Significance of Deploying Insurtech Systems
Insurers can improve their operations at scale and with fewer manual efforts by leveraging technology, which results in increased customer satisfaction and growing business margins.
FREMONT, CA: Technological advancements are the biggest threat to antiquated insurance policies. The way the archaic insurance industry currently works is an example of this. Insurance technology is transforming its operations by providing insurers with the equipment they require to treat customers better and grow their final decision.
The industry is imperatively needed to create massive changes for businesses to remain viable and efficiently serve customers. Therefore, insurtech is not an optional strategy but a quintessential aspect that insurers must embrace to exist in the market. Using insurtech offers a wide range of advantages to streamline day-to-day workflow.
Engage Customers Across Channels
Earlier, it was necessary to visit the banks for any capital-related concerns. Processes like filling out forms, signing, submitting social security numbers and addresses, writing cover letters, and signing an anti-fraud undertaking were tedious. Financial institutions failed to imbibe technologies like scanning retinas as an identity metric.
However, conditions have changed now and many banks allow customers to create savings and checking accounts, and customers can browse and purchase insurance policies for vehicles, businesses, devices, etc. online. This led the customers to expect everything to happen on an online basis, with the increasing acceleration of this trend. The only insurers that will be able to survive the shift away from walk-in, onsite insurance services are those that leverage technology to offer their services on the channels that consumers use most.
Eliminate Fraud and Systemic Waste
The insurance sector aims to take the burden and seeks to relieve customers of their risk. Many clients have a history of being dishonest and trying to get the most money at an insurer’s expense. Indeed, around 18 per cent of all insurance claims are suspected to involve some measure of fraud, and 10 per cent of all premiums paid out are dishonestly claimed. Therefore, the insurance industry identifies fraud as a critical concern, but manual efforts have only limited potential to curb the issue. Insurtech must help assess claims, utilise big data trends to indicate possibly fraudulent claims and discern inefficiencies insurers can close up to save money.
Secure Customer Data
Insurers and financial professionals are the primary targets of cybercriminals as they are centres for economic dealings. Insurance companies amass a huge volume of policyholder data, which hackers can sell or use to target more victims. Hacking results in the risk of paying a ransom and facing legal consequences. Employing technology enables firms to encrypt customer data, identify potential threats, and make it difficult for criminals to breach an organisation’s security.
Enhance Customer Experience
Insurtech provides a myriad of channels for processing requests at scale and engaging customers with customised offers, which is impossible by using conventional insurance facilities. Offering apps that show customers a detailed breakdown of their premiums; chatbots to help policyholders identify help faster, rapid signups, assessments, and payouts, processing support tickets quickly, and digital processes that gather more data while being less invasive are all ways to improve customer experience.