Digital transformation in insurance

Every day more and more companies are discovering the benefits of digitizing and automating processes, joining the phenomenon of digital transformation in the insurance sector. They begin to incorporate technological tools that achieve competitive advantages over the rest, such as:

  • Build customer loyalty thanks to a simple and valuable shopping experience
  • Optimizing resources and operating costs
  • Automate tasks
  • Gathering all customer and user information in one place

Although for so many years the insurance industry has managed to maintain, focusing only on selling the same product over and over again without any change, reinvention or innovation; we are facing a new global trend, in which many insurance companies or brokers are finally incorporating digital strategies that allow them to scale their sales and differentiate themselves from the rest.

Main digital changes in the insurance sector

Many insurance businesses are joining this new trend mainly because of the demands of the new generation of consumers, who are looking for an instant and digital service that does not depend on schedules or phone calls. They want to do everything autonomously.

To this we add the constant technological development and digital innovation, the increasingly accelerated and intensive use of data, the emergence of new distribution channels and the birth of digital companies. That is why we believe that today any company operating in insurance must take into account factors such as: the change in the mentality, habits and behaviors of customers.

Social Media

This phenomenon does not simply mean that nowadays anyone has a profile on social networks, it also marks the change in people’s patterns and habits, dedicating hours to interacting and browsing them.

As a business, we must understand that, increasingly, people are reviewing and taking into account what is said about an insurer on social networks. In most cases, what they read about it is decisive when it comes to choosing one or another.

This not only forces us to be present to sell insurance on social networks, you should also aim to respond to their questions or address their criticisms. In addition, it can give us clues about what new needs arise or what they value most during the experience of taking out insurance.

Mobile channel

Increasingly, the cell phone is becoming the favorite means of contracting and managing what has been contracted. The reason for this phenomenon is due to the convenience and usability that businesses and the device itself tend to offer: do everything when and where you want, autonomously, with just a couple of clicks.

Given this new user preference, why not allow them to take out and manage policies from their cell phones? Sign documents, declare claims?

Geolocation

As you may already know, there are certain prices and coverage conditions exclusive to certain geographic areas. Hiding from your users the advantages to which they do not have access will avoid frustrations and showing them only to those who can enjoy them can increase your closing rates.

Even so, don’t forget that users may feel that they are losing their privacy, so we recommend that you carefully review your message.

Big data

Undoubtedly, Big Data is a tool that provides great value to insurers and brokers if you know how to approach it.

It will allow you to define customer profiles and behavioral patterns, being able to determine levers to retain or acquire new customers. With this, you will also be able to scale your sales, since certain manual tasks disappear.

In other words: Big Data in insurance makes it possible to apply predictive models to reduce costs and increase sales and identify those customers most likely to declare claims or less interested.

Automation

This model is a step forward in insurance technology. It is about putting efficiency at the service of all those involved in the insurance market: from the operators to the end customers, including sales channels and partners.

Intelligent automation is a great competitive advantage, as it combines big data and AI and makes it possible to achieve the following:

  • More efficient structures and systems
  • Reduced workload for employees, who can tackle other tasks
  • New sales systems and revenue models
  • Increased performance in the service procurement process

Machine Learning

Combined with Big data, it is a technological breakthrough that through techniques of “understanding” past behaviors, is able to draw certain conclusions, creating a predictive analysis.

In other words, Machine Learning allows to discover hidden patterns in millions of data with even non-linear relationships. In the insurance sector it can solve questions:

  • Optimal segmentation of customers, according to their behavior
  • Fraud detection
  • Optimal product portfolios for each segment
  • Recommendation systems
  • Loss prevention
  • Improved calculations
  • Analysis and monitoring of outsourced sales processes
  • Prevention of queries and complaints

Artificial Intelligence

With AI in the insurance industry, unique experiences can be created for each customer depending on what they are looking for, buying or renewing. One example is chatbots, which through predefined systems, will give one answer or another depending on the query or type of customer.

Focus on the customer

The user must always be at the center of the entire strategy when the aim is to generate a true insurer-customer connection. And increasingly, customers expect this to be the objective of any company.

Making processes easy, providing instant solutions… are simple actions that will make the user feel confident in the company.

Software and SaaS

Insurance software is undoubtedly the great accelerator in the digitalization of the insurance industry.

There are already many companies that have decided to implement this solution, providing greater agility, allowing them to take advantage of market opportunities and scaling sales and processes.

SaaS models for insurance are, in short, a great strategic aid that saves both resources and time.

Benefits of digitally transforming your insurance business

The advantages of going digital are many, although the ones we consider most important are the following:

Reduce time

Technology allows you to streamline management for both the customer and your business, with functions such as automatic quoting, online service contract or online communication with an advisor, among others.

Increase revenue

Thanks to the automation of the activity and the improvement in collection processes.

Improve customer satisfaction and experience

The processes become more transparent, clear and agile, which triggers them to prefer to use your insurer’s services without feeling the link as something tedious.

Save resource costs

Through AI, automation and digital transformation of processes, you can optimize processes and achieve greater profitability.

Simplify access to information

Both your insurance business and customers can have access to relevant and up-to-date information easily and in real time.

How Nowo.tech helps you in your digital transformation

To be successful in the increasingly competitive insurance industry it is essential to have a vision for the future by betting on a digital transformation, and in Nowo.tech we know this. That is why we offer you a tool that provides solutions for embedded insurance, so you can implement in your business and automate policies in an API, in which your customers can access and manage their insurance without the need for a third party, favoring speed, agility and optimizing resources and costs.

Ask us any questions you may have, our professional customer service team will provide you with the information you need at the moment. Easy, fast and without commitment.

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