The digital age has changed how every industry operates, and the insurance industry is not an exception. New software solutions and technology trends have changed the way insurance businesses are operating. Insurance companies have to adapt to the new digital age or they risk falling apart completely.
We know it can sometimes be a pain, but automation and digitalization is the wave of the future. Most people dislike dealing with internal processes. The traditional methods often end up being too complicated.
We have entered a new decade. That means less confusion and complications. Doing everything the traditional way takes too much time. According to reports, over one million jobs deal with automation in the insurance business. That number is set to rise as time moves forward. Automation is more than a trend. It has become a new way of life.
Insurance companies across the board want to reboot the way we do the traditional claims processing. Customers are living in the new world while companies are still using methods of the past. That does not sit well with people.
Some agents work in relatively small practices. They can get away with using paper trails. Most companies cannot. They have large volumes of claims that have to be processed every day.
Digitalizing the paperwork is more accurate and efficient. It reduces the time you spend on processing. It will also streamline the process to reduce the number of duplications, as well as reducing the number of clients who have outstanding dues. This is one trend that you need to include in your new methods.
Social media is a tool that more insurance companies need to use. You may not like to use it in your time, but you need to consider using it for business. There are many tools that you can use to customize products for different clients. Social media can also help you find cheaper products for your company and your clients.
There was a BCG study conducted recently where it was revealed that more than half of customers are willing to share personal details if it means getting a cheaper insurance product.
The telematics tool is installed in the car. The client has a record of everything, including how much they drive and number of accidents. It will also keep track of your driving. Some might consider that a bit intrusive. but it does help create a product tailored for every driver. More companies are using the tool to customize their insurance products.
You hear a lot about this, but how does it relate to insurance companies? Blockchain reduces the number of reinsurance companies deal with. Reinsurance is when multiple companies buy a lot of policies from many insurers to limit the liability they would have in the case of a disaster. In other words, it tracks everything better.
Insurance fraud is estimated to be more than $40 billion per year. That eats away at the profit and loss statements for everyone involved. It goes beyond simple analytics. It helps insurance companies and the adjustors identify the red flags for suspicious activity more efficiently.