When it comes to technological innovation, the insurance industry has always known for its reputation as a laggard. But as traditional providers race to digital transformation, the industry is undergoing a massive change; driven by the enormous pressure insurers are facing.
In recent years, consumer expectations have soared to new heights; they now demand seamless experiences. As new technologies and consumer expectations rise, insurers everywhere are feeling the pressure.
The introduction of connected devices like in-car telematics and home-automation systems, are further creating new ways of delivering insurance products to customers.
Insurance companies now understand the FinTech revolution. While there will definitely be a lot of challenges, this disruption brings with it so many exciting innovations. It is imperative providers hone in on their digital strategies and makes smart, data-driven decisions.
Disruption at the heart of digital strategies
The industry is indeed heading down the path of disruptive innovation. Insurers are creating digital teams, rolling out digital transformation strategies, capitalizing insurtech startups and looking for new partnership opportunities.
Not just this, organizations are exploring new ways in which digital technology allow them to build closer relationships with their customers.
For instance, organizations nowadays allow customers to monitor and share their fitness levels as a reward for reaching a certain exercise threshold. Others are letting customers take a photo of a car accident on their smartphone for faster decision-making and claim settlement process, which traditional processes don’t allow.
However, many insurers are still struggling to implement these innovations at scale.
While there are some challenges, that are also many opportunities. A number of mundane tasks like claims handling can be done much faster by technology, freeing up claims managers to focus on other critical tasks.
Whether it’s about offering seamless customer experiences or foster strong partnerships with insurtech startups, insurance companies need to rethink the way they work. The road isn’t smooth for insurance companies. But, insurers are still willing to collaborate and work in partnership with insurtechs than ever before. It’s time insurance companies consider ways to move forward, keeping a close eye on market demands.
Blockchain, IoT and AI are no longer marketing keywords but real concepts that are expected to provide improved customer experience, allowing them to get a tailor-made policy, reduce costs, and even prevent accidents.