The insurance sector, till now, was slow in adopting newer methods and was governed by legacy business processes. With the advent of innovative technology and the push provided by changing market conditions and customer preferences, the industry has seen a positive change. The impact of technology in insurance industry can be seen globally as insurers have become receptive to technological advancements. 49% of CEOs in the insurance and banking sector are planning to significantly increase their investment in digital transformation, according to PwC’s 24th Annual Global CEO Survey. Insurers must get on board with the technology innovation in the insurance industry to keep up with the times and thrive in the market. In this blog, we will take a look at the major benefits of technology in insurance industry.
Top benefits of Technology in Insurance Industry
The insurance industry is transforming from being transaction-driven to being more customer-oriented. To stand out among the competition digital technology in insurance industry is being utilized to optimize processes, provide unified platforms and real-time information, as well as streamline the customer experience. Let’s look at some of the major benefits and impact of technology in insurance industry.
Conventionally, customers depended on insurance agents to understand the details of policies and insurance plans. With information available at the click of the button on the internet, insurers have to fall in line and provide product details online. Many companies are also incorporating tools that allow comparisons between different products to make it easier for customers to research a policy and understand the benefits before making a decision.
OpenTeQ helps in enhancing customer experience by its expert solutions in technology optimization for insurers.
To enhance customer experience, companies are aiming at providing an omnichannel experience. This makes the process of checking claim status, claim settlement, applying for new insurance plans, and filing claims extremely convenient for the customer through 24x7 online and self-service portals.
OpenTeQ offers solutions for transforming claims management and making billing systems more efficient.
In this dynamic market, customer expectations are high where the demand is for relevant solutions. Disruptive technology in insurance industry is making it possible to target the right customers with the best-suited products. Predictive analytics, AI/ML, and advanced data analytics solutions are being leveraged to proactively communicate with customers, increase customer engagement and build long-term relationships.
OpenTeQ helps your company unlock customer insights with solutions like producer sales enablement.
The insurance industry is burdened with a huge amount of paperwork that is needed for new applications, underwriting, and verification purposes. Technology in insurance industry can help in digitizing these processes and significantly reduce the amount of documentation required. In completely digital insurance processes, customers can also apply and submit their documents online. Additionally, the entire verification and underwriting formalities are also conducted online. These processes can also be automated for faster turn-around times and to reduce errors. This also boosts productivity and allows people to focus on customer relationship building leaving the repetitive jobs to technology.
OpenTeQ can transform your processes with new business and underwriting solutions using disruptive technology in insurance industry.
Insurance fraud costs the industry a considerable amount of money each year. A robust technology framework, utilizing advanced analytics and automation is a promising way of preventing fraud. Solutions like digital signature technology help in verifying claims and lowering the incidence of fraud. Data and analytics aid in the fraud detection process with predictive analytics that prevent claims payouts. This enhances the risk management capacity of insurance companies and can potentially save big losses.
OpenTeQ has helped insurance companies in fraud prevention with advanced automation analytics. Their digital signature technology solutions have lowered fake insurance account activations and fake claims for numerous insurers.
Overcoming Technology Challenges in Insurance Industry
With the Covid-19 pandemic, the global insurance industry has witnessed a major shift in the willingness of employees and customers to adopt digital technology. Even with this change, there are certain challenges that insurers need to overcome to engage digital technology in insurance industry. Hurdles like shifting from legacy systems to new cloud-enabled systems can be a challenge without the right partner. Furthermore, without expert handling, sensitive data may be exposed to security threats. Digital systems also acquire a large amount of data, that needs to be processed systematically to produce actionable insights. Else it may become a data dump that is difficult to manage and does not generate any business value.
OpenTeQ has the right experience and expertise to transform your insurance service chain to help you save costs and take advantage of disruptive technology in insurance industry.
Responsible Digital Transformation for the Insurance Industry
While accelerating towards digital transformation, insurers mustn't lose sight of being responsible. Responsible use of technology manifests differently for each stakeholder. For customers, it means being more transparent and ensuring data security without compromising on the quality of services. In the case of employees and management, it is imperative to reduce operational risks like fraud and cybersecurity issues. Organizations can achieve this with a robust digital strategy that encourages responsible behavior across the organization. Lastly, to responsibly fulfill regulatory needs, insurers must establish mechanisms for compliance and accountability and proactively avoid lapses, financial penalties, lawsuits, and mitigate reputational damage when necessary.
Companies also need to consider society as a whole to acknowledge financial inclusion and remove bias in decision-making. This can be achieved by educating employees as well as leveraging technology such as AI. Additionally, firms should try to make decisions that help the environment, like using clean energy, reducing emissions, and building green infrastructure.
Overall, Responsible Digital Transformation will bring about a positive change in environmental, social, and governance ratings.
OpenTeQ supports responsible digital transformation with innovative thinking and the best of technology and resources. With resources that are well-versed in handling a multitude of technologies, OpenTeQ is the perfect partner for you.