The insurance industry is not averse to challenges, but the biggest problem they are facing is moving towards digitization. Of late companies like www.insurancerevenue.com and others are boarding on a transformation due to various innovations with the help of technologies like analytics, internet of things, machine learning etc. The use of these new technologies as per experts at www.investopedia.com opinion will help not only companies but also customers by giving more choices, better quality of service all at a much lower price. The companies with the use of these technologies stand to gain on revenue and costs.
Listed below are a few ways insurance companies can leverage the digitization and use it to their benefit.
Rethink the brokerage based systems: Many new companies are breaking away from the traditional form of insurance management by offering insurance to customers through self-serve technology. A new insurance segment called the peer-to-peer insurance segment is using social networking as a tool to create an insurance experience. Through this model, the company can save money through unwanted overheads with improved efficiency and transparency. Even traditional insurance players can utilize social media platforms to interact with the customers and capitalize on the success.
Better loss prevention: New technologies are emerging not just for business but also for use at home, IoT is changing the way the systems are connected at home be it the entertainment systems, security systems or the home appliances. With all these systems at home going online, it can help mitigate loss due to prevention. The best example is about applications warning people of unusual activity in their home, need for change in batteries for smoke detectors, etc. The data available through IoT will enable insurance providers to act as per the resource available to them.
Personalization: Due to the availability of user data, insurance providers can provide customized services and hence you can enjoy a better relationship with your customers, which has become a differentiator. There are various channels through which you can engage with your customer, and the best mode is through mobile. Insurance companies can provide personalized communications through email or phone alerts and reminders regularly. Social media also plays a significant role in creating and expanding your customer base outside of the already available current customers. By involving in online communications, you have an opportunity to capture a potential customer.
Explore new markets: Using digital technologies in insurance companies helps create many new opportunities. The customer data that is available to them can help them get a better view of the what the customer needs are how they are investing. Earlier the providers did not have such a view and hence could not predict customer needs and behavior. Due to the transparency digitization has brought to the insurance industry, a new market for cyber insurance is born. Cybercrime is on the rise in the past few years and hence the need for cyber protection. It is a vast market which is untapped as very few companies offer insurers cyber insurance. There are many such untapped markets which new companies can use to their advantage with the help of latest digital technologies.