Maybe you have recently started to hear a lot the term Insurtech, but what does it mean? And why should your business be interested in it?
Insurtech means the adoption of optimisation processes by the insurance industry to bring their services to the next generation. This is a bet that has increased in 2019. The word insurtech itself is a portmanteau of Insurance and Technology, inspired by the term fintech.
The insurance industry has had a long journey since its birth, adapting to every change in society according to each movement, revolution and technological advance.
Nowadays, there are more options than ever to expedite and improve services, with increasingly more companies joining the growing wave of Digital Transformation.
Why Implement Digital Transformation in your Insurance Business?
Five reasons to do it:
- Scaling up: Introducing high technology in your business like AI (Artificial Intelligence) or ML (Machine Learning) will help to lead you to gain a top position in the industry, attracting more customers. The perception of your company will improve in the eyes of your competitors and customers. According to Capgemini’s report Growth in the Machine, only 4% of organisations have implemented technologies like Machine Learning. This type of technology will be favorable to optimise sales, customer service and considerably reduce the number of errors in cases such as claims data-error inspection and correction. It stands to help to reduce the human intervention in processes that need an extensive amount of data, like report claims.
- Revenues and price optimisation: With AI systems or ML techniques, your business can be very precise when it is necessary to predict the risks of a client, it means to optimize the estimate of the cost of the service. In addition, according to Capgemini, Intelligent Automation could add $512 billion to the global revenues of financial services firms by 2020.
- Customer service: According to Capgemini, “On average, 64% of organizations have improved customer satisfaction by more than 60% through intelligent automation” and this rate is increasing. That’s why one of the biggest goals for customer success strategies is increasing the sustainable proven value and helping the client succeed with every project they have. Thanks to Digital transformation, it is possible to provide a more agile service, effectively and with less paperwork. One of the most notable innovations in customer service are chatbots, online systems designed to respond intelligently to client questions.
- Optimising leads: One of the most common drawbacks for insurance agents is the leads that are not qualified, wasting time if customers are not ready to purchase. AI systems can categorise possible buyers to assess who is ready to buy insurance services, in turn raising profits and saving employees’ time.
- Perception of the industry: Insurance leaders are concerned that the image of the industry has been damaged by bad client experiences, the mistaken belief that it is a purely lucrative business and uninterested in people’s well-being. But, through progress in the approach to the customer, direct and constant contact, improvements in service, and optimisation of prices, the industry can be seen in a totally different way. Its real purpose should be clear: to provide coverage and safety to each client.
References:
- Capgemini.com. (2018). Growth in the Machine: How financial services can move intelligent automation from a cost play to a growth strategy. [online] Available at: https://www.capgemini.com/resources/the-growth-in-the-machine/
- Forbes.com. (2018). Insurtech Isn’t Boring, Trust Me. [online] Sarah Kocianski. Available at: https://bit.ly/2GzrF8B
