Digital Transformation In the Insurance Sector: Awakening the Wave of Innovation

By Insurance CIO Outlook | Tuesday, July 16, 2019

Insurers are embracing digitization and finding ways to optimize the transformation seamlessly.

FREMONT, CA: According to research, in 2016, insurance tech start-ups raised a total of $21.18 million, and this figure crossed $289.60 million in 2018. The insurance business is in the middle of a significant transformation, which is marked by innovation and technological developments. Improving the customer experience across the value chain with increasing the industry's penetration levels is the ultimate goal. Almost every insurance company in the world is embracing this new approach to stay relevant. The rise of insurtech companies for tech start-ups has immense potential to disrupt the industry. Insurance distribution is likely to be influenced the most, followed by underwriting, product creation, and claims management.

Insurance companies are looking to optimize the transformation through a greater customer-centricity by digitalizing their existing processes and conversational interfaces. To further leverage its digital capabilities, insurers are ensuring to equipage sellers with advanced digital tools. Customer Solution Generator (CSG) is one such tool, widely used by agents for lead management, customer prospecting, smart need analysis, and preliminary solution generation.

In the age of digital transformation, new-age technologies like blockchain, artificial intelligence, robotics, IoT, etc. are non-stop discussions. There is vast potential waiting to be unlocked at the hands of AI & IoT in the life insurance industry, whether in terms of real-time analysis or automatic triggering of reactions or services. Blockchain is viewed with a positive lens due to its perceived effectivity when it comes to identity management, claims processing, underwriting, fraud management, and reliable data availability. It stands exclusive on the grounds of offering reduced operational costs, and smart contracts, adding to the benefits in policy management. Insurance agencies have deployed blockchain specifically for risk selection and claims purposes. The insurer has amplified digital pipes to streamline its policy issuance, underwriting, renewals, and servicing. 

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