Do you know what’s great about the digital age? It’s about making things quick and easy, from booking flights to ordering food at a restaurant and getting your insurance. That’s why business owners need to build businesses utilizing Insurtech tools available on the market today.
Traditionally, insurance was built on paper, manual processes, and uncertainty. For example, there’s a lot of work that goes into ensuring a policy is paid out when it should be (and not too late), but you could never get ahead of the curve with these things.
In the digital age, we can make those operations run as smoothly as possible. Insurtech tools help automate manual policy creation, customer service requests, and claims.
Automating processes makes businesses more efficient by saving everyone time, money, and effort. Customers get better support at every stage of the purchase journey, and employees get tools to be more efficient while providing high-quality services.
In this post, you’ll discover how essential digital transformation in business is in 2022.
- Digital transformation involves using various technologies like AI, ML, RPA, and hyper-automation to streamline operations and is essential to remain relevant in 2022.
- Businesses can cut costs, boost customer satisfaction, and increase revenues by leveraging the right digital experiences.
- Consumers expect businesses to provide fast, seamless, and personalized digital experiences.
- Meet customer expectations with innovative services powered by cloud-based solutions, agile software development, mobile connectivity, and SaaS platforms.
At its heart, digital transformation is about managing change. The goal of digital transformation is to reduce the cost and increase your organization’s agility by leveraging technology and digital resources to make better and faster decisions.
Digital transformation is an umbrella term for implementing new technologies and processes that include:
- Robotic Process Automation (RPA) – an application of technology that automates routine business operations
- Artificial Intelligence (AI) – makes it possible for machines to learn from experience, adjust to new inputs and perform human-like tasks
- Machine Learning (ML) – a type of AI that enables computers to learn without being explicitly programmed
- Hyper-Automation – incorporates advanced technologies such as machine learning and artificial intelligence (AI) to automate processes and augment humans
The long-term implications of digital transformation have far-reaching effects on many facets of business, from recruiting new employees to upgrading workplace technology.
Insurance companies face unique challenges in the current market. Worldwide, the demand for insurance is on the rise. The internet has given people access to information and other resources, including ways to compare prices and coverage from insurance providers.
Consequently, customers expect better service at every stage of the purchase process, regardless of the product or service. This shift makes transformation critical for insurance companies to retain customers who expect a modern digital experience.
By using Insurtech tools, businesses can:
- Reduce costs
- Increase customer retention rates
- Streamline policy creation and claims processing
- Improve customer service
- Make employee workflows more efficient.
As mentioned above, customers expect great things from today’s companies they do business with. One survey found that 72% of consumers say they only engage with personalized communications.
Previously, providing this level of personalization would require extensive time entering data manually. With digital transformation, you can automate processes and gain access to data that your company can use to tailor experiences to customers. For example, chatbots can answer common questions.
Many insurance companies have fallen behind when it comes to digital transformation, with leaders often viewing the initiative as a “convenient to have” rather than a necessity. Now, insurance companies are facing an increasingly difficult challenge, being asked to reduce costs, improve profitability, and increase customer satisfaction, all simultaneously.
Digital experiences help meet these challenges by increasing the speed of business processes, reducing errors, and streamlining how companies manage information from multiple internal and external sources.
As consumers become accustomed to using technology, they expect more from insurance companies, such as:
- A seamless experience across all channels (online, mobile, and brick-and-mortar)
- Quick responses to questions and concerns via email, social media, and text message
- Easy access to information through self-service portals
Customers want a modern digital experience when they interact with businesses, requiring fast access to information and services on any device. They expect their interactions to be personalized based on their preferences and past behavior.
In addition, consumers expect businesses to anticipate needs and proactively provide products and services before they ask for them.
Products and services have become more personalized, and consumer research approaches have changed dramatically. Providing a simple, standardized product to address a segment of customers’ needs isn’t enough for businesses to thrive in 2022 or beyond.
Today’s products are more complex and require careful attention to detail, in addition to continuous refinement to improve the customer experience.
- Cloud-based solutions – provide the flexibility needed to support rapid growth also allow easy scaling back when required as well as providing access to improved security options, video communication via Augmented Reality (AR), and risk assessment with predictive modeling tools
- Agile software development – enables organizations to deliver new features faster than ever before. Insurance businesses can provide highly customized services without having to invest in additional labor or floor space
- Mobile connectivity – if you sell products and services online, more than likely, you’re going to sell them from a mobile device. Consequently, you need software built for iOS and Android mobile devices and includes full-touch navigation for selling on-the-go
- SaaS platforms – leverage AR to enable virtual inspections for accelerated claims processing in the age of social distancing. These solutions can eliminate the need for employees to work from home instead of traveling
The digital experience is often the difference between a sale and no sale. When someone purchases a product online, they can view it whenever they want, which often creates a purchasing need.
Although the digital age is a significant disruption for many business owners, particularly in the insurance industry, new technologies and ways of doing business will continue to make business aspects more manageable.
Companies that embrace digital transformation will have an easier time staying competitive and dominating their industry while those that don’t risk going out of business altogether. This step is vital in today’s hyper-competitive business environment.
As data and analytics become increasingly important, these trends will only grow. That’s why it’s critical for businesses of all sizes to identify their pain points and incorporate digital experiences into their existing processes.