Insurance industries are now embracing technological changes. Technological advancements are inevitable and it has become necessary for the insurance industry to go along with the changing times. The product-centric and conservative insurance sector is facing major changes. New business models, new players, and changing customer expectations are forcing the insurance industry to respond to digital transformations by incorporating digitized services for their customers. Most insurance companies in the UAE are already digitized.
The transition can be challenging; transforming from a traditional model where agents sold products and having a transaction-based business to a customer-based model. Today’s consumers expect solutions and products that can adapt to their needs and lifestyle. They also expect transparency and clarity. Unlike in the past, customers are not bombarded with bulky application forms that some don’t read or understand.
Digital Transformation in the Insurance Industry
Insurance companies can easily embrace digitization by having a phased blueprint. They can review their current system, infrastructure, and situations to plan how to deal with the digital processes. This helps the company to focus on development and digitizing the workplace for future needs.
The most effective strategy in this industry is long-term evolution with near-term value addition. Digital transformation phases in the insurance industry include evolution, where the company starts to realize the potential and benefits of digital transformation.
Companies work on various projects to automate their processes and tune their businesses to suit their needs. In the next phase, the company uses advanced digital technologies and other enterprise solutions and also embracing emerging trends to optimize production. The last step is optimization; this includes working to develop futuristic solutions by embracing the next-generation technologies by innovating products and assessing integrated systems that improve all stakeholders’ experience.
Benefits of Digital Transformation to the Insurance Industry
Digital transformation has transformed the insurance industry in various ways. Operations are streamlined, claims are automatically processed, customers’ interactions are online, and brokers work effortlessly. Here are the benefits;
Today’s customers are attracted to fast and convenient services; they expect services wherever they are and whatever time. They also expect personalized products and services. Although the Insurance Authority Dubai regulations guide insurers about their business activities, there are no restrictions about using digital transformation to provide better services.
Digital transformation empowers insurers with relevant tools to give customers the best services without incurring unnecessary expenses. Machine learning and artificial intelligence create an excellent personalized experience for brokers and customers. You can pay bills, file claims, and view policies by using an app; brokers can use a single system for all their transactions. Digital technologies give customers instant feedback.
The most obvious advantage of digital transformation in this sector is that it improves efficiency. Artificial intelligence and other related technologies like predictive analysis and machine learning have been optimized to deliver services faster. Claims are processed instantly through an app and machine learning can speed up the policy writing process. Digital transformation is also beneficial; it speeds up the customer service process. Digital assistance and live chat aid customers whenever they are in need/want essential services.
Digital transformation helps insurance companies to future-proof their services and products; technological advancements are continuous and they create improved opportunities for the future. Artificial intelligence, machine learning, data analytics, blockchain data, and predictive analytics lay the foundation to help insurance companies to grow and adapt to new capacities and technologies.
Insurance companies deal with personal data and are vulnerable to cyber-attacks like hackers. However, cloud computing allows insurance companies to store data securely. You can also consult an expert from a law firm in Dubai to understand what actions to take in case of a breach.
Cloud computing is cost-effective; this helps the insurance company to spend less on storage. It also promotes efficiency and flexibility; this boosts business processes. Unlike conventional IT services, cloud computing promotes faster deployment. It also has various resources that can be shared by multiple users at the same time. Cloud computing solutions tailored for this industry help insurance companies to grow effectively and become customer-oriented.
Most customers feel forgotten after the sale of a policy. Digitization like the use of social media platforms like Facebook, Instagram, and Twitter helps insurance companies to receive feedback from customers and questions from prospective customers. They also help to promote new features and products; this way companies can serve customers faster and more effectively.
Post-sale services also promote customer-loyalty which is beneficial to the insurer; it increases sales and revenue. Loyal customers pay without fail and even invite their friends and families to do the same.
There is no doubt that digital technologies have transformed all sectors including the insurance industry. Although the evolution was slow, insurance companies have embraced technology and are reaping the benefits. The customer can send feedback and receive services instantly.