Changing Insurance Industry
Chapter 1
Digital transformation initiatives have the potential to drive customer engagement, open up new revenue streams and improve time to market on new products and services.
Although the Digital transformation is challenging for insurance domain, because the change must
happen without interrupting the flow of daily business. And the problem with that is that the
insurance landscape is in a period of dramatic change. Standing still means falling behind.
happen without interrupting the flow of daily business. And the problem with that is that the
insurance landscape is in a period of dramatic change. Standing still means falling behind.
Question is Why Insurance Companies need to Improve
We have seen the Price comparison sites have boomed in last decade, opening up the insurance world for the consumer. Current trend is that customers are no longer loyal to particular providers. They visit price comparison sites and choose the provider with the lowest price and the best online
reviews.
reviews.
The digital revolution has already delivered newer technologies which has done the dramatic business improvements for insurance companies.
What we have understood is that the Insurance Industry is the most competitive industry and has to face several challenges. The most common challenge is the consumer, to meet customer expectations and behaviour. Now day’s customers are tech savvy and are addicted to digitization and the new generation is already more attracted towards these technological changes. So to cope up in this this competitive market, Insurance companies need to understand and bring digital transformation in their workflow.
Because it’s no longer about beating the small competition, but the fast and adaptive beating the slow!!!
Now let’s understand, what the sources of disruption are and how they are emerging across the value chain to reshape the insurance industry.
Products. As new and innovative products like Semiautonomous and autonomous vehicles transforming auto insurance; connected homes could transform home insurance; new risks such as cybersecurity and drones will create demand for new forms of Cyber Insurance coverage; and Uber, Airbnb, and other leaders in the sharing economy are changing the underlying need for insurance.
Marketing. The drastic changes in consumer behaviour is challenging the traditional TV advertising and now the shift is towards more personalized mobile and online channels.
Pricing. The combination of customer data, telematics, and enhanced cloud computing power is opening the options to usage and behaviour-based pricing that could reduce barriers to entry for attackers that lack the loss experience formerly needed for accurate pricing.
Distribution. Due to new consumer behaviours and entrants are threatening traditional distribution channels. Nowdays the policyholders are inclining more towards digital distribution
models in personal and small commercial lines, while aggregators continue to pilot direct-to-consumer insurance sales.
models in personal and small commercial lines, while aggregators continue to pilot direct-to-consumer insurance sales.
Service. Consumers are expecting more and more personalized, self-directed interactions with companies via any channels like smart devices at any hour, much as they do with online ecommerce retailers.
Claims. Automation, analytics, and consumer preferences are the major factors to transform the claims processes, enabling insurers to improve fraud detection, cut loss-adjustment costs, and eliminate many human interactions. Connected technologies could allow policyholders to diagnose their own problems and report incidents.
Self-service claims reporting such as “estimate by photo” can create fast, seamless customer experiences. Drones can be used to assess damage quickly, safely, and cheaply after catastrophes.
Learn how CyberInsurify is helping in Self-service claims reporting to improve the customer experience.Visit https://cyberinsurify.com/claim-management-software.php