December 7, 2023

Insurance Digital Transformation 2024

Around half of Generation Y commonly aren’t loyal to one service provider for more than a year and open to acquiring insurance products and solutions from the tech firms.

Written by
Anna Shults
CMO


This is one of the reasons why as for any other customer-driven scopes digital transformation for insurance is no longer can’t be avoided.Integration of business automation and optimization solutions is a condition to be able to succeed within current market conditions.

The force of the client's expectations is also backed by the necessity of the raising accuracy of the risk analysis. Not to mention that InsurTech as a Fintech subset slowly but confidently takes the bite of the market itself leaving eventually no other choice than to turn towards the technology.

This is one of the reasons why digital transformation for insurance is no longer can’t be avoided. Integration of business automation and optimization solutions is a condition to be able to succeed within current market conditions.

Insurance digital transformation challenges and benefits

The field tendency towards innovation is already reshaping the industry, setting the new and multiplying the strictness of old demands the challenges that market players should deal with from day one.

Business models

The tech becomes not only the support kit but also the core of the operation of the new players. Such concepts like Usage-based insurance (UBI) transform into the market trends making the established companies adjust to the changing environment to stay competitive. When the economy is based on outcomes it’s inevitable.models

Customer relations

Acquisition, engagement, and retention require additional custom multi-channel efforts since no location, time or other basic barriers divide customers from the service providers. Moving forward to the eCommerce plane the industry should diversify and optimize the ways of customer interaction.

Customer experience

The establishment of remote connections with clients to simplify and speed up the journey from exploration to pay-as-you-drive offers was required before insurance digital transformation COVID impact. To accomplish that it’s required not only BI integration but also robotic process automation for the continuing the digital transformation in insurance.

Insurance digital transformation challenges


Service reputation

The competition shifts customer attention from engaging marketing to proven references forcing the service provider to contribute more in the building of the trustworthiness of the brand. It implies raising the visibility of the operations and workflow optimization to raise the level of responsiveness and service efficiency.

Security

With the going online the concerns related to personal data security only increases. Cybersecurity becomes one of the top priorities along with the risk reduction algorithms created for customers to ensure the safety of the client’s identity, health, property, or any other possessions covered by the selected policies.

However, any additional difficulties are only one side of the inevitable business transformation. Opening opportunities have a significant value for further market development and growth. Among such benefits are:

Cost reduction

One of the ultimate goals of business process automation it’s the increase of operational cost-efficiency. Through more sophisticated strategic planning, workflow optimization and the enablement of self-servicing required investments can be redirected to the improvement of the provided service.

Customer retention

It becomes easier to influence the strengths of relations not only through social media and client support but also actual ease of access to the provided services without extra guidelines. The technology allows more clearly to see each client’s sales churn path and attitude to timely manage any occurring issues.

 Insurance digital transformation benefits


Market diversification

The innovation reveals not known before ways to provide quality service to customers that can be accomplished even within existing business models. In particular, they give the ability to the SME sector more opportunities to stay steady in the competition with the big players.

Revenue boost

One of the stopping points of digital transformation is required investments. However, it was noted that deliberate adoption led to the revenue increase through better usage of the available margin sources, adding the new ones as well as better risk management and employee engagement.

Insurance digital transformation trends and technology

Any tendencies in the scope are dependent not just on market changes but also om the tech that can support and induce their following development. Being one of the data-driven fields insurance leverages the wide selection of modern advancements.

Blockchain

As a major part of the financial scope, the insurance sector digital transformation affected has a suspicious attitude towards blockchain. However, it’s already noticed the potential in application of the technology to the industry such as optimization of scope internal financial operations and liquidity, integration of auto-settlement claims, ease of transactions such as reinsurance, etc.

The technology already supports the further development of emerging business models such as on-demand and P2P. It can significantly change approaches to data security as well as contracting if using the “smart” approach.

Mobile technology

The channel created by small portable devices already taking a bite of the market from desktop devices making it a non-optional tool for sales and marketing. The ability of on-the-go access to necessary procedures only adds points to its value for the digital transformation insurance business model.

From data provision and loss/changes notifications to enablement of the key processes from mobile devices - such approaches raise the visibility and efficiency of the operation as well as establish better customer engagement.

 Insurance digital transformation technology


AI

Artificial Intelligence with its subsets is what is disrupting workflow systems and data analytics. Reducement of the amount of paperwork, processing of claims and underwriting, CRM improvement, etc. - all can be enabled with the right approach.

However it should be a part of the strategic planning since integration of AI solutions is on the top of the required changes that should start from the rethinking of operating models, company goals, and needs of target customer groups.

IoT

Internet of Things extending the available data sources affecting the accuracy of data analytics and the scopes of its application for the insurance agency digital transformation. In particular, it significantly changes the game for the risk assessment and even reduction making it more detailed and deep that in its turn will affect pricing and business focus selection.

Applicable approaches are based on sensors and wearables that can make services more personalized and adjusted to current trends by gathering, for instance, lifestyle data and enabling remote serving. Also, they allow minimizing the possibilities of accidents stipulated and covered by policies.

Cloud

The need for constant data access makes the scope widen the vision of data storage to ensure 24/7 remote access using cloud solutions. Such an approach, for instance, eases the usage of IoT devices where collected data stored within cloud-based IoT platforms.

It also contributes to service personalization by enabling the sophisticated account-based system with reward programs allowing clients to track their history working with the service provider including real-time information like claim statuses.

Robotics

Insurance digital transformation examples go far further than the integration of BI solutions. Robotic process automation (RPA) also is an integral part that finds application in the enablement of remote access whether to data sources or clients.

Among uses cases, helpful robot-advisors imitating the human interaction might seem excessive until the pandemic underlined the necessity of the distance access. As well as, drones that gather visual data for analysis without impact by the third-parties also can be employed for evidence collection for compensation cases and claims.

 Insurance digital transformation future


Innovations like smart cars and healthcare technology achievements can also be considered as a part of the insurance transformation considering its direct impact on service demand.

All mentioned tech advancements allow the industry to move the focus from protection- to prevention-based model partly or fully, In other words, the industry can become more proactive and ready to respond to the demands of the constantly changing market.

Customer retention is the key

Lorem ipsum dolor sit amet, consectetur adipiscing elit lobortis arcu enim urna adipiscing praesent velit viverra sit semper lorem eu cursus vel hendrerit elementum morbi curabitur etiam nibh justo, lorem aliquet donec sed sit mi dignissim at ante massa mattis.

  1. Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  2. Adipiscing elit ut aliquam purus sit amet viverra suspendisse potent
  3. Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  4. Excepteur sint occaecat cupidatat non proident sunt in culpa qui officia

What are the most relevant factors to consider?

Vitae congue eu consequat ac felis placerat vestibulum lectus mauris ultrices cursus sit amet dictum sit amet justo donec enim diam porttitor lacus luctus accumsan tortor posuere praesent tristique magna sit amet purus gravida quis blandit turpis.

Odio facilisis mauris sit amet massa vitae tortor.

Don’t overspend on growth marketing without good retention rates

At risus viverra adipiscing at in tellus integer feugiat nisl pretium fusce id velit ut tortor sagittis orci a scelerisque purus semper eget at lectus urna duis convallis porta nibh venenatis cras sed felis eget neque laoreet suspendisse interdum consectetur libero id faucibus nisl donec pretium vulputate sapien nec sagittis aliquam nunc lobortis mattis aliquam faucibus purus in.

  • Neque sodales ut etiam sit amet nisl purus non tellus orci ac auctor
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
  • Mauris commodo quis imperdiet massa tincidunt nunc pulvinar
  • Adipiscing elit ut aliquam purus sit amet viverra suspendisse potenti
What’s the ideal customer retention rate?

Nisi quis eleifend quam adipiscing vitae aliquet bibendum enim facilisis gravida neque euismod in pellentesque massa placerat volutpat lacus laoreet non curabitur gravida odio aenean sed adipiscing diam donec adipiscing tristique risus amet est placerat in egestas erat.

“Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua enim ad minim veniam.”
Next steps to increase your customer retention

Eget lorem dolor sed viverra ipsum nunc aliquet bibendum felis donec et odio pellentesque diam volutpat commodo sed egestas aliquam sem fringilla ut morbi tincidunt augue interdum velit euismod eu tincidunt tortor aliquam nulla facilisi aenean sed adipiscing diam donec adipiscing ut lectus arcu bibendum at varius vel pharetra nibh venenatis cras sed felis eget.

Let's Discuss Your Project Idea?

Take your first step today and book a free consultation with our representatives. We will do everything possible to unlock new possibilities for your clients and business.