The future is here! The insurance industry is evolving rapidly, and we have a wide array of technological advancements to thank for that.
As discussed in previous blog posts, cloud-based technology is the basis for future technology innovations, enabling both small and large businesses alike through vendor offered solutions. In the past, only large businesses willing to invest large amounts of money in legacy system development had access to modern technology. This change has increased the competitiveness of the insurance industry globally, and consumers are taking advantage of this.
Cloud technology is scalable, less costly, flexible, resilient, and can be implemented in a shorter time frame, than traditional legacy systems. Most notably, it offers insurers the flexibility to integrate multiple systems, offering a centralized database in which all customer data can be accessed without opening multiple systems; saving time and improving efficiency. Integrating this data gives insurers a better understanding of claimant behaviors, underwriting rules, and pricing policies, resulting in lower cost policy options.
In its Insurance Technology Vision 2018, Accenture notes,
“AI has grown to the point where it often has as much influence as the people putting it to use, both within and outside the company.”
One of the many benefits of AI is that it enables a seamless experience, pulling from historical and current data to enhance the customer experience. Additionally, AI can help insurers connect with customers in real-time and in a more personalized manner, giving customers what they want, when they want it.
Understanding the importance of leveraging these technological advancements, ClaimVantage recently tapped into AI by developing a chatbot (which we recently showcased at the DMEC). Our Chatbot is designed to answer common questions about the status of an absence claim and to help an employee to complete actions that come up frequently making it more convenient to get information.
Only 15% of customers express that they are satisfied with their insurer’s digital presence and experience. Customers are becoming increasingly dependent on technology and digital applications, but companies are failing to satisfy the customers need for digital in their business plans. The Internet of Things (IoT) enables insurers to access data and analytics, and hence, deliver claim determinations, policy pricing etc. in a more timely and efficient manner. To stay ahead of the curve, companies need to take advantage of this.
While insurers may focus on more recent IoT devices such as wearables and smart home devices, it’s critical not to underestimate the importance of smartphones. Gone are the days where customers accepted that they could only contact insurers during business hours. Customers have access to their phones 24/7, and they expect to be able to access their insurance policy or claim details and get in contact with insurers at the click of a button. Because of this, insurers must continue to ensure their services are accessible and optimized for mobile devices.
In summation, there are four key points to take away from this blog:
- A centralized database saves time and improves efficiency.
- Integration and automation open up opportunities to offer personalized services to consumers.
- Consumers want more personalized, online interactions with their insurance providers.
- Through leveraging AI, IoT and Cloud Technologies, insurers can thrive in the increasingly competitive industry.