June 13, 2021

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Skillful Technology Connoisseurs

Empowering Insurance with Technology of Tomorrow

Use of advanced technologies like AI, ML and BD help ensure a greater customer satisfaction

The insurance industry calls for leveraging future-proof technology. End-to-end digitalisation is the key to customer satisfaction. Buying an insurance policy has been considered a tedious and cumbersome process for a very long time now. The business is considered quite complex and the products are difficult to comprehend. The fine riders, exclusions and fine prints make this even more complex for a common consumer. With the advent of digitalisation, using the right amount of technology and customisation strategies, the process is slowly made interesting.

The power of a digitally enabled user experience come into the picture here. A transformation led by technologies like artificial intelligence (AI), machine learning (ML) and big data (BD) guarantees a seamless and unforgettable customer experience that enables a deeper and more meaningful relationship in the future.

Technology can enable insurers to go beyond their limited reach as the world has become an accessible marketplace, and innovation is the only constant. Futuristic outlook has benefited those who, without reluctance, moved from traditional towards digital space before the pandemic. There is a huge competitive disadvantage to those companies, which are still reluctant.

Why is integrating technology desirable now more than ever?

Lockdown and work-from-home culture: Almost every company is back to work in a hybrid model. With the recent rise in Covid cases all over India, the culture has become more enforced, and the reality is that the culture is here to stay for a while. WFH might just become a permanent solution to flatten the curve.

Internet penetration and increased connectivity: With the rising WFH culture, internet and connectivity equipment saw a rise in demand since the start of the pandemic last year. So much so that equipment like dongles, routers and mice are running out of stock. Internet connectivity, even in rural and remote areas, is seen getting a boost.

Emerging technologies: With the advent of emerging technologies, the use cases of simplifying an earlier complicated, paper-driven process is on a constant rise. Solutions relating to data mining and data analysis are in demand as the customer generates data for analysing and catering to their needs.

Simplified products and processes: Companies need to simplify their products and revamp their legacy business processes technologically for the ease of their customers. Real insurance transformation starts with simplification. The customer understanding of the products and experience needs to be less complex, more efficient and more tailored.

These points give broad reasons why insurance companies should go digital, but now, we will discuss how technology empowers the insurance sector.

India is a young and unconventional country that requires modern solutions for most of its problems because of the large population of millennials. Ease of access anytime, anywhere, on-demand and comfort can only be made possible through technology.

The product now needs to revolve around the customer. It needs to be so that customers have a great experience. This kind of empowerment can be made possible through technology. For example, you can get your items like phone and camera insured via a mobile app, simply with a single tap. Technology allows the use of analytics and innovations to tackle business challenges and simultaneously open growth opportunities. It lets you forecast the risk and find out solutions for new business models such as charting out customer’s life insurance journey and their health history and their likeliness of getting fit with age before quoting the insurance premium to a customer (in under a few minutes).

Technology also makes it possible to reduce risk by providing personalised insurance solutions. Keeping track of customer behaviour can help form a solution tailored to the specific need of the individual. AI can help with initial damage assessment and emerging tech tools for internal inspection. Blockchain can help eliminate the intermediaries, claim-related issues like processing and denials and excessive check-ups.

Insurance companies on the bandwagon of digitalisation are exploring how to transform their customer’s journey. Adopting digital solutions like Life.io or Insurance-In-A-Box has enabled insurers to transform operations, fast-track product and channel launches, and leapfrog to digital. The upending transformation will only continue to accelerate with the pandemic situation development in every country, including India, and the rising need to go digital.

The author is Managing Partner, SE2 India

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.