Insuranceciooutlook

How Digital Transformation Turns a Boon for the Insurance Industry

Insurance CIO Outlook | Thursday, June 17, 2021

Digitization allows for more meaningful customer interaction through various platforms, customized interactions, and, most importantly, online claims processing in minutes.

FREMONT, CA: Trust is the lifeblood of the insurance industry. When a customer pays a premium, they expect a simple, stress-free, and fast payout when filing a claim. Unfortunately, due to the lengthy appraisal procedures used in conventional insurance practices, this can often take more than 30 days.

Insurance companies that implemented modern technologies and streamlined their processes earlier, on the other hand, were able to dramatically reduce processing times and improve the quality of customer engagement. It's no surprise that digitized insurers are seeing a surge in sales, often exceeding a 100 percent increase as compared to conventional insurers.

While transformation of the insurance industry through technological adoption is critical for company growth, transforming an industry that offers one of the oldest financial products in history presents its own set of challenges.

The Pros of digitalization:

Every strategic shift has advantages and disadvantages. If insurers are to remain competitive in the new digital age, they must embrace technology. However, before diving in headfirst, consider the following advantages:

PROs

Technology can Help Save Cost

Although digital transformation requires a significant financial and time investment, it will benefit the bottom line in the long run. According to a recent study, automation can reduce claims costs by more than 30 percent.Personalization of insurance plans can also be enabled by technology, allowing insurers to price and underwrite policies more accurately for individual customers. This will open up a new world of long-term growth opportunities while also lowering costs

Digitization can Win Customer Loyalty

Digitization allows for more meaningful customer interaction through various platforms, customized interactions, and, most importantly, online claims processing in minutes. In the insurance industry, it will cost five times more to attract a new client than it does to convert a current one.For obvious reasons, happy customers are 80 percent more likely to renew their policies than dissatisfied customers. Digital policy application and renewal can be fast, easy, and available 24 hours a day, seven days a week, making the process seamless for insurance buyers. Online support providers can also provide answers more effectively and efficiently.

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