superannuation Fund Company

An Australian superannuation fund company which provides financial advisory services, insurance and other investment opportunities to all its clients and members

How to get started with sitecore experience optimization for achieving your cx goals in 2021

Sitecore’s Experience platform capabilities with its marketing automation and experience optimization tools will act as a game changer for brands as they will have a crystal-clear view of their content creation stages right from inception to execution to delivery, for driving higher conversions and customer engagement.

Conversational ai the key differentiator to offer exceptional cx in coming times

The tech-savvy customers of today expect their issues to be resolved with a tap of a button. As a response to this rising need of the customers, most enterprises are turning towards chatbots and deploying conversational AI to address the queries of the customers. Such self- service customer portals improve customer experience and service efficiency

Tips to optimize your customer experience at scale in 2021 and beyond

Businesses world over have adopted a digital-first approach, not just by deploying the state-of-the-art tools and technologies to optimize business functions but also delivering omni-channel experiences for garnering a higher customer lifetime value.

Adopting total experience transformation to tackle business challenges and drive customer loyalty

The concept of delivering enhanced customer experience, the role of multi-experience with the development of IoT devices and advancement in AR/VR domain, has been a popular concept in recent years.

Digital transformation usecases for the insurance sector

There is a need for a holistic digital transformation in the insurance sector to offer innovative solutions, keep pace with changing social, technological, economic and environmental change and identify new opportunities in real time. From engagement, retention, selling, and servicing, digital transformation has the ability to bring a customer in direct correspondence with an insurance company

Subscribe To Our Blog

By clicking on "SUBSCRIBE NOW" you acknowledge having read our Privacy Notice.