How Digitization is Changing Insurance Industry?

In recent years, the insurance industry has witnessed massive digital change across the globe. However, the way people purchase insurance has remained more or less the same for decades, unit the recent outbreak of Coronavirus.

The spread of COVID-19 has resulted in the boost of the digitalization of the insurance sector and the online purchase of the insurance policies. Since, the spread of the pandemic, people are browsing through health insurance and life insurance policies online to create a financial backup for themselves.

The COVID-19 outbreak has changed people’s attitudes towards the insurance sector. To avoid the consequences of not being insured, people these days have started valuing the importance of insurance. Similarly, along with the insurance buyers, the insurance companies have also started introducing advanced digital technology in the market to ease the process of policy purchase and to cater to the various requirements of the insurance buyers more efficiently.

These days, with the help of smart-phones and computers it has become easier for buyers to access the information. Moreover with various tools available online the customers can analyze products and can purchase the plans in an easy and hassle-free way. The transparency of policy prices and the easy process of an online purchase is resulting in the boost of the insurance sector which was once were dependent on the insurance agents.

Technology development like Artificial Intelligence, BlockChain, Big Data is helping the established insurance company to develop a new process of purchasing insurance driven by the needs of the insurance buyers rather than the demand of insurers to sell policies. Undoubtedly, the savvy insurance providers are using new technologies to satisfy the customers' needs and assist them in a better way.

Moreover, many life insurance companies have started avoiding core IT systems by capitalizing in software-as-a-service applications, which was before used for distribution, operation, commission processing, HR admin, and other tasks. With the introduction of these tools, the work process of the insurance industry has certainly changed. Insurance companies are converting and digitalizing the majority of the traditional back-office operations.

The insurance companies these days are restructuring the process of document review and information gathering so that the insurance holders can help themselves during the claim process and underwriting service.

Another important component of digital marketing is artificial intelligence (AI). AI has completely redefined and revolutionized customer engagement in the insurance sector, the base of which is trust. With the help of AI, the insurance industry is not only marketing the appropriate products but is also setting up virtual branches that engage the customers in a much better way and will help in the process of claim settlement.

With the assistance of artificial intelligence, the insurance seekers can now get 24X7 assistance fro the insurance company, they can renew the lapsed policy easily or can go through a smooth policy purchase process. Moreover, the AI also helps in the settlement of the claim process. Equipped with advanced algorithms, AI is action-oriented that also provides a recommendation of the products and services to the customers based on the interaction.

As per the experts, it is projected that by 2025, 95% of all the customers' interaction will be done by chatbots. Using artificial intelligence (AI), chatbots can interact with customers effortlessly, saving time and money for the insurance company. A chatbot can assist the insurance buyers through the process of filling the policy application and the process of claim filing, saving the interference of humans for more complex cases.

Bringing, in reality, the phrase of 24X7 customer service a virtual assistant can communicate with the insurance seekers24X7 via voice or text and clear any queries or doubts of the customers regarding the life insurance policy.

Wrapping it Up!

The insurance companies are always on a lookout for the latest and maximum developments in insurance technology. It not only helps them to stay ahead of competitors in the market but also helps them to deliver the best experiences, which the customers expect in the modern market. The digital advancement in the Indian insurance sector is surely changing the face of the insurance market and the insurance sector is now looking forward to enhancing its penetration into masses by providing the customers with a value-added service.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes