By: Cesilia Faustina
New technologies are revolutionizing the insurance sector as we know it. Digital transformation is now an integral part of change. As an industry with greater demands and changing customer expectations, it is crucial for insurance companies to take part in this disruption, or risk letting their competitors come to them.
Technology has seeped into every element of insurance. It can no longer be seen as a simple support tool to help businesses, it should now be a standard in the way insurance companies conduct their operations. Technological developments have affected the way most industries operate and that said, this is why everybody needs to be aware of digital insurance.
Customers today want everything done fast and directly, they also expect everything to be online. With the rise of the mobile craze, everybody expects to get everything done online through their phones. Let’s take for example that car owners would like to receive a quote on their vehicle insurance, surely nobody wants to go all the way to the insurance company to wait in line for a quote. People want direct results. Many people much rather do this whole process via their phones, where they can easily proceed with policy issuing, premium payments and auto-delivery of policy documents and receipts directly to their email.
Underwriting and claims hold great potential
Technological innovations are great, but many people care more about product development and distribution. What people do not realize though, is that underwriting and claims management have greater potential for change. Back in the old days, you would need to manually contact your underwriter and manually insert your claims. These days, nobody wants to go through this. Providing a powerful underwriting and claims management process is key. This is especially true seeing how this process serves as a core for the insurance industry.
Now, we are seeing more businesses providing a digital underwriting and claims process, where the utilization of insurance management systems is key. This allows users to directly insert the issue at hand, attach any supporting documents or images and automatically update this information to the underwriter. Any policy produced will then also be automatically updated through the system in a digital format. By creating a process that will fully digitize your core insurance process, you can easily win the insurance race.
Insurtech is officially the next big thing
According to FRISS, 88 percent of insurers are convinced that insurtech offers great opportunities. This shows how on-board many insurance companies are of going digital, be it via mobile applications, wearable, software or more. The industry is expanding insurtech; in the next few years, you can be assured we will be seeing a bunch of new devices, tools and other technological devices that will accelerate the insurance process.
Many companies now are looking to embrace such change and solutions. FRISS also stated that 11 percent of companies were considering buying insurtech companies to ensure continuity of maintenance and innovation.
A more secure process
Aside from accelerating the insurance process, technology helps to create a more secure process to conduct your insurance needs. As with the rise of technology, surely there will be more issues when it comes to security. This is not the case with fraud though. Digitalization is pushing the boundaries of fraud and making it easily manageable with a powerful digital system. Insurance software can help process big data in less amount of time while providing accurate results. This process will help with filtering your insurer’s information, as well as claims, cross-referencing all the information and documentation provided. A digitalized system that supports a powerful security operation will not only reduce fraud but keep all data and privacy safe.
Greater information and staff management
By creating a whole new look into the world of general insurance, one can handle and manage more data and employees. A digitalized process means a digital screening process for claims and other data, this also means all information will be recorded and digitally stored in one system. Such a process can create better organization when needing to analyze data, as well as communicate with employees.
A digital database will allow the tracking and access of certain data, depending on the authorities given. Imagine you own an insurance company with hundreds of employees, how are you going to keep track of all the data being processed with by your employees? Well, it turns out a digital operation helps.
Integration is the way
While we are on the topic of staff management, a digital insurance process also allows for dynamic integrations; which means aside from handling all the insurance processes, digitalization can also be integrated into the HR department of insurance companies and more. This also applies to the financial department and any other departments relevant to general insurance activities.
Integration is becoming a big part of the digitalization process. Any industry that goes digital requires a certain form of integration, considering when one goes digital, it essentially affects other correlating functionalities. Running a digitalized general insurance means a digitalized operation for the whole company, which not only includes the insurance process but everything connected to the company. Integration is key when it comes to running this tech-based model.
Learn more about ESKADENIA's General Insurance software.