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Despite the many changes in industry standards and technological advances that have occurred in this industry. The main factor driving insurance innovation is the customer. In pursuit of an optimal customer experience, insurance companies are consistently looking for solutions that improve their performance and meet customer expectations. Failure to meet these expectations means falling behind competitors in an increasingly competitive space.
Benefits of Insurance innovation
So how can insurance innovation help operators win and retain their customers? It comes down to two benefits: increased flexibility and increased responsiveness.
Flexibility: On the customer side, flexibility refers to the customer’s ability to conduct business. You also need self-service through a number of different channels. The insurance industry’s digital innovations have made it easier for insurance companies to provide high-quality services. The service can created via the web, mobile apps, on the phone, and even via chatbots in a seamless way.
Responsiveness: Because there are so many points of contact, it is now easier for insurance companies to provide a highly responsive service that feels personal and empathetic. When people feel genuinely cared for in times of distress or need, they are more likely to be happy, repeat customers.
According to the Boston Consulting Group, “Insurers compete for new digital-native customers. To do so, they must break the status quo with new digital businesses reinventing conventional insurance offerings. Digital innovation is the key to winning customers and creating new revenue streams.”
With so much change in the world – both within the insurance industry and beyond – there are certain innovative insurance trends to watch out for. Here are seven concepts and technologies that are and will continue to disrupt the insurance industry and redefine expectations for insurance companies.
7 disruptive ideas that are changing the insurance industry
Workflow automation with Machine Learning
Machine learning, a sub-category of artificial intelligence (AI), has use in insurance automation. While this insurance innovation is most commonly associate with chatbots and mobile apps (a customer-facing feature), it is also used to streamline workflows in the backend of operations. With machine learning, insurers can accelerate underwriting, process billing, manage internal queries, and more. All with dramatic improvements. An insurance company uses artificial intelligence technology to automate the pre-renewal underwriting process, which is 75% more efficient than a manual process.
Complaints processing through machine learning
Complaint processing is a notoriously slow process, or at least it has been in the past. Using artificial intelligence, as insurance innovation, insurance companies can now respond quickly to customers. It’s key to ensuring they get their money quickly. Using complaint processing software, agents can evaluate coverage. Then, communicate directly through the portal, create follow-up activities, and ultimately process complaints in a much more efficient process. By reducing cycle times, customers are satisfied and insurance companies can successfully process more claims.
Improved telematics and risk management
Auto insurance companies may have used telematics systems sporadically in the past. But they are increasingly becoming a traditional tool thanks to better risk management. The telematics system, a device that collects data about your driving habits. So, it can helps inform about underwriting accuracy and risk assessment to make this process more accurate and less expensive. Driving performance data derived from this insurance innovation can be used to generate more accurate pricing models. Which are ultimately “in line with the driver’s vulnerability to various risks and can be refined throughout the life of a commercial insurance policy” .
Improved conversational chatbot interface
You’ve probably experienced great chatbots where the interface feels very robotic, not conversational, and, frankly, clunky. Not only does this disappoint customers, this insurance innovation can take them away from your brand completely. “According to the survey, 73% of customers said they would never use a corporate chatbot again after a bad experience.” Fortunately, advances in AI technology, coupled with new insurance innovatio. It also have made it possible and necessary to create more conversational chatbot experiences.
API and insurance innovation
Application Programming Interfaces (APIs) give insurance companies the flexibility and scalability needed to develop and implement new and innovative solutions. Using APIs, you can connect different systems and applications and allow them to work together seamlessly. This is especially important in today’s market, as many insurance companies use solutions and applications from multiple vendors hosted both on-premises and in the cloud. To realize the full capacity of any technology system. Everyone needs to be able to communicate, share data and work together seamlessly on an open platform – APIs make this possible.
Insurance innovation have fraud detection software
New advances in insurance-specific AI also improve fraud detection capabilities. Because AI can process and analyze data much faster than a person can. Insurance companies are turning to this fraud detection software to look for patterns and anomalies in customer behavior and history that could indicate fraud. . For example, AI can compare new complaints with pre-existing data to detect when the value of a complaint is higher than normal, a key indicator of fraudulent behavior.
Conservation of human intellectual capital
Finding, recruiting and retaining high quality talent is a challenge for any company in any industry. Especially in the insurance industry. There is a relatively high level of burnout, driven by ever-changing regulations. Demanding customer demands. Then, advances in artificial intelligence technology that manages some day-to-day tasks. The good news, however, is that there is no substitute for the personal touch of an agent or claims handler. This insurance innovation is especially true in complex commercial and specialty markets. This makes it all the more important that insurance companies do whatever it takes to be more attractive to young professionals and those already established in the industry.
Ultimately, the ability to meet customer demands and continue to innovate in the insurance industry depends on the ecosystem in which solutions are built. To stay competitive, you need to look for an easy-to-integrate. You also need to highly configurable platform that supports the use of new data. Then, analytical sources and business models. With these more flexible and powerful tools, you’ll be able to deliver the level of service your customers expect and stay one step ahead of whatever’s happening in this ever-changing industry.
