Many of the world’s most important industries have made the shift towards digitization, and the modern insurance industry is no exception. The most promising insurance companies know that bolstering their current tech stack is the key not only to survival but also growth. But simply acquiring a new type of technology, such as a cloud-based insurance management system, doesn’t guarantee immediate success. Those who work in the insurance sector must also be aware of how that technology’s being used—and how to leverage it to stay competitive.
What are the most important trends to watch out for now that the insurance industry is quickly going digital? Here are five considerations that you should make, as well as a treatise on how these could affect your insurance company:
Heightened Popularity of Digitization for Insurance Businesses
The first trend to be aware of is that digitization is fast becoming the norm in the industry. In general, more insurance businesses than ever before have made the move to digitize their operations. They have good reasons for upgrading to digital insurance platforms, namely the following:
- Cloud-based platforms can fulfill essential tasks like pricing, risk assessment, and analytics with twice the efficiency of a legacy system that’s reliant on manual processes.
- It’s also possible to use these platforms for complex and time-consuming steps in the insurance processes, such as triaging claims according to urgency.
- Upgrading to better insurance technology can also enhance an insurance business’s customer relationship management (CRM) capabilities.
Many of your peers in the industry are thinking about pooling more of their efforts and their resources into a digital transformation. It’s either that, or they have already done so. That means that the onus is on your company to adapt and become even more responsive to the clients enrolled in your insurance programs.
Expansion of Insurance Programs to New Geographical Territories
Aggressive international expansion is another trend you should watch out for. The most competitive global insurance companies have started branching out across borders and tapping new markets away from their home regions. Since their home markets may be flat, these companies have made use of digital technology to start expanding and building international awareness of their brands.
For sure, insurance companies that are willing to expand have many challenges ahead of them. They will need to put in the time to study their new markets, as well as the regulations that govern the industry there. But the payoff is significant: in the long run, they’ll earn the lucrative opportunity to sell their insurance products to a fresh customer base. Who’s to say that you won’t be in that position someday? Perhaps you can consider international expansion a future goal for your own company.
Even Simpler and Faster Insurance Processes
The speed and efficiency of the digital era have made one thing more apparent—that customers prefer things to be simple and straightforward. The same applies to enrolling in insurance programs and going through the motions of their insurance processes. Long, complicated, and difficult processes cause customer fatigue and decrease their overall satisfaction with their carrier. In contrast, streamlined knowledge and service delivery improve customer satisfaction and drive higher customer retention rates.
This means that overly complex “catch-all” insurance programs—once the cornerstone of legacy insurance systems—are on their way out. Simplified products and processes are in, and they will likely be for a long time. That’s why insurance businesses who have gone the digital route should use the upgrade in their tech stack to streamline their existing programs. Keep this in mind when you’ve deployed a new digital insurance platform of your own.
Unbundled Insurance Programs
Speaking of catch-all insurance programs, a greater number of insurance companies have stopped relying on them. Your peers may now be offering risk-based products that are smaller and more manageable for their customers’ life stages. These unbundled policies prove appealing to the emerging millennial market, many of whom are getting insurance for the first time. The “unbundled” approach allows them to slowly but surely get used to the processes and services of their carriers.
Unbundled products are also easy to implement and monitor for compliance using a digitized system. So if you’re wondering what new approaches to take using your new digital insurance technology, decoupling your policies is one of them.
Wider Availability of Personalized Insurance Products
The last trend that you should be aware of pertains to the delivery of personalized insurance products. Nowadays, the spotlight is on individual customers, and the custom factor has become a key business strategy in digital insurance.
There’s now a greater variety of personalized offerings in insurance carriers’ catalogs. Moreover, products are priced at ideal ranges for different customer life stages, and would-be customers receive targeted messaging through channels like email marketing.
Today’s digital insurance technology has helped realize a higher level of personalization, which companies should use to their advantage. You can use your platform to cater to the profiles of your individual clients, especially younger workforce constituents who are savvy with technology. By adding more personal touches to your current lineup of insurance products, you can make your company stand out and stay relevant in the industry.
Final Words: Your Place in the Future of the Insurance Industry
By now, it may be clear that an insurance digital transformation is underway for many. That kind of change may be good for your own core insurance system as well. Investing in a digital insurance platform may help you respond to your clients’ needs much better than before. That is what will cement your place as the insurance provider of choice amidst steep competition from your peers.
For both trends and long-lasting indicators of success in the insurance industry, the goal is to stay at least one step ahead. Here’s to staying on top of your new technology and making an impact in digital insurance!