Technology is growing increasingly advanced and complex, touching all areas of daily lives and business activity, including the insurance industry.
With all-around digitalized modern realities surrounding us in wherever we go and whatever we do, digital transformation in insurance becomes a user-demanded must rather than a company owner’s desire.
Insurance Digital Transformation Trends Overview
Software is a crucial long-term investment for any company. However, with rapidly changing insurance software and the all-consuming digital transformation raging in the insurance industry, you, as a provider, might just not know how to keep your business in the loop.
In this article, we’ve compiled the trends that are most likely to affect your enterprise—which ones will be beneficial, what to look out for, and what strategies will be most useful in a few years’ time.
These technologies include:
- Changing Approach to Insurance
- Personalized Insurance
- Insurance and AI
- Data Exchange and Big Data Analysis
Let’s take a brief look at what insurance digital transformation tendencies 2019 has in store for us.
Changing Approach to Insurance
Progress in everyday technology is enhancing the ability to predict the chance of an event or outcome occurring. So, instead of being a passive risk-taker, insurers will become active risk managers. The insurance industry has been experiencing digital transformation for some time now, with the specialized insurance agency software allowing to effectively analyze and evaluate risks for businesses and individuals, often using data Clouds and Big Data analysis. It has become a popular tendency to use this feature to support risk management on a more individual level to improve habits and behavior regarding health. This way, providers help customers to move from reacting to risks to preventing them. For instance, lifestyle advisors and healthcare apps that encourage better lifestyle choices have been in style lately.
In order to successfully maintain their business, insurance providers must achieve a good balance between client coaching and selling their services. To do that, an innovative approach to customer service must be applied, involving an improved partnership with other businesses and insurance software developers. Only by extending the technical capabilities of your business processes and by adopting a wide range of new approaches and concepts, you can get your enterprise up to date in accordance with the enhanced standards of digital transformation for insurance.
We process unimaginable amounts of data every day, and will only do more. Your agency management system alone probably goes through terabytes of information in hours. This brings us great opportunities for fast and efficient service exchange, but also raises risks for fraud and cyberattacks. Following this increase, governments and entrepreneurs have emphasized the importance of secure data.
P&C insurance software vendors and life insurance companies are especially under risk due to the vulnerable nature of the information they keep. To protect sensitive data and the privacy of their clients, firms will have to put more effort and money into ensuring their security systems are capable of guarding their data flow.
With expectations of the public rising ever higher, insurance companies will have to follow the digital transformation course and find ways to provide clients with more opportunities to customize the service they’re purchasing. Individuals are only willing to pay for the items they actively use, anticipating specialists of all areas to deliver the highest quality product.
More profits are achieved by capturing and selling a purpose or an idea rather than a service. The product is personalized along the way, becoming more relevant for each individual user. The involvement of customers in the process of creation leads to the emergence of very specific service providers.
Business and life insurance software solutions will be based on the use of AI to analyze very particular needs, allowing highly customized insurance services. Data science, IoT and telematics will become a key set for underwriters and actuaries.
Insurance and AI
In 2019, digital transformation in insurance is focused on automation and the creation of smarter, more advanced in terms of processing software. Artificial intelligence is showing great promise in the market and is likely to be the move that the best insurance agency management systems should make in near future. It is more than likely that we will see an increased influence of a machine force in routine task performance in all areas, including insurance.
Automated insurance agents, such as chatbots and advisors, will take the first steps to provide customers with personalized services that will suit their unique needs and requirements. Analyzing user profiles to collect databases on them will allow AI to determine the communication strategy for each individual precisely, increasing customization of insurance services.
Data Exchange and Big Data Analysis
Most modern technological devices are equipped with some sort of a Cloud connection system. Satellite systems connect gadgets, allowing Big Data to be gathered from around the world.
Collecting and analyzing Big Data allows businesses to predict trends on the market and anticipate major changes, thus adjusting their strategies. Using Big Data will ultimately boost productivity and increase profits, also allowing a closer interaction between businesses and customers.
Companies that employ Big Data analysis in insurance product development software will be able to focus on their marketing time, strengthen business connections, and make their products more flexible and personal.
IoT and Cloud storage of data are gaining more important roles in business. Their increasing popularity has given rise to predominant trends in insurance and its digital transformation over the past couple of years.
Customers have higher expectations than ever before, and these can be met via Big Data analysis. It facilitates high levels of personalization of services and allows more individual communication of businesses with their clients.
Artificial intelligence is going to take over in performing simple routine tasks and promote efficient handling of large volumes of information. Companies that work closely with AI will witness a rise in productivity and profits due to more accurate predictions of market trends and changes.
Cybersecurity will become one of the top items on the priority list in any insurance agency management system due to the sensitive nature of data they handle. And it’s the digital transformation in insurance tools and efforts you employ in your business that will help you ultimately maintain a high industry standard in your services.