What tech innovations are happening in insurance
In the wake of change caused by a number of global events, many industries have been challenged to rethink traditional operating models and create new and innovative ways to engage with customers.
For some, pivoting and embarking on the journey to digital transformation has not been easy. For insurance, it is clear the industry has not escaped the challenges of digital transformation, but insurers have responded quickly to the disruption. Yes, the industry is working through continued disruption as the world relies on its services and support, but many well-prepared, digitally-enabled organizations are finding just how nimble they can be during turbulent times.
What we see is resilience, which is built upon the implementation and effective use of new and innovative technologies, many of which have been deployed with a broad set of user and customer experiences at heart.
There is no doubt that customers are no longer in the same position. According to the Duck Creek Global Consumer Insurance Insights survey of 2,000 insurance consumers globally, customer expectations and demands have evolved significantly. Technology plays a key role in addressing these demands to ensure insurance companies can meet customers where they are and capitalize on brimming market opportunities.
Personalized experiences
Consumers are growing increasingly receptive to new types of insurance. From the bundling of traditional services to new-generation products and solutions, these options bring personalization and added value to consumers that best address their needs.
This poses a challenge for insurance companies to be able to iterate new solutions with speed and go to market faster. It also highlights the importance of an ecosystem model where capabilities – from data prefill and digital customer service to automated communication – are seamlessly integrated into one single platform. This allows insurance companies to bring extended capabilities to consumers without costly delays and improve the overall customer experience.
Software-as-a-service and low-code capabilities do just that. This technology enables carriers to innovate, not from scratch or ‘ground zero,’ but build upon existing product factories and inheritance models that reduce repetition and errors, and improve speed and operational efficiency. Not only does this address consumers’ ever-evolving needs, but also redefines internal models and processes, allowing companies to be more agile and nimble in times of disruption, which helps them gain a competitive advantage in the changing insurance market.
Omnichannel
An omnichannel approach provides engagement opportunities between an insurance company and its customers across multiple channels – as well as strengthening the value of agents and agencies for increasingly complex or niche lines of business.
Digital channels have risen in popularity and become more prevalent in recent years. From website to smartphone to digital applications such as voice-enabled AI and speech-to-text, customers approach their insurance needs with a channel that is the best fit for them. For example, 50% of consumers from the survey said they would search for insurance online, while 40% said they prefer to interact through their insurance provider’s website.
To create a unified experience for consumers, it is important for insurers to make the best use of data that is flowing in from numerous customer touchpoints.
When each business element – from IT to operations to customer service and other customer-facing departments – share the same and most up-to-date information, insurance companies are better able to deliver on customer expectations. This can be achieved with data analytics and predictive models, which allow insurers to gather real-time updates, automate processes, and predict where their customers will show up next.
While the majority of respondents preferred to buy insurance directly from a carrier, over 25% of purchases were completed via brokers or other third parties, according to the survey. This highlights that agents still play a key role in the buying of insurance products and services as well as claims processing, especially when it comes to high-touch customer needs.
New doors
In the past few years, we have witnessed firsthand just how resilient insurance is. While the industry is moving full steam ahead with its digital transformation, there is still a plethora of untapped engagement opportunities for carriers.
For example, according to the survey, 95% of consumers said they would like to hear more about the status of a claim and 32% said they never hear from their insurance provider on an annual basis. Consumers’ demand for visibility into claims processes challenges carriers to be more engaged, easily accessible and share real-time status updates.
How can innovative technologies support this need?
AI, machine learning, and automation, for example, allows carriers to reengineer core systems to be more predictive in nature. In auto insurance, this helps generate damage and cost estimates for repairs in real-time. In property and casualty, customers can be contacted and serviced at a higher volume and higher speed. It also identifies the possibility of risk, detects fraudulent claims and automates the decision-making process.
Insurance companies are becoming increasingly tech-enabled. This digital-first approach will allow carriers to maximize operational efficiency and improve claims handling accuracy, with the end goal of creating seamless and more personalized experiences for customers.
Use cases for emerging technologies are already on the rise. It will be an interesting trend to watch as self-driving cars, sensors, and more IoT become mainstream and tightly integrated with other technologies.
