The technology is constantly evolving. While all this change is exciting, industries that are flexible with the transformation will only have the chance to survive and thrive.
Evolving technology and the latest trends in the insurance industry, which have challenged insurers in the last year, will continue to dominate. In 2019, the industry chooses to focus on new opportunities that will transform how the consumer demands are met. Defining and leveraging innovation will be the biggest opportunity as well as challenge this year.
The industry has already experienced accelerated disruption by insurtech companies. However, it will be incredibly challenging to keep up with the competitors, a changing regulatory landscape and also cybersecurity issues.
In this article, we have discussed a few challenges insurance companies are expected to face in 2019.
1. Customer expectations have changed
According to research, more than 70% of insurance consumers would rely entirely on automated, digital means to manage their relationships. Having grown accustomed to self-service customer support, consumers now expect to be able to do more on their own.
For the kind of experiences customers are looking for, insurance firms need to begin offering more functionality via self-service, allowing them to do more on their own. Digital self-service is great to deliver the convenience customers demand, while also reducing per-interaction costs of the insurer. For instance, AI-powered self-service technology can now automate everyday interactions such as answering policy questions, processing insurance claims, and so on. This also enables high levels of accuracy, which is must for insurance-related issues.
2. Rules and regulations are getting tougher
The National Association of Insurance Commissioners, along with state and federal agencies continue to tighten the operational framework for US agents. Cybersecurity regulations are also getting stringent.
The IoT, autonomous devices, connected homes, alongside the rising threat of Cyber Attacks are transforming the way people engage with insurers and their products. Hence, it becomes crucial for insurance firms to adopt new technologies and identify opportunities as well as challenges.
In a Nutshell
The insurance industry is coping with drastic shifts in consumer behaviour. Customers now have greater expectations when it comes to ease-of-use across all touchpoints, from mobile apps to websites to one-on-one interactions with the staff.
Companies that offer great customer experience are in the position to grow faster and profitably. Therefore, insurers must relentlessly focus on improving customer journeys across channels.