newsbanner newsbannermobile

In the News

Technology-driven transformation is the future of insurance

1/4/24 8:56 AM

Technology-driven transformation is the future of insurance, BFSI News, ET BFSI (indiatimes.com)

In 2023, post the pandemic years, the insurance sector continued to experience transformation driven by the evolving expectations of a digitally connected populace. The adoption of modern technologies, with AI taking centre stage in understanding customer intentions, providing real time recommendations and resolution, is the future of service driven companies offerings. NLP driven chatbots emerged as integral components, delivering quick & interactive experiences while reducing dependence on human assistance, wherever possible. It also elevated personalization by tailoring product offerings based on user interactions, all while prioritizing customer profile-based recommendations.

Looking ahead to 2024, the industry is poised for a substantial leap as it fully embraces technologies like AI, GenAI, IoT, the metaverse etc. These innovations promise transformative changes, ranging from improved customer interactions, distributor efficiencies, instant claim processing and secure, customer consented, data management. This technological integration is expected to enhance insurers' accessibility, penetration in diverse markets, superior CX and claims processing capabilities.

Some major impacts will be visible in the following areas:

Customer, Distributor and Employee experience (CX, DX and EX)

The evolving landscape of CX, DX and EX are now important factors in making choices when selecting an insurance provider. Technological strides have reshaped this experience, prompting insurance companies to craft user-friendly digital platforms aligned with the prevailing DIY trend. These platforms empower distributors and employees to effectively enable customers with seamless exploration of coverage options, instant quotes, and self-assessments, facilitated by intuitive interfaces driven by AI, predictive analytics, digital identity verification, and more. These innovations also expedite policy persistence, ability to resell, claim settlements but also fortify fraud prevention measures.

A noteworthy development is the emergence of vernacular chatbots supporting regional languages, promoting inclusivity, and extending digital services beyond metropolitan areas. AI-driven underwriting has revolutionized conventional risk assessment processes, enabling real-time customer decisions without the need for extensive documentation or medical tests.
Looking ahead to 2024, Generative AI is poised to be a transformative force, offering increasingly sophisticated solutions, and ushering in an era of hyper-automation. This automation will extend to tasks such as document review, video-based risk assessment, payment calculations, and communication with customers and claimants.

Advisory & services

Quality of advisory plays a significant role in CX, DX and technology has driven significant change in industry's approach towards advisory. Technology, particularly through AI, predictive data analysis, IOT location-based services is revolutionizing advisory services, altering how the industry interacts with and serves customers and distributors by offering streamlined onboarding experiences that enhance conversion rates and customer satisfaction.

AI algorithms leveraging historical customer data and real-time information have the potential to provide proactive recommendations. By analysing spending habits, investment portfolios, and life aspirations, AI can predict the optimal financial product for each customer. These data-driven, highly targeted recommendations delivered through the customer's preferred touchpoints, have the potential to build a consistent and seamless experience across touchpoints and channels, ultimately fostering trust and loyalty.

Business Operations

The synergy of AI and data can not only unlock avenues for introducing new innovative personalised products but also have proven effective in creating business models for upselling and cross-selling which empowers insurers to scale their operations with efficiency.

Digitalization & automation, a true game-changer, are substantially diminishing reliance on paperwork, leading to enhanced service quality, faster underwriting, expedited processing times, and prompt responses to policyholders etc. This transition is contributing not only to heightened customer satisfaction and increased retention but also to the attraction of new customers. The strategic realignment of business operations through automation will continue to play a pivotal role, ensuring significant cost optimization across the entire value chain within the industry.

This article is authored by Kayzad Hiramanek, COO, Edelweiss Tokio Life Insurance. All views expressed are personal.

Asset Publisher