Digital processes and newer technologies like blockchain networks across industries are revolutionizing the operations aspect of various organisations. Maintaining data and processes through machines helps lower administrative costs, improvise their products and services and deliver on a timely basis. The new age insurer/s who is wanting to grow and stay ahead of the curve need to leverage on digital technologies and integrate them in a way that cements the pain points while keeping them rooted to their core vision and mission.
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Creating a digital arm within your organisation will not only ease out the mundane, time and money consuming areas, but also allow the companies enough space to adopt changes that can help them emerge as industry leaders. Staying in the competition requires companies to address consumer concerns. Be it any type of consumer, instant is the new buzzword. No one wants to invest time in waiting for queues and process that take up their time. When a website can introduce and educate the buyer about an insurance policy, it’s features, its claims and time frame, an insurance company should immediately invest in it. This maximizes the reach and also creates convenience for the end user.
There are some key areas where insurance companies can focus on to revamp their operations. Security, technology, consumer insight and overall presence is where the emphasis needs to be.
Big data management is a challenge faced by almost all industries. Companies will have to develop an online mechanism to secure customer data, prevent frauds and handle cyberattacks. Most insurance companies lack the infrastructure to manage data. Latest technological inventions like blockchain help in maintaining anonymity of both the parties involved in a transaction. Indian insurance space is yet to explore blockchain. The decentralised ledger is already a start in some parts of the world defining a new age insurer.
Large conglomerates must create a strong presence of your brand on digital and social platforms. Show types and features of policies online. Develop an app that has a simple and easy to use interface. Create a hassle free submission process for policies. Display the process of policy buying till issuance thereby creating transparency. Use chatbots that are constantly connected to end users. Leverage on digital tools and develop algorithms that give you insights into the trends and consumer behavior. Invest in data analytics and improvise on the services from time to time.
Invest In technology
Insurance companies must build a proactive approach in integrating newer technologies to their advantage. Inventions like blockchain, AI and machine learning have already penetrated in a number of countries and some countries are even developing digital insurance policies which will be a seamless way to insurance. Blockchain goes a long way in decentralizing data management, lowering transaction costs and securing customer identities. AI and machine learning can be an intelligent way to manage your digital processes.
The new age consumer is a lot more informed and conscious in decision making. Companies need to constantly obtain consumer insights through different digital mediums. Regularly connect with your customers via newsletters, mailers etc. and keep them informed about new products and services. Introduce products that help customers at different life stages and circumstances. Communicate them through all digital mediums.
A number of countries and insurance companies in particular around the world are leveraging technology and digital solutions to create better process. High ledger maintenance costs that decline revenues is a pain point for insurance companies. A digital ledger like blockchain is a great way to maintain data in a cost effective manner. Blockchain can also create digital policies that are easy to access and protects the identity of both the parties – the seller and the buyer. When companies encounter frauds or hack attacks, a lot of data is at risk or just gets lost. Blockchain tech comes to rescue here as it has a secured identity framework and gives controlled access to its users. This helps in easily identifying malicious transactions online and taking immediate preventive measures.
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