The digital transformation in the insurance market is reaching new heights. With the help of insurance digital transformation, insurance companies are actively "digitizing" claims settlement and introducing artificial intelligence into business processes to optimize performance, drive efficiency and enhance quality.
Nowadays, the modern insurance policyholder is mobile-savvy and looking for a hassle-free, self-service experience. In search of these qualities, they can also buy policies from new players in the insurance industry. Simply put, modern consumers prefer to invest in insurance companies that have already adopted digital transformation.
There are three major reasons for the digital transformation in the insurance industry.
Customer experience, ease, convenience, design, and speed standards matter most for Millenials. Modern customers expect the same features from their insurance provider — and they're willing to find other service providers to get it if need be.
The rapid customer acquisition curve and successful IPOs of insurtech companies have drawn the attention of all major insurance companies unless they are living under a rock. This will undoubtedly move to the next generation of competitors looking forward to disrupting the status quo.
The recent pandemic has transformed the working culture and proven to be an accelerator for adopting technology, compressing years of incremental change into a span of months. Today, there is no need for storefront offices, claim processing centers, and processing hubs since most companies have already shifted to a remote work model. This has proven to decrease manual inefficiencies and overreliance on physical proximity in existing processes.
The digital transformation in insurance can help streamline the various business operations, facilitate customer interaction via chats, automate claims processing, and allow brokers to aggregate all their information to work faster and more accurately. However, the major advantages of insurance digital transformation can be summarized in four benefits:
The most advantageous effect of digital transformation in the insurance sector is the efficiencies it enables. With the help of AI, machine learning, and predictive analytics, almost every facet of insurance operation can be optimized for speed.
Modern customers demand services and attention at the tip of their fingers. They also want it to be tailored to their requirements, and personalization is now the status quo across all industries. Digital transformation in insurance with the help of AI and machine learning allows insurers to provide excellent customer service without overextending their resources.
The insurance digital transformation also enables the industry to become more agile and scalable at both the front end and back end of operations.
Digital transformation is also helping insurance companies become "future-ready" since these technologies will undoubtedly continue to evolve and create more advanced opportunities with time.
Eicore offers comprehensive software services and products for brokers, insurers, HMOs, insurance TPAs, self-funded schemes and retail users. Eicore’s health insurance claims management software is an end-to-end and client-focused software providing solutions for claims handling, delivering significant benefits to insurance organizations with its wide-ranging functionalities. The claims management software integrates seamlessly with the existing policy administration system and external entities, thus digitalizing the claim process and saving resources, operational cost, and time, increasing efficiency, and preventing fraud.