Digital Transformation Picking Up the Pace in Insurance Industry

Insurance CIO Outlook | Monday, October 12, 2020

Digitization has already brought up substantial transformations in the Insurance Industry since the past few years.

FREMONT, CA: Digital transformation is quintessential for all the industries, and for the insurance sector, it is a business priority. Digital transformation in insurance is not just adopting technology but creating an innovative business model that focuses on customer demands, connected services, advanced technologies, and real-time data.

For realizing the full potential of technology investments, insurance firms must overcome the obstacles to growth presented by incompatible legacy technologies. Lack of collaboration with the IT function is preventing firms from realizing this. Another hurdle to address is related to the workforce. These concerns also stand in the way of digital transformation across the insurance industry.

While technology is having more significant impacts on business, insurers consider artificial intelligence and blockchain as notable players and having evolving roles in the future of the industry. As a relationship business, insurance can benefit from figuring out how artificial intelligence and machine learning can improve customer service and experience. Firms also see themselves investing significantly in blockchain applications within the next few years, with nearly half saying they will invest in internal blockchain shortly.

As the digitization process speeds up to provide better and faster service to customers, it is expected that fraudsters or fraudulent claims that are will also increase. Technology can also help in this area, that too without disturbing the customer experience. Data is the foundation for this, and the possibility of using enormous quantities of data quickly presents with reliable results. It is possible to develop an automated claims handling process.

The digital transformation in the insurance industry is in its full swing. The sector realizes digital transformation is not merely a beautiful thing to have but is increasingly the motor of the industry. Companies leading this way can take more significant advantages.

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