Since the launch of the AWS cloud platform in 2006, cloud technology has evolved tremendously and enhanced the functioning of ML and AI-powered models of different businesses. Lately, even the insurance industry has integrated the AWS cloud platform on a large scale to pave its way into digital transformation.
In today’s digital age, there is an abundance of data in every industry. And the insurance sector is no exception to it. So, to have instant access to this large pool of data for effective business management, Indian insurance companies adopted cloud technology. Following the emerging AWS trends not only helps insurers replace manual efforts but also gives added assistance for seamless execution of their operational processes.
As per reports, there is a vast expansion in the Indian cloud market, which is expected to witness a 26% growth by 2022. Hence, it is interesting to see which AWS trends can impact the Indian insurance industry in 2022.
What is AWS?
Amazon Web Services, abbreviated as AWS, is a secure platform for cloud services that offer content delivery, database storage, computation power, and other advanced features to improve the functioning of businesses and foster their growth.
With the insurance industry still being dominated by heavy paperwork and human-based manual processes, automating repetitive tasks through futuristic cloud-based digital solutions like AWS can increase the workforce's productivity and enhance workflow efficiency.
4 Best AWS Trends in 2022 for the Insurance Industry
Insurance buyers of the modern age are digitally driven. As a result, insurance companies must implement the latest technologies to offer a better customer experience and thrive in the competition.
Thus, here are the top 4 AWS trends insurance companies must look forward to in 2022.
Internet of Things
AWS IoT Greengrass is an IoT-based open-source cloud service that enables insurance companies to create and manage device software. It increases the data availability of every customer, helping insurers do more accurate risk profiling.
Besides, based on the large volumes of data collected through networked IoT devices, insurance companies can detect dubious claims, assess risks, and offer personalised services to customers.
The future of development in the insurance industry is marked by implementing cloud operation services like Amazon DevOps Guru, Amazon Sagemaker, etc.
Powered with ML algorithms, these cloud-based services help insurance companies fully automate their business infrastructure and leverage their system's performance and availability. In addition, it sheds off a lot of manual loads, eliminating routine tasks and reducing human-made operational errors.
Also, this cloud service can effectively analyse the operational data and give intelligent ML-powered insights or suggestions to resolve issues in underwriting, claims processing, and expense management.
AWS offers a wide range of pre-trained AI services to infuse intelligence into any insurance company's workflow and operational processes.
For instance, Amazon Textract can extract important textual data from the scanned documents submitted by policyholders. In addition, Amazon Rekognition allows insurers to automatically analyse images and videos of medical bills or physical damages for easy claims processing of life and non-life insurance policies.
Besides, Amazon Lex can help insurance companies incorporate chatbots into their system to increase customer engagement. Thus, using various other AI-powered cloud services of AWS, insurers can offer personalised recommendations to customers, improve data safety and security, prevent frauds, etc.
Hybrid Cloud Technology
The hybrid cloud computing architecture plays a significant role in maintaining insurance businesses' operational and developmental processes with the evolving market demands. Therefore, AWS offers numerous hybrid cloud services, such as AWS Outposts, AWS Direct Connect, AWS Code Deploy, and more, which provide a broad set of solutions, including networking, data integration, security, computation, storage, and authentication.
Insurers can opt for any hybrid cloud architecture based on their specific requirements and pay only for the needful services. Thus, it will help insurance companies accommodate sensitive customer data as and when needed to adapt and scale their processes with the dynamic needs.
Virtual storage and operations have become a significant part of today's digital world. The large-scale implementation of cloud technologies in different industries shows that digitisation will become more dominant in the future. Thus, all insurance companies must adapt to this evolution and recognise the importance of the emerging AWS trends mentioned above to gain a competitive edge.
Top 4 AWS Trends Insurance Companies Must Watch Out for in 2022
By: Eicore Technologies | Wednesday, 06 April 2022
Data analytics is revolutionising the Indian insurance industry, and companies quickly realise the need to adapt digital transformation for better growth and enhanced customer satisfaction.
Collecting a humongous amount of manual data that gives insurers access to customer perceptions is challenging. But as insurance companies are mainly data-driven, using data analytics to gain accurate data for increased workflow efficiency has become a necessity.
So, to deliver optimum business performance, utilising the data patterns obtained from data analytics can be highly beneficial for insurance companies. It will not only mitigate risks but also enhance their overall growth.
What is Data Analytics?
Data analytics refers to the analysis of collected raw data from which insightful inferences can be drawn. It enables organisations to accurately analyse real-time, unstructured, structured, historical, and qualitative data to identify precise data patterns quickly.
These meaningful interpretations help organisations generate valuable insights to automate decision-making and increase workflow efficiency. In addition, it encourages companies to become more adaptive to digital technologies and innovative methods.
How Does Data Analytics Influence the Indian Insurance Industry?
The influence of data analytics on the Indian insurance industry is hard to overlook. Over the last few years, insurance companies relying on data analytics have tremendously benefited in various aspects such as fraud reduction, risk profiling, claims management, and more.
So, here we will discuss how data analytics impact the critical operational processes of insurance businesses.
Facilitates Better Claim Management
With data analytics, insurers can easily extract and process data from multiple sources and determine the hidden trends. This, in turn, makes it easier to detect whether the claim is legitimate or not when customers raise a claim request.
Also, data analytics can be highly beneficial for handling long-tail claims. The automated analysis of claim histories enables insurers to predict the overall cost, which further helps them estimate the amounts for instant payment and future claims.
Manual data collection, processing, and analysis become difficult while managing multiple claims simultaneously. So, equipped with AI capabilities, data analytics automate the entire process by offering real-time updates and reducing manual labour.
Detects and Prevents Fraudulent Claims
The insurance industry continues to be troubled by fraud claim issues. As per reports, Indian insurance companies lately lost over $6.25 billion to frauds.
Hence, most companies started implementing data analytics to detect fraud probabilities and prevent massive financial loss. Expectedly, this digital adoption significantly mitigated the risks of fraudulent claims and increased their business efficiency. How?
Well, based on historical and third-party data, predictive analytics easily detects claims having dubious traits or patterns and flags them. Also, as data analytics facilitate real-time data monitoring on an extensive set of data obtained from digital channels and social media platforms, fraud prediction and detection becomes faster and more accurate.
Improves Risk Assessment and Underwriting
Most insurance companies find underwriting and risk profiling a complex and time-consuming process. But advanced data analytics can enhance risk assessment and improve the underwriting decision quality.
Data analytics aids in the effective management of a huge volume of data obtained during the underwriting stage of a policy. Also, it helps detect discrepancies, if any, in the gathered data.
Besides, AI-based data analytics can easily measure the data parameters related to risks and determine the key risk indicators for better risk profiling. It acts as a data feed layer in every phase of the risk management process, offering accurate risk predictions, speeding up the underwriting process, and enhancing the overall workflow efficiency.
Enhances Customer Experience
Data analytics gives insurance companies valuable insights into their customers' interests and expectations. Through effective analysis of customers' buying and behavioural data, they can offer every consumer personalised services.
Nowadays, most customers expect 24x7 online assistance from their insurers. Hence, chatbots come in handy in such cases. Being data-driven and integrated with predictive analytics features, conversational chatbots can efficiently respond to customers' queries, guide them to find the right insurance policies, address their claim requests, and perform many more tasks.
So, data analytics help insurance companies understand the prospective needs of their consumers, making their business more customer-centric and leveraging the end-user experience.
With the large-scale digital transformation of the insurance industry, insurers must strive to use their best efforts to stay relevant in the future by meeting the evolving demands of their customers. So, data analytics can keep insurance companies updated about their customers’ changing requirements and enhance their business growth.
Insight Into the Impact of Data Analytics in the Indian Insurance Industry
Consumers of the modern age want instant gratification from the brands they interact with. As a result, the insurance industry needs automation powered by artificial intelligence to boost their workflow efficiency and help them deliver a better claim experience. Thus, straight-through processing (STP) is the most viable solution to help insurance companies gain greater accuracy and a competitive edge.
Besides, when integrated with claims processing, this automated method can help insurers keep up with the dynamic demands of modern-day consumers. Hence, it’s high time for the insurance sector to start implementing the STP claims engine and leverage the overall business.
What is the Importance of Straight-Through Processing Claims Engine for the Insurance Industry?
Insurance companies need to deal with large volumes of documents for claims processing regularly. So, having an intelligent system like STP that can process financial transactions electronically without manual intervention is beneficial.
Adopting this digital system results in shorter cycle times, reduced errors, and improved customer experience.
So, here are the various factors contributing to the significance of STP claims engines in the insurance industry.
Enhances Claims-Related Processes
Using STP in primary claim activities such as first notice of loss (FNOL), customer interactions, payments, subrogation predictive analytics, fraud analysis, and document management can eliminate manual intervention and speed up claim processing, making it more efficient and productive.
Aids Fast Track Claims
Integration of the STP in fast track claims helps insurance companies migrate some major automation-related elements such as customer notifications, automatic segmentation, and auto reserving for all claim types. Thus, it increases standardization, reduces expenses, enhances customer experience, and boosts overall efficiency.
Reduces Human Error
Automating claim processing and payment disbursement through STP reduces the need for human intervention, leading to a significant reduction in manual errors. Also, overhead costs get reduced. Although total human intervention cannot be eliminated, replacing repetitive manual tasks in claims processing with automation ensures better accuracy and speed.
Improves Customer Experience
STP reduces turnaround times and speeds up transactional processes. So, claims verification and settlement processes can be quickened, and the errors in the same can be easily eliminated, allowing insurers to improve their end-user experience. With more customers demanding faster results, STP would make a huge difference.
How to Build an STP Claims Engine?
Straight-through processing involves several processes and technologies, with data collection and artificial intelligence being the basic yet crucial phases.
So, the steps of building an STP claims engine are as follows.
Provision for Data Collection and Management
Genuine information of policyholders needs to be gathered in the database for validating them before claims processing. So, to collect and store data properly, the following technological elements must be integrated into the STP claims engine.
OCR Software: Optional character recognition enables the conversion of physical documents to digital copies and scans them to extract adequate data, which can then be fed to the downstream systems.
Digital Signing Module: This technology can be used to digitally obtain consent and approval from the policyholders to use their details, eliminating the need for paper form filling.
Reconciliation Tools: Insurance companies must ensure that their database is well-synchronized with real-time data upload and updates taking place across the system. And for doing so, they must incorporate effective reconciliation tools into the STP.
Integration with Artificial Intelligence Capabilities
Although AI is a must-have technology in almost all insurance-related processes, adding its elements to the STP can render hassle-free claims processing. So, ensure that the following AI-driven components are integrated into the STP.
Workflow Tools: While building the complete STP system, insurers can define specific business rules. These pre-defined rules will enable the system to route documents automatically during claims management.
Monitoring and Analysis Tools: AI-driven viewing, monitoring, and mapping tools can enable insurance companies to view, monitor, and map claims-related data from various points across the STP system. As these tools come with prediction and analysis capabilities, the system helps in automated, fraudulent claim detection, claim document verification, claim amount calculation, etc.
Electronic Payment Module: The AI-powered STP system will automatically initiate electronic funds transfer on successful claims document verification, facilitating the digital disbursement of payments to policyholders while eliminating cumbersome manual payment processing mechanisms.
As per reports , the Indian insurance industry registered a growth of 17% in 2021 due to digitization. It shows that adopting automation will be indispensable for all insurers shortly. Hence, immediate implementation of the STP claims engine can be helpful for companies in the long run.
Building the STP (Straight-Through-Processing) Claims Engine: The Ultimate Guide
Over the last few years, the insurance needs of new-gen, tech-savvy customers have drastically evolved. But with old legacy systems based on dead coding languages, insurance companies struggle to offer enhanced service quality that the digital generation expects.
Thus, the limitations of the existing infrastructures have made many insurers opt for large-scale digital transformation to facilitate innovative services and fulfill customer expectations. And for doing so, the first step is to replace or modernize your legacy core systems.
Legacy system replacement bridges the gap between your current insurance system and making you a progressive digital insurer in the future. So, today, we will discuss how legacy system replacement can leverage your digital transformation journey.
Why do you need legacy system replacement?
Agility and flexibility are the primary reasons legacy system replacement is highly needed in the insurance sector. Unfortunately, old mainframe-based legacy systems do not integrate with today’s flexible open system platforms. Hence, insurers using outmoded legacy systems fail to address modern business demands and lose ample growth opportunities for the future.
However, apart from these, the following are some more driving forces behind legacy system replacement.
It is expensive to maintain legacy systems, applications, and infrastructures. As per a report by PWC, maintenance of old legacy systems consume 70% of an insurer's IT budget.
There’s a shortage of employees having adequate skills in hard-coded legacy languages like COBOL, RPG/400, VisualBasic, etc.
Step-by-step technological journey for legacy system replacement
Gone are the days when replacing old legacy systems took several years, costing a hefty amount to organizations. Now, by following the right approach and moving step by step, insurers can easily opt for legacy system replacement to leverage their digital transformation.
So, here are the stages that you need to undergo for effective legacy system replacement without hindering your current workflow.
Phase 1: Built a robust new foundation with an early impact
In the first stage, you must focus on forming a sturdy foundation for the target architecture while positively impacting customers’ experience. By the termination of this phase, insurers must have developed new data, integration, and consumer engagement layers. But the legacy platforms are operated in parallel so that their data can be extracted out by the new data layer of the new architecture.
However, while building the new technological foundation, insurance companies must try to improve customer experience by developing modern UI for digital channels. And for doing so, you can get the utmost support from the new data layer. Also, this new architecture comes with data analytics capabilities, which enable you to offer the latest digital services like location-based health insurance services, comparison of peer in auto insurance, and retirement and life insurance advice.
Besides, early lighthouse projects such as fraud detection, consumer self-services, and cross-selling can easily uphold the value of this replacement in the first few months. Thus, on successful implementation of the new framework, customers will start to experience the potential of the latest digital insurer.
Hence, insurers shall use the first stage to prepare for their digital transformation journey and mobilize their organization. In addition, it frees up funding by identifying quick-win efficiencies like the suspension of existing projects, improvement in procurement and sourcing, and the reduction in basic expenses.
Phase 2: Digitization of end-to-end customer journeys
A near-term value is created by automating customer journeys by implementing business rules to the newly created data layer in the 1st stage. In addition, the exclusion of expensive manual work processes and solutions adds significant value to your digital transformation landscape. Also, this stage offers top-line growth to your insurance business by enhancing the consumer experience, thereby increasing retention rates and decreasing attrition rates.
Thus, insurance companies develop new decision management and smart processing layers throughout this phase while extending the customer engagement layer. As the digital data layer is in place, insurers can quickly digitize operational processes like claims management. However, legacy systems are kept untouched.
Besides, in this phase, insurance companies can begin reimagining processes and products related to customer journeys. Also, by facilitating digitized interactions and adding enhanced functionalities to the decision and smart-process layer, insurers can render top-notch experiences to policyholders.
For instance, you can provide your customers with real-time results like offering accurate life insurance advice customized to the consumer’s requirements or facilitating claim processing in a single day under extreme circumstances.
Phase 3: Embarking on an end-to-end agile and flexible platform
Core insurance functionalities like PAS and underwriting are brought online in this stage. It is accompanied by a new product engine rollout that can facilitate flexible product offerings while eliminating IT processes and reporting complexities. Also, being highly configurable, these offerings can easily meet market demands.
This new online platform is usually formulated on a cloud-based PaaS based on the concept of open architecture. Hence, insurance companies can easily replace or modify individual elements based on future needs and at a lower cost.
Eventually, insurers migrate all their customers to the new modern platform. All relevant data is also transferred to this platform, which now serves as the record system. After that, insurers start using this platform to the fullest to run their businesses. Thus, the entire customer journey is digitized by decommissioning legacy systems in this phase.
Well, this new technology-based platform supports advanced features that require the usage of full-target architecture like real-time underwriting. Product experience is simplified on this platform while generating newer possibilities for service offerings and product combinations for customers. Also, this platform enables experimentation with new business models for enhanced outcomes.
The generation has changed, and customer needs are constantly evolving. But traditional insurance legacy systems fail to cope with these dynamic requirements. Hence, replacement is a better decision to make. Insurers adopting the above-mentioned phased approach to transform their businesses digitally will witness a manageable replacement journey that will produce enhanced values for both short and terms.
Why and How Legacy System Replacement Serves as the First Step in Digital Transformation?
Amidst the wake of the pandemic, many businesses have opted for massive digital transformation in their systems and workflows. Many insurance companies in India have shifted to the digital world by including advanced technologies like cloud computing, data analytics, etc. The primary goal of digitalization is to achieve agility, ease in workability, enhanced workflow, and save on additional expenses.
Even though digitization has taken place rapidly, there are still some limitations in the systems. A few insurance companies still lack a robust background for making the inclusion of better-digitized business models. Thus, every insurance business must focus on taking one step ahead to turn themselves into a cognitive or a coherent one. It will invigorate decision intelligence into your products, processes, and customer interactions, leveraging your end-user experience.
But how would this amalgamation of digitalization and digital intelligence take place to bring about significant growth? Here, have a look!
What does cognitive business mean?
Cognitive business in the field of insurance refers to companies that embrace cognitive or coherent capabilities in their infrastructure. They infuse digital intelligence into their enterprise's people, processes, technologies, and systems for more effective data processing and quicker decision-making.
What do cognitive applications mean in an insurance business?
Cognitive applications tend to learn and interact naturally with people, extending the arena of their core capabilities.
The inclusion of cognitive applications in insurance businesses helps agents and their expert teams to make better decisions by going through the complexity of big data in all forms and varieties.
Cognitive applications are equipped with deep learning and machine learning algorithms. It also focuses on implementing natural language processing, semantic contextual understanding, reasoning, etc., for better decision making.
Thus, these apps make the most out of relevant content and facilitate detailed subject matter expertise amongst the insurance company’s employees, leveraging its growth.
How can cognitive applications help in the growth of insurance businesses?
Many insurance companies have taken steps forward to incorporate cognitive applications in their system.
Upon implementation, cognitive businesses use data to create a knowledge base and gain better predictive insights for better accuracy in decision-making. With the adoption of cognitive models, insurance businesses can thus learn and adapt to newer market trends and forces.
The core basics of cognitive or coherent applications help insurers create a significant advantage over their major market competitor. Also, it renders them a seamless ability to handle any disruption or other challenges.
How are insurance businesses adapting to cognitive models?
Apart from just digitizing workflows and processes, insurance companies walk a few miles ahead to make their business coherent and logical. The use of machine learning and AI are effectively improving the growth of cognitive enterprises.
So, here is how insurance businesses are adopting the current coherent models in their systems.
Implementation of chatbots
Many insurance companies are switching to chatbots to make their digitalization journey easier. Implementing AI chatbots is a part of cognitive models, which help insurers gain more data directly from their customers.
These chatbots can facilitate the right insurance policy products to the new leads. Also, exiting policyholders can easily interact with the companies and resolve their queries, if any, through custom chatbots.
For instance, as per a recent report, LIC introduced LIC Mitra, their virtual assistant, to render an enhanced user experience. Also, New India Insurance launched BIMA Bot to automate and improve its customer handling processes.
Automation of claims processing tasks
Claims processing is often a crucial area that an insurance company deals with. It takes a lot of manual intervention to get the claim settlement done. So, to add better speed to such processes, insurance companies are replacing their manual workforce with automated solutions.
Implementing digitized systems with cognitive capabilities impeccably helps in fraud detection, quick claim settlement, etc. These cognitive applications learn from the existing use cases and knowledge base and train themselves to make intelligent claim processing-related decisions.
Adoption of smart systems for enhanced workflow
To embrace cognitive models in their infrastructure, insurance companies incorporate drones to track captured images and videos to appraise property damages better. Also, satellite pictures and tracking drivers' behaviour can automatically help determine risks and policy premiums, respectively.
Thus, these cognitive data platforms help insurers automate processes and make systems take intelligent decisions on their own, easing task accomplishments. From handling cognitive workloads to facilitating cognitive engagement in the workplace, cognitive applications streamline the entire workflow in insurance companies.
Now, the insurance sector is striving hard to catch up with digital growth even faster. Thus, almost all insurance companies are adopting new transformative technologies that have cognitive capabilities to acquire utmost accuracy in work processes and facilitate the ultimate customer experience.
Transformation of Insurance Companies from Digital Businesses to Cognitive Businesses
By: Eicore Technologies | Wednesday, 16 February 2022
The pandemic has given the insurance industry a tough time by putting the workflow into utter chaos. COVID-19 struck with its inauspicious thunder without a warning of lightning. Safe to state, no sector in any part of the world was prepared for this disruption of the workforce and business continuity plans. And as is known, a business progresses only when there is a smooth workflow.
Well, the pandemic has been overstaying its uninvited welcome, but insurance companies need to continue their business. Hence, despite the turmoil ushered by the pandemic, it has also led organisations in the insurance industry to adopt a new technological means of ensuring business continuity, i.e., system automation. So, let’s see how insurance companies integrated system automation into their business infrastructure to sustain themselves in this competitive digitised world.
What is System Automation?
System automation refers to an integrated software system designed to automate tasks in insurance companies to eliminate the need for human intervention. With in-built AI and ML algorithms, data analytics capabilities, cloud technology implementation, and virtual assistance features, an automated system performs several insurance processes on its own, reducing human labour and offering a better contactless digital experience to customers.
According to reports, due to system automation and complete digitalisation of insurance processes, the pandemic augmented the entire insurance market while growing at 9% the previous fiscal year. Thus, the tough time brought by the pandemic challenged insurance businesses and steered them to use software-based processes for the smooth running of their internal operations, which, in turn, yielded good growth.
How Does System Automation Ensure Business Continuity During Pandemic?
Previously, insurance companies paid trivial attention to automation. But it took a pandemic for insurers to start mandatorily adopting technological innovations. So, here’s how system automation can benefit your business.
Replaces Manual Labor
One of the major effects of the pandemic has been the shortage of human resources. The primary protocol to avoid COVID-19 transmission has been to distance humans from one another and maintain a contactless mode of communication.
So, this is where system automation enters the scenario accompanied by machine learning and artificial intelligence technologies to automatically manage the workflow without requiring a human workforce.
The AI-ML algorithms integrated into these software-based systems can process a large pool of policy data to produce analysis reports on risk evaluation, premium's price determination, etc. These reports allow insurers to make effective decisions without undergoing hectic manual efforts.
These systems can also train themselves on more data and learn from it for more improved output. Thus, it eliminates the need for physical human intervention in product development and keeps the supply chain working to facilitate business continuity.
Automates and Manages Repetitive Tasks
Managing tasks, with or without the pandemic, has always been one of the biggest challenges of the insurance industry. However, the post-pandemic days have made task management even more challenging due to the sudden interruption in the workflow and management of tasks. Especially, managing repetitive works like data extraction, data updating, data messaging, data validation, and other data processing-based tasks has become difficult.
Thus, task automation has become feasible by adopting software systems integrated with data analytics and cloud computing technologies. The AI-driven model in the Cloud platform facilitates automatic data extraction from the Cloud-stored database, which is further processed and analysed by the data analytics capability of the system.
System automation thus aids claim processing, underwriting, and customer service. In addition, chatbots play a crucial role in automating the customer handling task, leveraging end-user experience.
As the digital world expands and advances, insurance businesses quickly resort to system automation. Business continuity must be present despite the ill effects of the pandemic.
Well, it is essential to recognise how system automation can benefit your business because it will enable your insurance company to maintain an organised workflow and bridge the gaps in their business continuity plan. Therefore, the effective implementation of software system automation is a practice that can no longer be neglected.
System Automation - The Technology Adopted by the Insurance Industry to Maintain Business Continuity During Pandemic
What does the future hold for insurance industries in the context of technological advancements? As of now, it seems that all the technologies and systems being used till date are adequate, and new ones probably won't be needed. Nonetheless, it's a digital world, and it's never static. As a result, it is characterised by progressive developments and high-tech advancements, emerging 10 years down the line.
Among the advanced technologies, artificial intelligence has already dominated most industries by making the workforce shift from manual to automated systems. And with the increasing integration of such high-tech systems in the insurance industry, insurers will have to keep on with the changing business scenario and landscape.
Insurance companies must look into the industry's future and understand how forward-thinking technologies will impact policy distribution, premium pricing, claim processing, and underwriting. Gaining this understanding will enable them to work according to the latest technologies to stay at the top of the insurance game.
Technology Advancements for the Future of Insurance
With the turn of events brought by the pandemic in the work front, insurance companies have been compelled to switch to dynamic technologies and rely on automation. PwC reports that 82% of Indian insurance companies have adopted artificial intelligence after the pandemic.
So, here's a look into how the future technological advancements will impact the insurance industry in the next 10-years.
A study estimated 47% of buyers rely on chatbots to buy any product. And insurance policies are no exception to it. Thus, chatbots play a significant role in customer acquisition and after-sales service. Besides, AI-powered chatbots can be very helpful in managing user operations like goal setting and claim filing, enabling insurers to address customer queries more flawlessly.
Thus, chatbots incorporated by insurance companies will optimise customer experience and reduce the workload to a large extent. Using a rich database, these AI-driven systems will strive to enlighten customers about various things such as policy suggestions, policy comparison, and process flow.
Robotic Process Automation
The insurance sphere is stocked with several administrative tasks, which are repetitive. But unfortunately, most insurance companies still stick to manual labour for these tasks. So, this is exactly where RPA (Robotic Process Automation) can come into action.
It will enable insurers to process data from many systems more accurately and quickly. Also, it will eliminate errors in data processing, thereby reducing operational risks. RPA's effective implementation will minimise manual tasks and increase the workforce's efficiency.
Studies suggest that predictive analytics reduced underwriting costs and increased the profits of more than two-thirds of insurance companies in the USA. Hence, it is expected by 10 years; predictive analytics will even dominate the Indian insurance industry.
Predictive analytics collects data from various internal and external sources such as social media, telematics, and agent and customer interactions for enhanced management of operations like underwriting, claims processing, etc. Insurers can even use this data to identify concealed clues and predict fraud.
AI and ML
Technological advancements in Artificial Intelligence and Machine Learning renders computers a higher memory capacity, global connectivity, enhanced computing power, and more exclusive features.
Computers and software systems operated on AI-ML algorithms can process data better and faster than humans, which can be further used for fraud prediction, underwriting, claims processing, and customer experience. So, instead of detecting and repairing an issue, AI and ML enable insurers to predict and prevent the problem, which fosters better risk management.
IoT will give insurers access to real-time data rather than historical data or information obtained from uncertain external sources. Thus, insurers can identify risks using this data and prevent losses. Also, they can enhance internal processes and provide a better customer experience through customised products.
While the future is unseen, technological advancements are sure to keep emerging every year. And for insurance businesses to keep progressing, utilising these technologies is necessary to streamline their operations and leverage customer experience. So, instead of viewing technological developments as a complexity, insurers must start perceiving them as an advantage.
Future of the Insurance Industry in 10 Years - Decoding the Technological Advancements
Life insurers will encounter many challenges in future if they do not undergo digital transformation. Among all, the fundamental challenge is time, i.e., the industry is too slow. For instance, the life insurance policies found in books may have been sold almost 75 years ago, but they are still not paid out. In addition, long-term complexities and unreliable diluted data stored on legacy core systems complicate the technology world for life insurers.
So, to do away with this issue and help life insurers meet the dynamic customer needs, it is essential to modernize policy administration systems (PAS). Implementation of newer technologies in your exiting insurance architecture or installing completely new automated software can enhance the speed-to-market of your life insurance products and render a superior consumer experience. However, for either case, effective policy data migration is obligatory.
So, today we will share how to perform PAS modernization and data migration to accelerate your life insurance business.
What is the importance of PAS modernization and data migration for life insurers?
Though relatively expensive, today’s policy administration systems are pretty flexible, simplifying various core life insurance processes. Also, it is a key to reaching more millennial and Gen-Z policyholders.
Hence, this technology implementation will give your life insurance business a competitive edge and make your company future-ready. Additionally, studies suggest that due to the modernization of policy administration systems and effective data migration, the life insurance industry is anticipated to grow at a CAGR of 5.3% between 2019-2023.
So, let’s explore the benefits of modernizing your life PAS through proper data migration in detail.
Easy product development
Unlike the closed hard-coded architecture of ageing life insurance policy administration systems, modern PAS are rule-based and work on logic. Hence, it becomes effortless to develop innovative policy products or riders and add new features and benefits to the system, facilitating enhanced flexibility and scalability.
In the case of life insurances, a policyholder may not request for claim settlement for years or months. But sending them regular invoices is necessary to foster customer satisfaction and loyalty. Hence, equipped with data processing and analytics capabilities, modernized PAS will facilitate automated invoicing features and support multiple payment modes to give life insurers better control and visibility of the billing operation.
Seamless claims management
In legacy core systems, claims processing is a time-taking and hectic process. Moreover, due to poor and diluted data quality stored in ageing database systems, it becomes often difficult to analyze claims prior to settlement and prevent claim frauds. Thus, life PAS modernization with effective policy data migration connects claims and policy systems to better align with policy clauses and quick claim analysis. This, in turn, detects dubious claims and facilitates easy claim settlements, rendering an enhanced customer experience.
Reduced IT resource expenses
Though the initial investment for life PAS modernization is relatively more, it is a cost-effective and profitable implementation for the long term. A swift and completely modernized policy administration system removes the requirement for repeated additional tech upgrades that are not only costly but also confusing to implement. Besides, integrating a robust data migration capability to your modern PAS can automatically migrate business books without requiring IT resources, thereby cutting substantial IT costs.
How is it done?
The current life insurance market landscape makes it difficult for ageing systems to keep up with the rising demand for intuitive and hyper-personalized customer experiences. Hence, life PAS modernization and seamless policy data migration are necessary to thrive in this changing insurance landscape. But how to do so?
Well, the following is a step-by-step guide to implement PAS modernization for all life insurers out there.
Select the right PAS modernization method
To make your PAS modernization project a success, first, you need to choose a suitable method. Then, you can either buy new software from a reckoned vendor and establish a new system for your life insurance business or integrate modern solutions into your existing legacy system.
If you get your PAS modernization project outsourced, you need not require in-house resources. The third-party vendor will offer you comprehensive technical support, from software integration to life insurance process management, relieving you from any hassle. However, the initial cost of implementation would be higher in this case.
On the contrary, enhancing its capabilities can be an ideal choice if your existing core system and integration architecture are sufficiently mature. It preserves your previous investment and facilitates enhanced scalability to PAS. But this method requires more resources and enhanced support from IT and business leadership.
So, each method has its merits and demerits. But each of them promises to give long-term ROI. Thus, opt for the right PAS modernization solution depending on your requirements.
Perform safe data migration
The optimal data migration process includes exporting and transforming policy data from the source system to the target system. Here, the target system refers to the modern PAS.
This data migration process shares some standard architectural components, including Source System, Source System Extract Engine, Transform Engine, Target System, Load Engine and Reconciliation Solution. Only if the policy data passes through these components effectively, the migration process would be successful without data loss.
However, during the process, perform data migration at the company level, as it makes decommissioning of legacy systems feasible. Also, ensure that you migrate records as quotes instead of live policies. It helps in easy and hassle-free billing for the upcoming cycle.
Thus, data migration adds extra functionalities to your modern policy administration system. Hence, modernize your PAS by fortifying data governance and security through effective data migration.
In a nutshell, life PAS modernization accompanied by effective data migration will help you revamp the insurance experience for meeting modern customers’ financial goals and milestones. Moreover, with the best solutions, PAS modernization will yield life insurers ample benefits of enhanced business intelligence.
How Does PAS Modernization and Data Migration Impact Life Insurers?
We live in a digitized age where the insurance industry has been lately striving to make its presence entirely online. And the COVID-19 pandemic has catalyzed this process of digitization. Almost every insurance niche organization depends on cloud technology for their day-to-day operations, and health insurance businesses are no different.
Well, for the health insurance sector, underwriting is a crucial business function that got severely impacted due to the COVID-19 pandemic. Since it impacts business profitability and competitiveness, insurance companies must automate risk assessment and underwriting processes to facilitate contactless experiences to employees and customers. And for doing so, nothing can be better than implementing cloud computing into your existing insurance architecture.
As per reports, due to the COVID-19 situation and the increasing pace of cloud and other digital solution adoption in the Indian insurance industry, the online sales of health insurance policies have shot up to 30%. It evidences how effective digitalization can be in enhancing health insurers’ operations. So now, let’s see how cloud technology contributes to health insurance underwriting and future-proofs your business.
Easy data access and secure storage for the underwriting of data
Updated and accurate data is necessary for effective health insurance underwriting. Thus, cloud-based storage solutions give you easy access to unstructured and structured data obtained from curated data sources. Besides, the data stored on the cloud is highly secure due to the encryption of the transmitted data over several networks, lessening the chance of data theft.
The best thing about cloud computing is that it can even process unstructured data and offer valuable insights to health insurers to enhance underwriting outcomes. In this health insurance industry, wearable data is one of the most preferred unstructured data, as there is a direct relationship between this data and the health of the person who will get insured. So, your cloud-integrated platform can easily pull and store such non-generic data from wearables like smartwatches, fitness bands, etc., for better risk analysis and optimum price determination.
Besides, cloud-stored data is more consistent. As everyone from your team accesses the same data virtually, its quality is well-maintained. Also, if any revision or update is made in the cloud database, it is notified to everyone in the team, reducing the chances of inconsistent data reporting and confusion among employees. Thus, cloud technology not only renders easy access and secure data storage but also controls data quality for more effective health insurance underwriting.
Better risk assessment for proper price determination
Most cloud service providers now offer completely managed AI-ML integrated services to develop, train, and deploy ML models to enhance underwriters' efficiency and eradicate non-core activities. These technologies can facilitate hassle-free data aggregation and ensure data integrity and quality. As the health insurance industry primarily deals with unstructured data, ML-based NLP systems can easily determine contextual insights and relationships. Hence, AI-ML model integrated cloud platforms can execute customized risk profiling.
Also, a few cloud platforms come with ML-based video and audio processing mechanisms to offer virtual contactless risk assessments to their clients. Thus, a potential AI-ML model integrated with the cloud technology can efficiently identify health insurance underwriting risks like age, medical history, etc., particular to the insurer’s needs. Then, cloud computing integrates all these risk data into a single environment, allowing insurers to make a better decision about the risk and determine the premium accordingly.
Besides, automated underwriting models can also be developed based on AI-ML algorithms in your cloud platform to avoid cognitive biasing and perform more effective underwriting. If needed, along with the risk analysis reports and premium pricing generated by your cloud platform, human supervision can also be added to leverage the entire workflow. Thus, cloud computing can help health insurance underwriters mitigate frauds and risks while improving and reducing disaster recovery costs.
Easy internal collaboration for quicker operations
It is often seen that due to lack of internal communication in an insurance company, underwriting and policy issuance gets delayed, resulting in loss of customers. So, this is where the collaboration technologies of a cloud-integrated insurance platform can come to your rescue. It improves underwriters’ coordination with other departments and members to ensure that the customer lifecycle is appropriately managed.
Collaboration technologies allow underwriters to send or receive files, edit data in real-time, share online chat-based workspaces, and do audio and video conferencing with their teammates for getting in-depth knowledge required for effective risk profiling. Cloud also enables underwriters to collaborate with agents and the claims management team in real-time to write new lines for your business and understand the claims model better for providing the correct price at the right time respectively.
Besides, easy version control, co-authoring of documents, file syncing, and instant transfer of large files are some prime features offered by cloud-based collaboration tools, which facilitates effective internal communication and leverages underwriting outcomes. Thus, collaboration through the cloud connects underwriters to every team of your health insurance company to maintain stability in risk analysis and premium pricing while saving time in offering a quote and helping win more deals.
Thus, it is evident that cloud technology has every kind of remote facility that a health insurance underwriter ever needs. Hence, if you want to enhance your operational efficiencies and boost profitability, it is imperative to opt for cloud-based solutions to transform your underwriting process digitally. However, always follow an action-based and customer-driven strategy for enhanced growth.
How the Cloud Technology Builds a Robust Foundation for Health Insurance Underwriting?
By: Eicore Technologies | Thursday, 27 January 2022
With the rapid growth of digitalization in many areas of the insurance industry, the need for smart reporting has become highly imperative. Insurance businesses must collect accurate data from trustable sources and produce comprehensive reports for better decision-making. And for doing so, the inclusion of smart reporting in their business management system is crucial.
It will limit time consumption in performing effective analysis and enhance the workflow for better policy management and administration, boosting the overall growth of the sector. Hence, many insurers have already started incorporating smart reporting systems into their existent digital infrastructure. Based on this digital solution adoption, studies say that the insurance industry of India is expected to increase in the range of 5.3% of CAGR between 2019-2023. So, here is why smart reporting has become so vital for improved insurance business management.
Better marketing channel visibility
Before you market your insurance products for the first time, you need to have in-depth knowledge about your marketing channels.
Most insurance businesses spend a lot of resources in gaining leads through numerous marketing strategies. So, you must keep track of these marketing footsteps to know how your campaigns are performing.
With smart reporting, marketing tracking becomes easier as it allows businesses generate reports using advanced technologies like AI and ML. These synoptic and structured formats of automated reports make them easily accessible to machine learning and data mining algorithms to obtain important data insights, which, in turn, can help in further decision-making on whether your marketing campaigns are working efficiently or not.
Effective risk management and underwriting
Earlier, insurance carriers maintained a lengthy handwritten logbook to keep a manual record of all their customers' data to make proper underwriting and risk management decisions related to their policies. But with digitalization, insurers have become more innovative and started implementing business management systems supported with smart reporting tools.
Smart reporting platforms come with a robust framework operating on a SQL or Oracle database server for easy collection, organization, and usage of customer data. In addition, these tools offer effective data visualization and predictive models to generate detailed custom or HTML canned reports. Based on these reports, you can quickly analyze the risks and set a fair premium for a policy. Thus, the adoption of smart reporting also helps leverage the end-customer experience.
Seamless claims management
Claim handling is vital for any insurance business. Insurers need to improve their claim management process for improved customer experience and better workflow management. So, many of them have incorporated AI and data analytics in their system architecture to automatically extract claim-related data of policyholders, detect dubious claims, and initiate claim settlements.
But to keep a record of the number of rejected fraudulent claims, initiated claims, and claim status, it is essential to integrate a smart reporting system that can showcase accurate data in charted or tabular formats for effective interpretation. These reports also display detailed fraud claim patterns, which the claims team can refer to for investigating the matter while following up with customers.
Thus, to add better speed and agility to work management and reduce human errors, smart reporting can help comprehensively. It offers insurers accurate reports that they require to make fast and confident claim processing with accurate choice making.
Access to in-depth customer insights
Having detailed customer insights can help you improve your service offerings and expand your business in a much optimal way. In addition, understanding how customers make their decisions can aid you to work better on your lead generation and conversion strategies.
A self-service data delivery smart reporting platform can allow the sales team to extract and interpret vital real-life data such as consumers' personal data, claims data, organizational data, sales data, etc., using rich sources. It helps them generate and analyze customers' persona for better decision-making. Thus, these in-depth customer insights can help you personalize your insurance products as per their needs, reaching out to a large audience base.
Enhanced accuracy in financial projection and reporting
A smart reporting software can help any insurance company gather, analyze, and generate reports in real-time. It facilitates automation in report generation and distribution to initiate a quick and effective workflow in your business.
Being integrated with AI algorithms and predictive analytics techniques, these systems can track current trends and notify decision-makers promptly to make positive decisions about policy premiums, investments, and other aspects of their business.
The inclusion of smart reporting can be highly beneficial for any insurance company that intends to grow towards a better future in a short time. Thus, businesses must integrate smart reporting solutions in their existing system architecture to render utmost accuracy to their business management operations.
Why Smart Reporting is a Great Solution for Effective Insurance Business Management?
By: Eicore Technologies | Tuesday, 28 December 2021
Due to the emergence of the COVID-19 pandemic, it has become imperative to reimagine the customer experience while preparing for a truly ‘contactless’ world. And this is something that will continue to remain even after the pandemic.
However, the current COVID-19 situation is undeniably responsible for making the insurance sector introspect and plan for a future-proof business that would firmly stand against any unexpected system disruptions. Thus, almost all insurers underwent massive end-to-end digitalization to recreate their business models and product offerings while facilitating contactless customer experiences.
So, let’s see how hi-tech contactless systems will contribute to customer experience in the insurance sector.
Integration of advanced technologies in existing insurance infrastructure
When a purpose-driven approach is used to cater to customers' evolving expectations, it induces customer loyalty. And for doing so, you must opt for digital solutions and make the best use of cloud-stored customer data to enhance such operational experiences.
The implementation of Artificial Intelligence and Machine Learning has already gained worldwide popularity, and the insurance industry is not of any exception. Hence, the integration of AI and ML algorithms into the existing infrastructures of insurers helps them to a great extent. The way these systems process a pool of data and learn on their own to make effective decisions is a key to establishing personalized contactless experiences.
Moreover, insurers can deploy Cloud for storing customer-generated data, which AI-driven systems can easily collect for better data processing. Also, as data remains well-organized in Cloud, there's no need for intensive paperwork or physical labour. Instead, insurers can access the data online with a few clicks and facilitate a contactless customer experience based on their data insights.
Thus, with more customers looking for a personalized experience before and after buying insurance, insurers have integrated AI and ML algorithms and deployed cloud servers in their existing systems to meet those demands.
Adoption of self-service claims portal for hassle-free claims processing
By following the traditional way of inspection, even the simplest claims will take at least 5 working days. Soon after a claim settlement request is raised by a policyholder to the insurer, a surveyor will be assigned to visit the site, assess the extent of loss or damage caused, process all claim-related documents, and based on that, sanction the claim.
It is evident that the entire procedure of manual claims processing is time-consuming and error-prone. So, this is where a self-service claims portal can come of great help. It facilitates customer registration, inspection, and settlement of their insurance claims in a short time.
Using the technology of Computer Vision and Cloud, policyholders themselves can capture the damage with their smartphone’s camera and upload it to the system for better analysis and effective decision-making. After that, the AI-integrated systems will automatically review the claim request, analyze the images by collecting them from the Cloud, and then verify the policy details.
If the claim request passes the AI algorithm, the system will send wire instructions to the bank to facilitate claim disbursement. Thus, self-service portals can effortlessly perform risk assessment, automate claims, and prevent dubious claims without manual intervention or intense labour. This, in turn, reduces the turnaround time for claim settlement and eliminates human-made errors. Also, as per reports, automation of processes can reduce the expense of a claims journey by 30% in the short term, leveraging the growth of insurance companies and facilitating enhanced digital customer experiences.
Inclusion of responsive mobile applications and chatbots
With the emergence of advanced technologies and their adoption by almost all sectors, customers have become tech-savvy and want a contactless experience. Thus, the new-generation techie consumers do not prefer the traditional manual insurance selling method. Also, due to the COVID-19 pandemic, people who previously prioritized face-to-face communication while purchasing an insurance policy is now reluctant to meet people.
In such a scenario, chatbots and mobile apps became predominant channels for insurance services. Whether consumers need consultation on the right insurance policy or want to file claims, all can be done only through a few clicks.
Nowadays, most insurance companies have their own enterprise mobile apps, which policyholders can easily access to perform all insurance-related tasks right at their home’s comfort. For instance, they can pay their policy premiums, renew their policies, or ask about their insurance on these apps. Besides, there are also vernacular or multilingual chatbots that can handle all customer queries related to pre and post insurance sales.
Thus, virtual bots and responsive mobile apps help customers take more uniform decisions without meeting insurers personally while executing a contactless mode of communication. It allows customers to feel empowered and makes them stay virtually connected to the brand, leading to a seamless customer experience.
To finally conclude, the thing that only counts in the entire journey is how experiences connect with customers. A purpose-oriented engagement, personalized choices, and a reimagined journey will create a huge difference. Thus, an action-based strategy coupled with advanced technologies and optimum digital solutions will drive purpose-driven outcomes, adding value to contactless customer experiences.
How to Facilitate Contactless Customer Experiences in the Insurance Industry?
By: Eicore Technologies | Tuesday, 28 December 2021
COVID-19 has created a massive change in the broad spectrum of multi-faceted business industries. And the insurance sector is no exception. While the country faced an unprecedented lockdown period for months, insurance companies have found some highly effective ways to cope with the situation and keep up with their customer dealings.
The COVID-19-affected system has accelerated the growth of massive digital transformation in the insurance industry, which will more likely continue to serve even after the pandemic era. So, let’s take a glance into the wide range of digital transformations that the insurance industry witnessed due to COVID-19.
Making a huge move with the digitized approach
It didn't take much longer for the insurance sector to align with a digitized ecosystem. Most insurance companies are moving their technology architecture to a platform-based approach. To cope with the rapidly changing tech-based environment, insurers need to incorporate a technology architecture in their infrastructure that is flexible enough to evolve and adapt.
Hence, some insurance industry leaders are shifting towards a platform-type architecture to implement newer tools and technologies for better online assistance to consumers. Moreover, to aid the process, IRDAI digitized and standardized many insurance products, which enabled insurers to launch policies having uniform features at affordable pricing to render a seamless digital experience to customers.
Besides, this digitized approach will also help companies reduce potential risks and make modular decisions, further moving towards a better objective of building a robust and agile environment.
Improving digital interaction capabilities
Even though India possesses a low financial literacy compared to other markets, the importance of face-to-face interaction between clients and insurers is of paramount importance. But COVID-19 has created a boundary line in this mode of interaction.
Thus, the pandemic has winded up the need to shift to digital interaction capability, which is now revolutionizing the Indian insurance sector. As a result, many insurance companies have adopted digitized self-service portals that can be accessed through web browsers or mobile applications.
The interaction efforts made through call centre operations and online messenger apps also highlight this robust transformation phase. Also, AI or ML implementation in chatbots help insurers to deal better with their consumers, leveraging user satisfaction.
Implementing collaboration tools for a better internal approach
The pandemic has made the insurance sector enable its employees to work remotely. Hence, a quick shift to the digital-only approach has become imperative. And this paved the way for the widespread adoption of digital collaboration tools to enhance internal operations and organizational efficiency.
Using the web or cloud-based software, employees and agents of an insurance company can work together with a shared objective. These collaboration tools let them work in a virtual environment with easy information sharing and audio or video conferencing. Thus, it has helped insurance companies to maintain their business workflow even in this pandemic situation and offer consistent services to their customers without any delay or hindrance.
Enhancing scalability through AI-driven systems
The implementation of AI in various areas of the insurance sector like claim settlement, customer interaction, and policy issuance has rendered improved scalability to both front-end and back-end operations.
With the help of AI-driven chatbots on the front end of the website or app, insurers can offer seamless services anywhere and anytime to their customers. Also, they can easily collect valuable data from customers through these chatbots to deliver better outcomes. Thus, it reduces manual effort and improves accuracy in results.
Now, on the back-end, this AI-based data collection method enables insurers to make more accurate decisions on the latest policy-making, underwriting, and new product offerings.
The insurance industry of India is ever-growing. While other industries are still trying to cope up with the after-effects of the pandemic, the insurance sector has made its shift to digitalization quite smoothly. By acknowledging the importance of advanced technologies, insurers have improved their core models, which can quickly adapt to the trending transformation and enhance agility in terms of product marketing and customer service.
How COVID-19 Brought Forth Large-Scale Digital Transformation in the Insurance Industry?
By: Eicore Technologies | Thursday, 25 November 2021
With the rapid transformation into a digital industry, the insurance sector unleashes new and innovative advanced arenas. The COVID-19 pandemic has given this industry enough reasons to shift to a fast-moving digital world. Since then, it has been growing and is expected to touch the milestone of digitalisation in the coming future. Adopting advanced technologies in the insurance industry is considered an integral part of developing various products and formulating a progressive business model.
Also, it creates numerous opportunities for the insurance industry to extend across the boundaries of traditional notions. Well, this growth is visible in the Indian Insurance market to some extent. According to reports, India is the second-largest market in Asia-Pacific, which accounts for 35% of the US$3.66 billion insure-tech-oriented venture investments made in the country.
So, here are some technologies that are more likely to pave a future-proof path for the insurance industry in the coming days.
Adoption of future-proof tech-oriented business models
The rise of technology highly influences the insurance industry to look to a future that can help insurers gain unparalleled advantages. So, to stay in the competition, insurance companies need to make themselves future-proof. And for doing so, the integration of advanced high-tech business models is imperative.
Two remarkable technology trends are more likely to hit the insurance industry in the coming years - Cognitive Computation and System Decentralisation. Insurers will utilise these technologies as proprietary tools to bring about positive changes to the industry and make its future sounder and more progressive.
Easy insurance issuance with Artificial Intelligence
AI has already marked its advent in the world of insurance. The rise of chatbots and quick claim management is proof of AI’s fast-pacing growth in this sector. However, in the future, it will continue to create more impactful and positive changes.
AI algorithms are imperative in creating a risk profile. And this can significantly minimise the cycle time for the completion of the purchase of an insurance policy. Thus, a growing wave of mass-market instant issuance of insurance products is about to hit the industry. AI-driven systems allow for life underwriting in a much granular manner. Also, it aims to enable life carriers to identify risks effortlessly.
Introduction of robotics to the field of insurance
The technology of robotics has lately witnessed a noteworthy impact in the world of digitalisation. It is expected that this innovation will continue to create changes in human interaction with insurance companies.
Besides, robots will streamline the entire workflow of insurers and minimise the amount of time spent on repetitive manual processes. From the extraction of essential data to claim verification, all intensive tasks can be automated and add pace to work. Also, the implementation of robots will reduce the possible chances of human errors.
The advent of automated drones for the insurance sector
Drones are already taking up a place in the insurance industry, and they will continue to change the outlook and methodology of insurance companies in the coming future. Programmable autonomous drones will be more actionable for agricultural insurance products.
These drones will be active participants in risk assessment. Also, they will help insurers to manage claim criteria assessments.
Access to a vast pool of data from connected devices
Devices with sensors have been present in the industry for quite a few years. However, it will become more prominent in the coming years and see a significant increase in the number of connected user devices. High-tech connected devices like smart cars, virtual home assistants, and fitness trackers will keep emerging and increasing in number.
So, experts estimate that by 2024-2026, there will be more than trillions of connected devices that will result in the collection of massive amounts of new data, which, in turn, will allow insurers to understand their consumers better. And based on this pool of data, every insurance company will strive to create newer product categories with personalised features, customised pricing, and enhanced speedy service delivery.
Thus, like any other industry, the world of insurance is also catching up to the rapid speed of digitalisation. The advent of AI/ML, cognitive computation, and automation technologies are burning proof that this industry is flexibly accepting all the positives. Hence, time is not so far when the issuance or claim settlement of insurance policies will become a one-click task.
Future Inclusions of Insurance Technology
By: Eicore Technologies | Thursday, 25 November 2021
The insurance industry seems to be highly interested in implementing digital transformation in its various areas to leverage its productivity and overall growth. Hence, the aspects of insurance issuance and claim settlement witness a wide range of technological advancements that are bound to create positive changes in end-user experience. Life insurance underwriting is one such area that needs to be addressed now to create a beneficial future.
Underwriting typically refers to the process of assessing whether you are eligible for life insurance coverage or not and, if approved, what premium amount you will need to pay to the insurer. Thus, life underwriting is a highly crucial yet time-taking process when done manually. Currently, 24 life insurance companies in India face a huge challenge in managing this time-consuming task of life underwriting.
However, the adoption of advanced technologies in the insurance industry is about to improve this situation to a large extent. So, here is how life insurance underwriting works as the torchbearer of transformation in insurance digitalization.
What is underwriting for life insurance?
Before looking at how the digital transformation occurs, it is better to have a quick idea about underwriting.
Life insurance underwriting is referred to as an evaluation of a customer’s medical and health history, lifestyle, hobbies, occupation, financial status, etc., which can improve their life expectancy. Based on these risks, insurers determine the optimum premiums for your life insurance.
There are usually two routes that comprise life insurance underwriting. One is traditional underwriting, and the other one is accelerated underwriting. Both these routes will need you to provide your personal details related to your financial and medical history. Also, these paths will make the insurer collect your prescription history and your motor vehicle report.
While the traditional route includes medical exams, the accelerated one might skip it using advanced techniques and tools to predict relative mortality rate. So, it is the latter route in which digitalization comes into the roleplay.
How is the path of underwriting changing?
The way life insurers perform the underwriting process is changing rapidly with the implementation of advanced technologies. So, have a look at how digital transformation is bringing about this influential change.
AI-driven systems can easily update analysis in automatic underwriting as soon as the new data is available. Offering better data insights can facilitate optimum risk management and create more accurate recommendations for effective decision-making.
The application of AI systems in disease management and assessment of insurability of people after impairment can minimize time consumption in suitable product recommendations to customers.
Implementation of therapeutic technologies
Apart from the traditional or full route of underwriting, the accelerated route witnesses more improvements with streamlined technologies. There is a vast scope of growth in therapeutic and prognostics technologies in the insurance sector.
Massive medical improvements are occurring today with effective monitoring apps or invasive/non-invasive sensors, which help improve human life expectancy. If any policyholder consistently uses such apps to enhance their therapy compliance for various diseases, it will facilitate a quick underwriting process, adding value to the entire insurance.
Dependency on data analytics
The advancement in insurance technologies includes effective data analysis. The implementation of various data analytics tools can enable quick real-time adaptation of the underwriting guidelines, enhancing the claims experience of end-users.
Besides, the inclusion of predictive analytics and self-learning algorithms for more robust and accurate data analysis will be built upon such valuable data, comprehensively improving the entire sector.
The world of insurance is not in a mood to set back from time-to-time improvements. And the digital transformation of the underwriting process is a burning proof of this fact. The gradual implementation of digitization in life insurance underwriting will set a new trend, powerfully creating a robust future for the insurance sector.
Life Underwriting: A Leader in the Wave of Insurance Transformation
By: Eicore Technologies | Tuesday, 09 November 2021
With the changing scenario in every industry, the urge to embrace speed and accuracy in task completion has become common among all. And the insurance industry is not out of the radar. The rapid growth in insurance policy administration from automatic execution of processes to machine-based management is proof that the sector is adopting massive technological advancements.
Well, in this journey, the insurance industry comes across some common terminologies such as digitisation, digitalisation, and digital transformation, which marks the type of technological advancement adopted. But an indistinct idea regarding these terms leads to some common confusion. However, there is no point in embracing confusion while the differences are pretty clear. So, here is what you need to know about digitisation, digitalisation, and digital transformation in the insurance sector.
Digitisation of the insurance industry
The term digitisation refers to the creation of a digital representation of physical attributes or objects.
The process of digitisation makes data more consumable. It is one of the most traditional ways of data transformation that the insurance sector has adopted since the time most insurance companies facilitated online policy purchases.
For example, insurance companies scan the relevant documents of each policyholder to turn them into a digital form and index them to store in enterprise-level DMS. These cloud-stored digitised documents can be easily accessed during the time of policy renewal or claim processing.
As per reports, due to digitisation, the insurance sector of India grew up to 17% in April-May of 2021.
Digitalisation of the insurance industry
The digitalisation of the insurance sector has been quite a popular practice for over some years now. The term digitisation refers to improving the existing insurance processes without completely transforming them but by enhancing digital technologies and digitised data.
Digitalisation renders more accuracy to the sector. Nowadays, insurance companies have embraced digitalisation to meet their changing customer requirements and sync their business model with the changing trends.
As per various studies and surveys, insurance companies are innovating their services across the globe through digitalisation. They have deployed new-age technologies like AI, IoT, and Blockchain to improve their product marketing and service offerings.
For instance, many insurance companies have adopted OCR systems to enable automated claims processing with enhanced accuracy. Thus, it helps eliminate manual intervention and decreases the chances of error occurrence, adding pace to the workflow.
Digitalization also highlights the use of drones in agricultural insurance to gather farm yield data for easy policy issuance or assess the damage caused for hassle-free claim processing, which further helps in product development and underwriting. At the same time, digitalisation of the insurance sector renders the seamless benefit of claim prevention and enhanced customer support to maximise user experience.
Digital transformation in the insurance industry
Every industry strives to achieve massive success and growth. And the insurance sector is not an exception to it. Thus, most insurance companies are currently undertaking a massive digital transformation journey to improve their work efficiency, manage potential risks, and leverage their presence in the industry.
Well, digital transformation refers to a business transformation that is enabled by the digitisation of processes, models, and products. The high-end digital technologies work as the building blocks for digital transformation.
Advanced technologies like AI and ML enables seamless transformation to the lookout of the insurance industry. Insurers use AI to personalise and customise user experiences. It helps them access many accurate reports stored in DMS time-efficiently.
Also, using predictive analytics, insurers can quickly meet the high-speed demands of modern customers in issue resolving, claims processing, etc. This particular digital inclusion in the insurance sector helps in easy risk prediction, fraud claim detection, and policy management, which renders ease to the workflow and operation of insurance companies.
Other technology-driven systems like chatbots enable insurers to interact seamlessly with their consumers, which helps them to keep up with the competitive marketplace.
Thus, due to these 3 technological advancements, the insurance industry has witnessed massive improvement and innovation for the past few years. The multiple challenges present in this sector, like delay in workflow, lack of documentation, inaccuracy in manually collected data, have urged insurers to adopt digital systems.
Even though digitisation, digitalisation, and digital transformation are interrelated, it is better to have a clear idea about them to implement the right one at the right time in your business and leverage growth.
A Comprehensive Guide on Digitization, Digitalization & Digital Transformation in the Insurance Sector
An uptick has been lately observed in the insurance sector. Whether policy issuing through digital processes or improving customer interaction through AI chatbots, substantial technological advancements have taken place in the insurance industry. And the domain of claim processing does not fall behind. The efforts made in the digital transformation of the claim processing system sums up to bring about some significant changes in the sector.
Digitally advanced claim systems are becoming popular rapidly, capable of addressing customers' pain points and giving them the necessary ease with their claim settlements. As per reports, Indian insurance companies have recently made a huge shift to the digitalization of claim processing, from where at least 20% of claims have got purely settled digitally.
So, today, in this article, we will discuss how the insurance claims process went through massive technological advancement, changing the face of the insurance industry.
The process of claim automation comes with its unique benefit of reducing the expense of loss adjustment. Companies that automate their claim processes can easily leverage the number of claims handled without increasing the headcounts.
This digitized approach helps insurance companies to focus more on complex claim processing to facilitate efficient claim disbursement. At the same time, the automation swiftly handles simple claims too. As a result, it helps insurers to do away with the expenses of handling smaller claim amounts.
Moreover, from customers' perspectives, claim process automation helps them get prompt and easy claim settlements. Customers with complex claims get better availability of customer support, which ultimately helps them achieve the best user experience.
Integration of AI-powered decision engines in the claim processing system
Tackling claim fraud is a cumbersome task for insurance companies. It is pretty challenging to detect claim frauds manually as it takes a lot of time and involvement, further affecting the productivity of the insurer.
But the advanced claim processing system facilitating automation of processes with machine learning and AI algorithms changes the entire scenario. Such systems use predictive analysis to identify dubious claims and get them reported. The more claims data these systems analyze, the more effective they become in detecting sceptical patterns and key characteristics suggestive of fraud. Then, based on the reports generated by these systems, special investigative teams or the claims staff look into the matter while following up with the customer.
From verifying documents and claim proofs to managing complete paperwork for initiating claim processing, the entire process suffers through unnecessary delays. Humans are not machines. They need to go through every single detail before sanctioning the request for claim settlements. But this can disrupt the workflow of the entire system.
With rapid changes in various scenarios, customers’ interest in buying insurance policies has increased. Especially the COVID-19 pandemic situation has given a huge escalation in the metrics. Thus, insurance companies cannot stick to only a few claim processes for a long time. So, the inclusion of AI systems in claim processes gives workers a chance to enhance their speed. In addition, it helps to maintain a steady and quick workflow in the entire method of claim sanctioning.
Customer satisfaction with lesser human intervention
Humans tend to make mistakes when it comes to handling the bulk processing of insurance claims. But, in the course, insurance companies pay a substantial cost for the mistakes done on their part. So, the digital transformation of claim processes rightly addresses this pain point and enables insurers to process everything seamlessly with automated systems.
It reduces the delay in claim processing, which works as a factor of satisfaction for customers needing quick settlements.
The changing scenario of the insurance sector in India is proof that companies are bent upon making some positive technological advancements in the claim processing system. Thus, the digital transformation with advanced claim systems helps insurers embrace a steady flow in the entire process and improve customer experience and satisfaction.
Transformation of Insurance Claim Processes Through Advanced Claim Systems
By: Eicore Technologies | Tuesday, 19 October 2021
With the evolving innovation and rapid inclusion of digital transformation in the insurance industry, the sector is coming up with significant opportunities for its growth. The future of the insurance industry is quite promising, with many alterations in its regulatory framework.
Digitalization is stepping forward to make progressive changes in the way that the industry is conducting its business while increasing engagement with customers. The market size of the insurance sector is anticipated to reach near US$ 280 billion by 2020. The prediction also said that the market size of the life insurance industry, in particular, would increase by 14-15% yearly for the next 5 years.
So, how the insurance industry is looking at its future with digital inclusion? Well, let’s have a look.
It is getting more innovative than before
The insurance industry has seen a long and slow embracing of innovation since its inception. However, to cope up with today's digital economy, the need for innovation is surging high. And the good news is that the insurance industry is performing well in accepting these virtual innovations.
A boost in some digital-first insurers, creative startups, and tech giants has facilitated the shifting of the industry from its conservative path. And now, it is speedily traversing forward with the innovation-based digital culture.
The implementation of digital transformation in the insurance sector commences with a much newer outlook from an older system. With fast claiming, quality risk assessment, and hiked policy sales, the industry strives to witness a bright digital future.
The rising “headless tech”
Headless tech is an innovative idea that tends to work with effective and growth-oriented prospects. Headless tech refers to the concept that both the customer-facing and business-facing interfaces need to communicate along with the same information.
It must be optimized in a much unique way for handling respective tasks. And for doing so, the front-end must be designed for consumer presentation, combined with a top-notch back-end design for data functionality.
This growing trend of headless tech performs well with no-code tools and aids the optimization of the interfaces. In the coming future, it can be expected to see insurers implement separate customer-facing front-end and internal back-end processes to ensure a much steady data flow.
Growth of the hybrid cloud architecture
The hybrid cloud technologies prove to be a more innovative inclusion for bringing about digital transformation in the insurance world. It has nearly become the keystone of digitization for all industries and sectors.
What is more progressive about this technology is that the hybrid cloud market is expected to reach $128.01 billion by 2025, which had been only $45.7 billion in 2019. Several organizations, including insurance companies, tend to adopt hybrid cloud structures rapidly as they aim to reap the benefits of both individual and public clouds.
This emerging technology allows companies to switch between the cloud provider's toolkit and various other internal tools, adding more speed and flexibility in data operations.
A changing future with the power of InsurTech joint ventures
Forming partnerships in the insurance world is growing in a much rapid way. Collaborations between different tech and insurance companies are increasing with the changing trend to obtain a much winning proposition.
By tackling their legacy data and strengthening customer relationships, insurers can create more opportunities to establish many new revenue sources. InsurTechs tend to offer the sector every technological support necessary for extracting data insights from the existing customer relationships and facilitate more customization in the services with data-driven insurance policies.
Also, it is one of the most remarkable ways to maintain a much competitive edge in the growing insurance market.
Progressive growth in the insurance industry with high-end technologies is quite visible. Since the last two years, the inclusion and expansion of digitalization in the sector added more pace to its growth, delivering a more user-oriented service. And it is expected that with the adoption of more digital solutions, the insurance industry will develop a brighter future ahead.
How is the Insurance Industry Heading Towards a Bright Future with Digital Transformation?
By: Eicore Technologies | Tuesday, 19 October 2021
COVID-19 pandemic has brought forth a huge set of challenges in front of all business sectors. But with the implementation of advanced technologies and top-notch strategies, businesses found effective ways to overcome the obstacles and stand out. Well, the Indian Insurtechs are no exceptions to it.
India's insurance companies have redefined the sector's growth, especially during the pandemic, by adopting progressive technologies. To comply with COVID-19 safety guidelines and deal with the challenges of social distancing, maintenance of lockdown, etc., Indian Insurtechs have incorporated digital contactless solutions.
The pandemic initially created a huge challenge in customer interactions. As per COVID-19 protocols, visiting the physical offices of insurance companies for minute reasons is not allowed. These restrictions reiterate the concern of the government regarding COVID-19 transmission.
But for insurance companies, customer interaction is a crucial area. Thanks to digitisation! Insurtechs in India successfully made a digital shift to chatbots to serve users' requests through smartphone apps. Facilitating auto-generated answers to FAQs through chatbots makes it easier for policyholders to access vital information related to their policies quickly.
Thus, with the adoption of AI-enabled chatbots, Insurtechs are bridging gaps and delivering more personalised services to consumers. As per reports, SME-based chatbots have been utilised in 4000 use cases in the insurance industry.
Use of AI and Machine Learning in claim processing
This pandemic has made more people avail of new health and COVID insurance policies. Also, the deteriorating healthcare scenario of the country has made many consumers opt for insurance claims. Hence, the workload on insurance companies has grown drastically. Additionally, due to the restrictions on working hours because of repeated lockdown in the country, it is tough to get manual workforce that can speed up all claim-related tasks.
However, the insurance sector is getting enriched with advanced technological incorporations. Thus, addressing such problems has become easier. With AI and Machine Learning, claim processing tasks can be automated, improving speed and accuracy.
AI and ML algorithms can easily access digital insurance files of each policyholder uploaded on the Cloud, verify their policy and claim details, check for fraud claims, and, based on the analysis, process the payments of respective claims. Thus, it minimises errors due to manual interference and reduces downtime and expense.
Improvisation with drones
Drone services are not only limited to site inspection or eCommerce delivery tasks. It is now also leveraging the insurance sector. How? Insurtechs of India is planning to use unmanned drones as efficient tools for improvisation in farmers' insurance.
These UAV devices will be used for collecting sufficient data for risk evaluation before issuing a farmer’s insurance policy. At the same time, it can aid in efficient preventive maintenance. Also, drones can be used to assess the damage or production loss caused due to disasters in fields.
Thus, the utilisation of drones has eliminated insurers' hurdle to make physical visits to farms, especially during this pandemic situation, where mobility across a large area is highly restricted. Also, drones are expected to give the future of farmers' insurance a bright prospect and ease out their claim settlements with high accuracy and pace.
Implementation of telematics
Telematics is another unique digitised method to fuel growth in the insurance industry, particularly during this pandemic. Due to lockdown imposition, it is pretty difficult to manually visit and inspect every safety feature of a vehicle before insuring its auto policy. Thus, to do away with this issue, Indian Insurtechs aims to leverage motor insurance policies with telematics while offering an enhanced end-user experience.
To mark the growth of digitisation in vehicle insurance, cars will now be equipped with monitoring devices to measure the risk factors related to driving it. Parameters like distance traversed, location, speed and frequency of driving the car, and all other driving habits of the driver will be assessed automatically through telematics. And based on the data obtained, your car insurance's policy premium will be decided.
A safe driver would have to pay a lesser premium, while a rash driver would need to pay higher premiums, as the latter has higher chances of facing accidents and opting for a claim. Thus, using telematics, Insurtechs would be able to offer superb personalised experiences to consumers.
Though the pandemic has created a huge drawback in the global insurance market, its impact has made Insurtechs of India undergo massive digital transformation and witness a significant gain with better market penetration. The inclusion of new-age technologies and the implementation of tech-based improvements to policy administration, claim processing, and customer dealing has seen higher growth.
How are Insurtechs Combating Pandemic-Led Challenges?
The new-age insurance sector is highly focused on bringing seamless technological transformation to facilitate ease of management. Moreover, since the whole world is inclining towards active digitalisation, it has become crucial for insurance companies to step forward while aligning with the emerging transforming trends.
Now, compared to all areas of the insurance industry, claim management is of utmost importance for all insurers. Since claims cost about 80% of the premium income, insurance companies need to roll up their sleeves to delve into proper claim management to reduce loss adjustment expenses and enhance user experience. This is where newer digital technologies like artificial intelligence can cause a huge transformation in claim management. Are you wondering how? Well, here is what you need to know about it.
Adds better flow to the claim management outcome
Digitalisation is getting fuelled by the integration of artificial intelligence in insurance claim management. AI has an impeccable potential of allowing insurers to use historical data and algorithms to obtain accurate future predictions of the claim benefit.
AI integrates deep learning and machine learning algorithms to make insurance companies easily analyse the patterns and anomalies in claim processing, which, in turn, aids their decision-making process. Moreover, due to the implementation of AI in the insurance sector, insurers can visualise customer interaction patterns related to claims and improve their service accordingly to enhance user experience.
Delivers better interaction capabilities
Nowadays, customers are very particular about the ease of their interaction with insurance companies. Hence, they look for more personalised assistance than a standardised one, especially during claim processing. Nevertheless, it is pretty challenging for humans to deal with personalised services for every individual customer. So, this is where AI comes into the roleplay.
With AI integrated chatbots, insurers get the benefit of seamless interaction with customers for automatic acceptance of claims. Also, through these systems, insurance companies can effortlessly ask a few queries about the existing claims of the customers in a FAQ style. Thus, in this way, AI systems can reduce the claim management workload of insurers, improving their accuracy and efficiency in dealing with customers for quick claim processing.
Helps to detect dubious claims
With the utilisation of AI, insurance firms can seamlessly work on detecting dubious claims. While insurers need to sort out claims in the least possible time, it is also crucial to remove dubious claims. In most cases, a cumbersome manual verification of claim documents and other related information is necessary for claim sanction. But the process hikes the operational cost of insurance firms and increase the overall claim processing time.
So, with AI, the end-to-end claim process gets a better pace and high accuracy. Starting from data extraction, settlement initiation to claim approval, and payment and recovery tracking, AI-based systems do them all. As a result, it leverages claim processing speed and serves high accuracy for the entire operation.
Offers the advantage of data analytics
Most insurance companies deal with a large volume of data, which needs to be continuously tracked and analysed to deliver better outcomes. Thus, insurers must have robust and efficient IT and analytics capabilities to extract the necessary data quickly and facilitate improved claim processing experience to customers. But human involvement may delay the process and also cause errors in the results.
So, with the inclusion of AI and automation, human intervention can be significantly reduced. In addition, it facilitates cutting-edge data analytics, helping in better decision-making and delivering top-notch results. At the same time, data analytics-based AI systems can empower insurers to automatically detect claim frauds in real-time, leveraging the growth of the insurance sector.
Similar to many other industries, the insurance sector is also working strategically to integrate AI into its management system. This adoption of AI systems highly benefits claim management processes and help in improving the accuracy of insurance companies in performing related tasks and delivering enhanced user experience.
Role of AI in Insurance Claims Transformation
By: Eicore Technologies | Thursday, 16 September 2021
Insurance business management can become difficult if it lacks proper workflow. However, insurance companies that scale their workflow appropriately can process plenty of operations and claim-related tasks effectively. It helps offer an excellent experience to the customers and ultimately improves your business's bottom line.
However, it can be tricky enough to implement workflow if you do not follow the correct process. So, here is how you can apply workflows in your insurance company for effective business management.
Streamline insurance underwriting with AI
Underwriting of policies falls under one of those activities that you need to perform repetitively. Whether it is the quotation or renewal of policies, human intervention can make these tasks highly time-consuming and frustrating. Thus, to improve the overall management of underwriting processes, the inclusion of AI is beneficial.
Automation through AI-assisted rules can escalate the speed of the entire process. In addition, these rules also offer you better guidance in your decision-making, which, in turn, can fortify your underwriting workflow. Hence, integrating AI into your insurance business workflow system is a need of the hour.
Automation will improve customer onboarding
Customer onboarding plays an integral role in improving the entire workflow related to customer satisfaction. However, customer onboarding can be a hefty task if your business is working with manual follow-ups and human-managed data re-entry processes. And this can make your business management system prone to high risks of errors.
Thus, adopting a digitised and centralised mode of communication via an automation platform is highly effective to improve your customer onboarding process. By using the automated platform, you can create a streamlined customer journey.
You can easily check on any delays, omissions, or mistakes and get them automatically sorted with the new customers by using quick, bot-driven email follow-ups. It will also tend to reduce human involvement. Thus, human resources can now be used more effectively to perform other critical analytical tasks and nourish the existing faithful customers' relationship with your company.
Incorporation of CRM to enhance end-customer experience
The new age of insurance business management is all about offering a highly scalable user experience. And for doing so, you need to make your services more valuable by taking care of their changing needs. But traditional methods lack potential data insights related to the awareness of customers' needs and requirements.
So, you can enhance your customer experience with the implementation of smarter solutions. Leveraging your CRM software through AI-integrated chatbots can offer you seamless access to render better-personalised experiences to your end customers. Using chatbots can help you interact with every policyholder and customise your services as per their requirements.
Thus, an AI-based CRM tool saves enough time and energy for your employees, allowing them to concentrate on deeper concerns. Also, as per reports, most insurance companies in India spend at least 12% of their IT budget on opting for CRM services.
Improve the workflow with democratised automation
You can opt for democratised automation with the help of an intelligent low code BPM. It will render your business abilities like digitising your daily insurance operations, better visibility of all transactions, and analysing customer trends to design your policy better. Thus, it impressively removes intensive paperwork and automates task management.
The platform facilitates easy and simple deployment of automation technology, enabling even your non-technical staff to access and use it hassle-freely. Besides, democratised automation can also help organise and coordinate your departments with central data collection and communication hubs. Hence, it ultimately aims to improve the entire workflow of your insurance business management in a seamless and scalable manner.
Leveraging the entire workflow system through the integration of digitised processes can be beneficial for your insurance company. It not only offers your business the ultimate necessary speed but also helps you manage all insurance-related tasks swiftly, increasing the efficiency of your services and augmenting the user experience.
Applying Workflows in Insurance Business Management
By: Eicore Technologies | Tuesday, 07 September 2021
Today's digitized world is highly impacted by artificial intelligence. From the insurance sector to other industries, AI is doing wonders in leveraging the path of expansion. And the insurance industry is not out of this league. With time, digitalization and transformation are taking place in a major way.
Thus, the different areas of the insurance industry, such as P&C insurance, health insurance, and others, are seeing rapid growth in its expansion with the help of artificial intelligence. Whether it is improving the way to deal with customers' demands or managing their policies and claims, AI is helping the insurance industry in all aspects.
The adoption of AI has also become much more prominent after the pandemic situation. At least 82% of finance companies in India have adopted AI in their system. Hence, it is evident that the insurance sector in India is working hard on improving its system with effective tech-based solutions. So, here are the advantages that an AI-driven system offers to the insurance industry.
Offers data-driven personalization
One of the primary benefits of AI that is creating significant changes in the insurance industry is the provision for data-driven personalization. For newly started businesses, AI is highly effective as it helps to deliver a personalized experience to the consumers. Thus, it reduces human interaction, which makes the system more time-efficient.
Insurers use AI algorithms and customer-generated data to offer the best-fit policies to potential consumers complying with their unique requirements. Artificial intelligence-operated systems can even suggest coverage levels based on previous customer interactions or their buying behaviour. Besides, with the AI system's ability to identify optimal policy products, an agent no more needs to worry about it. Thus, the implementation of AI in insurance industries not only benefits consumers but also eases out manual labour, leveraging the overall growth of the business.
Standardizes and scales underwriting and risk assessment
The process of underwriting is highly dependent on data management and data analysis, which is a very time-taking process. But with the implementation of AI in the insurance sector, underwriting is being carried out smoothly. With predictive intelligence, AI systems can easily generate accurate pricing results and estimate the associated risks to deliver better suggestions for policy suitability.
These AI-generated automated reports help underwriters analyze the risks better and facilitate quick decision-making. Thus, using AI improves risk selection and scale risk assessment processes to enhance the end-customer experience. It is to be noted here that AI eases many other underwriting processes, but estimating precise pricing results is the most important one.
Makes use of data to improve customer experience
Data is the key to add value to any service. And based on the collected data, AI can be highly beneficial for insurers to prevent lapses with their current consumers. For doing so, AI keeps gathering data about the customers from various sources. It tends to process bulk data collected by the insurers as well as the data outside of their existing system.
AI-based systems strive to accumulate data from customers' purchase history, social media handles, demographics, environmental factors, and many other sources. Then, using this data, AI algorithms tend to analyze which customers currently need the insurer's attention and set re-engagement campaigns for that particular consumer to establish communication with them. And all these processes ultimately help in boosting customer experience.
Adds value to marketing
AI can also help in improving the marketing strategies of the insurance sector. To cope up with the competitive environment, insurers need to develop newer products from time to time. But the efforts would be of no use if they fail to market them appropriately.
Thus, AI can be used to deliver important marketing data, which insurers can utilize to develop profiles for their customer groups and build effective marketing strategies directing them. Moreover, AI systems also help monitor leads through the entire sales funnel to leverage insurance companies' marketing efforts in targeting a large number of potential customers.
The implementation and usage of modern technologies in the insurance sector are highly beneficial for moving forward with the growing trend. AI is one such progressive technology that effectively delivers ultimate digital solutions to empower the Indian insurance industry and help customers trust insurers.
How is AI Driving Positive Changes to the Insurance Industry?
By: Eicore Technologies | Thursday, 26 August 2021
The world is changing rapidly. From payment methods to vehicle booking, the whole world has made a swift switch to digitalization to leverage speed and growth. The quickly evolving technology-based innovations are bringing a massive impact in every domain. With less cost and time, now all sectors can present themselves digitally in front of the world. And the insurance policy administration sector is not an exception to this progressive advancement.
With the growing population and exposure to various risks, the financial backup offered by an insurance plan is of utmost importance. Besides, to cope with the fast-evolving tech-based world, it has become a supreme necessity to go digital for the hassle-free accomplishment of all insurance-related tasks. But why is it so necessary? Well, here, have a look.
Faster access to market for availing of insurance services and products
Building your insurance product does not mark the end of your task. You also need to ensure that the insurance products and services you have developed reach the right audience. The new-age audience and prospects do not have much time to spend on your service. They want quick and reliable results with any policy administration system in insurance.
But if you cannot deliver quick solutions with complete transparency and real-time results, it will be hard for you to survive the competition. Hence, going digital with the inclusion of artificial intelligence, machine learning, smart paperless policy issuing, and quick chatbot-based issue-resolving in your insurance system can close more deals for your company. Also, online mode seems to be highly fruitful to market your products, enhancing the reach to more audiences.
Quick decision-making with predictive analysis
The implementation of predictive analysis can be a highly beneficial technology inclusion for your insurance company. To cope with rapid advancements in the insurance industry and make the most out of time, it is essential to make quick decisions.
However, decisions will not be valuable unless backed by essential data, information credibility, etc. Thus, it is crucial to make digital inclusions like predictive analysis into your insurance system. It will help you make quick decisions and ensure that your verdict has proper valuable backup so that it can add faster growth to your business.
Improved customer experience
Customers these days are pretty smart. They will not get trapped in your sweet words and flamboyant advertising. Instead, they will compare your services with your competitors in the market before making any purchasing decision.
Hence, you need to be smarter and stronger with your insurance strategy so that you can win your customers’ trust. Moreover, to stay connected with your clients in this pandemic situation, when physical contact is strictly prohibited, digital transformation is the only way to safeguard your insurance company.
At the same time, digitalization rightly knows how to enhance the experience of your customers. According to a study of PwC, the number of companies investing in transforming for an omnichannel experience has surged from 20% to 80%. Hence, it is a good enough reason to pay close attention to improving customer experience by going digital.
Easy and hassle-free query resolution
To earn your customers' trust, you need to be very active. Your customer would not like to spare enough time to visit your office to ask simple queries every time. Also, making repeated phone calls to the customer center of an insurance company is getting outdated nowadays.
So, what to do? Digitalization is the apt solution to safeguard your insurance administration systems. Helping your customers with your app-based service and giving them complete access to customer dashboards for easy query resolving can help them have a more credible attitude towards you. At the same time, it lets customers easily track payments, upload documents, pay premiums, and use chatbots to interact with your customer care, which makes the entire process hassle-free.
Thus, to stay upgraded and updated in the field of new-age insurance, there is simply no way other than going digital with your insurance policy management solutions. Especially in the post-pandemic era, it is of utmost importance. While banking, eCommerce shopping, and other sectors are going digital with their services, the insurance industry also needs to adopt online means to stay ahead in this competitive world.
Why is Digital Transformation an Urgent Necessity in the Insurance Sector?
Digital transformation is occurring everywhere, and insurance companies are not at all an exception. According to the 22nd Annual Global CEO Survey, insurance companies are quite responsive to the technological changes in recent years. And this adaption to the changing technological advancements in the current insurance system is inevitable and becoming imperative to help the insurance companies sustain this intense competition.
Hence, most of the insurance companies in India are opting for high-tech, automated insurance administration system software and majorly benefitting people and offering them a top-notch user experience. With such digital solutions, insurers now have more flexibility to help people recover from various catastrophes and prevent their financial loss, which, in turn, adds up to the social value of the insurance market.
Here is how the companies are coping with the changing scenario of the insurance industry with digital transformation.
Digitization has been a saviour in the pandemic
India's insurance policy management systems have taken the right decision to go digital at the absolute right time. To stay away from human contacts and align with WHO's guidelines and protocols, the Indian insurance industry is syncing its entire system in the digitized version. It intends to add more flow to the work chain and help people all around in a well-organized, systematic way.
According to a recent report by Forrester, 50% of insurance consumers prefer digital channels in India. The accommodation of technological changes in the system is now changing customers' patterns and navigating the pandemic-affected world in a much methodical way. Thus, the Indian insurance companies are now relying more on digital channels for onboarding and serving customers during this time.
The utilization of end-to-end paperless robust platforms for onboarding customers is adding more speed to the entire process. During interaction with consumers, a salesperson can quickly enter all the details on a tablet and get the policy issued. Sounds relatively easy, right? Well, indeed, it is simple and effortless!
Cloud and analytics are adding pace to the industry
Since the last financial year, cloud migration commenced its journey in the insurance industry. With its unrestrained storage facilities and auto-update features for easy insurance policy administration, cloud-based platforms have helped several insurance companies operate in a much easier and hassle-free way.
With the implementation of cloud-based platforms, insurance companies can now enable users to undergo much easier steps for checking out their policies. And this results in more power to the company for managing the infrastructure requirements and implementing an easy serverless architecture at more optimized pricing.
Also, insurance companies are thinking of implementing the process in the sales aspect for making the entire system easy to control and as much risk-free as possible.
With the transition to the digitalized version of the insurance management system, the insurance advisory also intends to switch to a virtual platform.
According to the Forrester report, 86% of consumers from metropolitan India believe that it is essential for insurance agents to have preliminary knowledge of using various digital tools and platforms for helping their customers in determining the best policy as per their requirement.
Even the authorities of the leading insurance giants of India have agreed to facilitate proper training to the salesforce for implementing a digitized advisory in the current insurance system. Through video conferencing and tele-calling, the salesforce will get sufficient training on handling high-tech digital solutions and communicate with the customers seamlessly, describing them the entire digital process of onboarding transactions.
Digitized claiming process
Insurers have now got another reason for relief, as the insurance claiming process is also getting digitized. To maintain the no-contact mode of insurance issuance and claim management, insurers are now opting for WhatsApp and chatbots to make the entire process easier.
Consumers can easily send all claim-related documents through WhatsApp, and the rest of the processing will be appropriately taken care of by the insurance companies. Such a digitized version of the insurance claiming process makes things much easier than one can even think of.
As the top insurance companies are going digital, the insurance policy management solutions are getting much easier to access and use for customers. The implementation of the latest advanced technologies in the insurance sector not only makes the entire process easier but also makes it much more convenient and less time-consuming for both customers and companies.
The new changes are pretty visible amongst the reckoned participants in the market, and others are also evolving, adding more flow and pace to the entire system.
How are Insurance Companies Implementing Digital Transformation?
Digital transformation is ruling the insurance industry with its powerful agility and innovative outlook. It is offering the industry more speed and scalability to provide a proper level of customer service. But why is it so crucial? In recent years, many citizens cancelled contracts with different insurance companies due to poor customer experience.
Hence, it is estimated that at least 25% of the insurance industry will be automated in 2025 with AI and machine learning techniques. This modern age's digital insurance solutions transform the insurance industry massively, making this sector much effcient and progressive.
Thus, in this blog, we have highlighted how opting for digital transformation brings about this immense change in the insurance industry. So, without much ado, let's dive into our topic of discussion.
How is the digital transformation making its entry into the world of Insurance?
With the increasing demand of consumers and the competitive landscape's growth, the insurance industry is looking forward to adapting digitalization in their systems. With the implementation of top-notch digital technologies, insurance companies anticipate improving their customer experience and enhance their management effciency.
So, here is how digital insurance solutions are transforming this industry.
Omnichannel is one of the newest inclusions in the digital world, which plays a signifcant role in designing the self-service portal. Both customers and insurers can easily access this online portal to and more information about the policies. It lets you and answers for your queries and conduct business in a much scalable way for managing orders, making transactions, clearing payment of bills, etc.
Whether it is checking the status or submitting more support tickets and downloading resources, this newer solution in the digitized insurance world enhances customer experience to a great extent.
Claiming fraud detection
Insurers are now ending new ways to develop innovative insurance policy management solutions with predictive analytics tools.
They use text analytics for the detection of fraudulent claims, which are based on various business rules. Adapting to such solutions makes the entire industry lucrative.
Risk prediction solution
Another very intuitive insurance solution is risk protection, which works as a valuable solution for the health insurance industry. Insurers can now collect adequate data regarding individuals' historical health records. It helps assess one's point of risk based on biometric data, lab testing, and claims data. It gives the life insurance industry another wind to fly as now they can ask for an acceptable price as per the risk score.
How is this digital transformation benefting the insurance industry?
The adaptation of digitized solutions in the industry not only makes the management of policies easy with top-notch insurance management software but also comes up with a lot of benefits in transforming the insurance industry. There are plenty of examples of how the digital transformation is making much change in society.
A variety of insurance operations are getting streamlined with customer interactions. Through chats, it is easy to make the claiming process get done automatically. Also, brokers can easily aggregate all the information to work faster in a more accurate way. Here are a few benefits it has rendered to the industry.
Render a more personalized experience to your customers
Customers today can get a more customized experience of the insurance policy availing and claim process. Through digital solutions, you can offer your customers the insurance policy that best suits them, unlike the traditional way of policy-making.
Customers can now easily pay bills, view their policies, and claim files using applications. Also, brokers can receive and process all the essential information regarding the insurance policies. Improve effcient policy-making procedure
Being powered by AI and other advanced technologies like machine learning and predictive analytics, the speed of policy-making is getting well-optimized.
Through digital transformation with live chats and digital assistants, it is also helping the insurers improve the customer support process effectively.
The insurance industry has become much more agile now. With a variety of digital solutions facilitated by machine learning, data analytics, blockchain data, and predictive analytics, it has become much more "future-proof," which, in turn, invites more customers to believe in the insurance industry.
Hence, opting for digital solutions will positively impact the insurance industry and render it more streamlined prosperity.
How are Digital Insurance Solutions Transforming the Insurance Industry?
The world is transforming to adopt digitalization everywhere. And as the world is changing, the insurance industry is also not an exception. With the evolving era, the insurance sector is adopting advanced technologies like artificial intelligence, predictive analysis, and IoT, which are bringing about a massive revolution in the whole working process.
Moreover, due to the pandemic, the whole world is switching to virtual methods to avoid physical contact, thereby making the insurance business quite complex. According to surveys, health insurance has a growth of 17% in sales from the first quarter of 2019 to 2020. But in the cases of P&C, travel, and vehicle insurances, sales have fallen drastically.
Thus, the situation comes with plenty of digital transformation challenges for the insurance sectors' CIOs; a few of them are discussed below.
Speedy time-to-market while overpowering the competitors of Insurtech
Insurtech has created a revolution in the insurance business. Taking advantage of all innovative technologies such as data analysis, GPS car tracking, chatbots, etc., Insurtech is going on with its impact. It plays a significant part in shaping the upcoming structure of the insurance industry.
Hence, the biggest challenge that will affect the CIOs is streamlining their years of experience with the new tech-savvy Insurtech solutions. However, Insurtech companies lack years of experience, as they are more inclined to focus on the latest ways of reaching out to customers, policyholders, and partners. Hence, it is vital to align more speed, agility, and skill to market at the right time to catch the flow.
Growing the business through top-notch experiences
When it comes to buying an insurance policy, consumers mainly look for the insurers' experience in the market. According to a survey, 40% of consumers trust to continue their relationship with an insurer, based on the quality of experience delivered for better insurance policy management solutions. Consumers expect the insurers to offer omnichannel solutions using modern and trendy mediums like web portals, mobiles, chatbots, and call centres so that they can enjoy a seamless experience from everywhere.
Though it sounds pretty easy, when it comes to practical application, it is undoubtedly complex. The agents and brokers are one of the vital components of insurance businesses. Also, many agents come with a poor experience, which makes it quite challenging for the CIOs of those insurance companies.
According to a current business study, the insurers' overall independent agent satisfaction is 735 on a point scale of 1000. Hence, it is an area of pain-point for the CIOs to organize and handle agents' performance, along with the growing digital scenario.
Ensuring seamless connectivity in the digital ecosystem
As the competition continues with its growth, many large insurers evolve through their service offerings into an integrated ecosystem. Insurance programs like pay-as-you-go are automatic programs that adjust rates based on the miles you drive. As a result of this, insurers can broaden their market to newer customers. This diversification of products and services is quite progressive in every aspect.
But it has certain complexities. Insurers need to connect with different components in their ecosystem in a quite seamless manner. This is important to ensure the best experience for the new-age customers who look for more fluidity in their expertise. It is a challenging scenario for the CIOs to include all the modern digitized infrastructures and make the entire system go along with it in a short period.
Managing the entire digital workforce
Managing the entire workforce through this digital era comes with multiple challenges. There can be unsecured home networks, which can pose a risk for the organizations. Also, handing over seamless access to all applications and resources to the employees is prone to enhancing the business's complexity.
So, in 2021, most of the CIOs are about to face these priorities.
Keeping the employees working properly
Keeping them safe
Not balancing the IT challenges with other traditional take-ups
Aligning the old infrastructure with the new insurance management system
Removing all the burden from IT teams is probably the most crucial challenge for the insurance industry's CIOs in 2021. As everything is falling upon technology, it is essential to ensure that the support staff is not much overwhelmed in using all constrained resources efficiently to achieve long-term success.
Though the insurance sector's digitalization comes with plenty of prospects and growth, it is imposing some more responsibilities and challenges on the CIOs. To adopt an entirely new workflow is very challenging for traditional insurers. Hence, long-drawn years of experience need to be aligned well with digital evolution to grow the industry better.
Top 4 Digital Transformation Challenges Faced by the CIOs of the Insurance Industry
By: Eicore Technologies | Wednesday, 31 March 2021
Digitized trends in all sectors are an integral part of innovation and progress. The insurance sector is no exception. Getting insurance quotes is all about just one click for both the insured and carriers, making the entire process a very lucrative one to encourage more people to indulge in the industry.?
The upcoming new trends and technologies in the insurance sector are going to introduce more innovation in 2021. Digital insurance offerings are now coming with an omnichannel approach for customer help, bringing about a change and innovation in the entire insurance industry.?
With the changing demand, the insurance sector is also embracing various new trends that drive more progress and add pace to growth. So, do you want to know what the latest trends in the insurance sector are? Well, then check out this article.?
The use of artificial intelligence is prevalent in most sectors. The implementation of artificial intelligence is expanding rapidly. The AI-enabled devices are becoming a part of the insurance industry, which is very progressive.?
According to a survey report of 2017, more than 35.6 million people in the USA have voice-activated AI assistants, and the expected expansion for 2020 was $47 billion. Thus, it is evident that it will influence the growth of AI-driven insurance administration systems software to manage a large number of insurance policies of several insureds.
As insurers are looking to facilitate a more personalized service experience to their customers while purchasing an insurance policy, AI helps them have a unique experience. Implementing AI in managing and organizing a massive amount of customer data to process their insurance policies has eased the entire process, rendering a user-friendly experience.
Predictive Analytics is already a prevalent trend in the insurance business, which will continue throughout 2021. Many insurers use predictive analytics to collect pieces of valuable data to predict the behaviour of a customer.?
To improve its accuracy, more focused and user-centric data will be helpful for progress in the insurance sector. Insurance companies can apply predictive analytics to determine the pricing and risk selection, identify the risks regarding frauds, anticipate more trends, and identify outlier claims, which can upgrade this industry's whole scenario.?
The adoption of predictive analytics modelling tactics has proved to increase revenues and accuracy for many P&C insurers, which can rule the 2021 trends. Moreover, the inclusion of Predictive analytics in life insurance administration solutions can be very progressive,?
Internet of Things (IoT)?
As most consumers share a lot of personal information to save money on their insurance policies, the technology of the Internet of Things can help by automating the process of data sharing. Insurers can easily use the data using IoT devices to incorporate accuracy in determining rates, mitigating risk, and rapidly preventing losses.?
Also, P&C insurers are looking forward to adopting IoT capabilities, which is evident from the forecast that the global IoT insurance market value will be $42.76 billion by 2022. IoT will incorporate other insurance technologies with more accessible data to improve the accuracy of risk assessments, positively impacting the sector.?
Most large to small business sectors, companies, industries, and various other services have switched to using chatbots to make their services more valuable and reliable for their customers. According to an estimation, 95% of all customer interactions will be powered through chatbots by 2025. Hence, this technology will be an integral part of the insurance administration systems to make the consumers have a more seamless experience.?
Through the utilization of AI and machine learning, automated Chatbots can interact with more customers, saving time as well as the cost for the insurance companies. A bot can give a customer complete information about policy application or claiming process, which reserves human interaction for more complex cases.
The insurance sectors are ever-growing and more inclined towards bringing in a better experience for the customers. The latest developments and digital innovations will improve insurance technology in a much progressive way in 2021.?
It will not only help the insurance companies stay ahead of their competitors but also make the entire insurance industry more inclined to deliver innovative experiences.
Digital Trends in the Insurance Industry in 2021
By: Eicore Technologies | Wednesday, 31 March 2021
MUMBAI: In the wake of countrywide lockdowns owing to the coronavirus pandemic, most countries are witnessing mounting pressure on their healthcare and medical insurance infrastructures.
Adequate medical insurance cover plays a vital role during such unprecedented global public health emergencies, where timely access to quality care can be the difference between life and death. In the midst of this lockdown, Future Generali India Insurance Co Ltd (FGII), a client of Eicore, was planning to offer a innnovative group health insurance cover.
Thanks to the unique strenghts of Eicore’s HealthBuzz Insurance Management System, this insurance product was configured in FGII’s system within a record 24 hours, despite the tough work conditions owing to the countrywide lockdown.
More than ever, today insurers need to be agile and nimble. Access to the right digital infrastructure is key in maintaining the necessary competitive edge.
About Eicore Technologies
Both old and new Insurance organisations are looking at digital as the way forward and Eicore Technologies has emerged as a leading provider of software solutions for insurance companies around the world.
At a time of rapid change in the industry landscape and mounting competition and customer expectation, products & services by Eicore empower insurers to compete by creating the digital infrastructure needed to move faster and connect more effectively with their customers and distribution partners.
Headquartered in New Delhi, India, Eicore has clients in 3 continents across Asia, Africa and Oceania and representative offices in Hong Kong. Eicore has an extensive distribution network that includes PwC as a global partner along with a bevy of country-specific partners.
Some of the most globally trusted names in Insurance rely on eicore to meet the digital needs of their businesses.
How Future Generali became Launch Ready for their New Coronavirus Insurance Product in 24 hours
Eicore Technologies adds two marquee names to its client list in the Vietnamese market.
InSmart Limited Company - a leading Insurance TPA that strives to be recognised as a “one stop service centre” in the insurance industry in Vietnam. InSmart opted for Eicore’s TPA system – HealthX. Given its adoption by some of the leading insurers and TPAs globally, HealthX met the majority of the requirements of InSmart and also enabled seamless integration with external entities right out of the box.
Dai-ichi Life Insurance Vietnam - a subsidiary of Dai-ichi Life Group that has consistently remained a market leader in Vietnam in terms of capitalisation and premium underwritten throughout its 12 years of operations. Dai-ichi Life Vietnam sought a standalone system that could help adjudicate both health and life insurance claims. The decision to opt for Eicore’s HealthBuzz (HB) insurance management software was made as HB addressed most of the business challenges envisaged with the help of the powerful product configurator built-in, the customisable workflows and the short implementation cycle.
According to the Asian Development Bank’s Development Outlook of 2019, Vietnam’s GDP is touted to grow at 6.7%. As per the the country's Insurance Supervisory Authority (ISA), Vietnam’s insurance sector seeks to sustain a growth rate of 18.42 percent this year. In a growing economy like Vietnam, having the right digital infrastructure is crucial for insurance organisations.
This move further strengthens Eicore’s presence in the South & Southeast Asian Market as a leading choice for insurance organisations in emerging markets. The year 2020 has been envisioned as the year of expansion for Eicore, with a strong focus on further strengthening presence in Asia and expanding deeper into Africa and the Middle East.
Eicore’s products and services are designed keeping in mind the dynamic needs of the insurance ecosystem, with a laser-sharp focus on providing end-to-end functionality.
About Eicore Technologies
Both old and new Insurance organisations are looking at digital as the way forward and Eicore Technologies has emerged as a leading provider of software solutions for insurance companies around the world.
At a time of rapid change in the industry landscape and mounting competition and customer expectation, products & services by Eicore empower insurers to compete by creating the digital infrastructure needed to move faster and connect more effectively with their customers and distribution partners.
Headquartered in New Delhi, India, Eicore has clients in 3 continents across Asia, Africa and Oceania and representative offices in Hong Kong. Eicore has an extensive distribution network that includes PwC as a global partner along with a bevy of country-specific partners.