With unprecedented technological advances and shifting customer and employee expectations, the insurance landscape is set to keep changing and several tech trends are compelling the industry to stay ahead.
It has been said that if you dislike change, you’re going to dislike irrelevance even more. This is true for the financial services industry where large insurance companies must continue to move with the changes in consumer needs and behavior or risk being left behind.
The digital transformation of the industry has forced companies to make the shift from simple digitization — typical of the Third Industrial Revolution — and improve the way of business by harnessing the full potential of the combined technologies, which is typical of the Fourth Industrial Revolution.
This move is compelling insurance companies to re-evaluate the way they conduct business. Digitalization opportunities for businesses are layered. They are not only about selling products directly to clients through digital channels, but some of the massive opportunities presented by technological evolution are “under the hood” of the business.
The focus here has been on using smart technology and analytics to remove any effort needed by a client to enjoy the benefits of our products and services.
Technology can reduce the cost of doing business in multiple places along the value chain, enabling insurance companies to create further value for their clients and shareholders. Technology and data also help insurance companies understand their clients more holistically. By tracking customer behavior, they can design more relevant products and processes, as well as pre-empt client needs. Automated and robotic processes remove repetitive and mundane tasks as well as reduce the incidences of errors.
There is no doubt that the use of artificial intelligence, machine learning, robotics, the internet of things (IoT) and behavioral analytics will continue to play a major role in shaping the industry. These technologies have led to insurers providing consumers with a new generation of digital products and lifestyle apps.
With evolving consumer market expectations, it is evident that the global emerging market is a mobile-first generation who expect ease of access, convenience, simplicity, and efficiency. That said, they have affordability constraints in a market that is characterized by low growth and high unemployment. This generation needs real solutions and outcomes for every life stage, as opposed to a one-size product. They are also looking for value for money.
This indicates that while brands matter to Millennials and Generation Z’s, these probabilities have a high need to be respected. Notably, they are a rising force around the world.
Besides, knowing that culture and tradition are important drivers for insurance and that clients value personalization.
With data and analytics driving policy personalization, this can include personalized product pricing that is tailored to an individual’s exact needs. This level of personalization was not previously possible as, without the assistance of modern digital capabilities, the personalization of solutions came at a high level of cost and complexity.
Now, modern open API platforms can integrate and customize solutions for clients without the heavy cost and complexity overheads of the past.
With this determined shift towards delivering personalized insurance solutions, the result is that the policyholder will benefit and be firmly placed at the heart of the business — exactly where they should be.