With help of the rapidly developing technologies, consumers are now better able to shop for everything from the comfort of their homes. To succeed in this digital environment, insurance companies need to embrace digital transformation. This is the reason, InsurTech companies are continuously developing digital tools and platforms for insurers to make insurance buying & selling easier than ever. As digital is the new normal these days, insurers need to follow the top tech trends in the industry to stand out.
Here you can read about top digital transformation trends in insurance that will shape the industry for many years to come.
Delivering Tailored Digital Products
Tailoring products or services to the individual needs of consumers is nothing new, but technologies like machine learning and predictive analytics have made it possible. Gone are the days when insurers would have needed to conduct surveys and research to understand customer needs and collect necessary data. With more and more digital channels generating data, insurers can now get ample data from channels like web browsing, social media, self-control platforms and apps for a better understanding of customer needs and deliver tailored products that meet consumers’ changing needs and demands.
The Rise of Customer Self-service
Self-service insurance portals are the new biggest trends in the insurance sector these days. Be it a funeral insurance agency, auto insurer or property insurance provider, investing in self-service dashboards can incredibly increase the insurance experience for both companies and customers. Thanks to advanced digital channels like online insurance portals, mobile apps, and digital dashboards, insurance customers can do more themselves without interacting with a support agent.
More and more insurance companies are investing in tools like self-service portals, insurance quote generators and AI chatbots to give customers better control over their policy accounts, payments and claims. This helps customers get details or information they need, without making phone calls or sending emails. Furthermore, this also frees up more time for insurance companies so they can focus on complex processes to increase productivity.
The Expansion of Digital Channels
In the past, insurance has been sold through traditional methods like insurance agents, resellers, call centers and company offices. The technological advances like websites, social media and mobile apps insurance companies can now sell more policies online and reach their target audience more effectively.
Along with official websites and apps, self-service portals and AI chatbots help insurers deliver excellent customer support and insurance experience. Insurance agents can also use such tools to skyrocket their sales amazingly.
The Rise of Predictive Analytics
Predictive analytics is a technology used to make predictions about future events and needs. Insurance providers are increasingly using this technology to identify risk factors or fraud and determine the price for their insurance products. For example, the use of predictive analytics can help insurers understand if the customer is likely to have an accident in the future, the insurance company can price the policy accordingly to bear as less loss as possible.
IoT (Internet of Things)
IoT or the internet of things technology helps insurance companies get accurate data to improve the risk assessment and give insurance companies more opportunities to understand customer needs and offer enough coverage. Insurers can connect their systems with wearables and sensors to generate useful data and then use that data to predict future events and incidents. When IoT is successfully integrated with real-time analytics, it helps insurers to make informed decisions regarding policy prices and benefits.
The Rise of Low-code/no-code Development in IT
Normalization of low-code or no-code development in the IT industry is another major digital transformation trend in the insurance sector. Companies can use no-code development tools to create advanced tools and portals for insurance customers instead of relying on traditional development methods. More and more insurers are now offering no-code tools that focus more on compliance and security. This reduces the development workload on the enterprises so they can focus on complex processes and tasks to improve overall operational efficiency.
In this fast-paced digital landscape, insurance agencies need to keep up with the latest tech trends if they really want to survive and thrive. They must be using advanced tech tools and solutions to meet the expectations of modern consumers while competing in the race of digital transformation and staying relevant. This will not help them deliver tailored products and provide an excellent insurance experience but will also help them scale accordingly whenever needed.