The word ‘Digital’ has made its way to reshape almost every industry the remarkably resilient insurance industry included! The nature of competition in the insurance industry is at the helm of change with new participants, changing buyer behaviour, and technological innovations that threaten to disrupt traditional business models. To flourish in this new landscape, insurers will need to design a structured approach to their digital transformation strategy leverage on Mobile, Social, Internet of Things (IoT), Smart Machines, Cognitive Analytics, and other disruptive technologies.
In addition to embracing these advances, a more profound transformation is also needed. Instead of merely converting a traditional business to a digital business, forward-thinking insurers are re-imagining the relationship between the insurer and the insured, to create a new digital insurance ecosystem.
The insurance industry is being disrupted by technology start-ups bringing their own platforms, orchestrating ecosystems that bring together products and companies from various sectors and providing customers with solutions for daily needs. These new platforms have changed the way insurance is delivered an dare forcing insurers to embrace a similar way of thinking. This calls for the need of an all-encompassing digital platform of, by and for insurers.
How can insurers seize this opportunity to build a new digital value chain so they can remain relevant? What kind of app, platform or ecosystem is needed in the digital transformation of insurers? Here are three things about a digital insurance ecosystem, worth keeping in mind during the app development phase:
Normally, a customer thinks of insurance only in the wake of a purchase or life event — buying a home or vehicle, battling injuries or illnesses, or needing to make a claim. In recent years, insurers have attempted to fundamentally shift the purview of insurance from mitigating the impacts of unfortunate events to preventing these events from occurring. In this regard, ‘Connected Insurance’ envisages a new role for the insurer as a regular and supportive participant in the customer’s daily life, thinking about the customer’s lifestyle as opposed to risk profile. Connected Insurance could include:
- Connected Health: Personal medical monitoring devices allow customers to track health information (weight and BMI, vitals, exercise activity, etc.). These devices sync to an app, through which the insurer could transfer data to a medical practitioner for monitoring.
- Connected Home: Networked IoT devices allow an insurer to provide round-the-clock — support at homes (remote detection of problems such as leaks, shorts or floods, arranging repair appointments, senior citizen monitoring, etc.).
- Connected Car: A connected car enables the insurer to identify the driver, track behavioural driving patterns, and reward positive driving habits. Insurers can collate service providers or gas stations into an ecosystem, at which customers can claim free products or discounted services
Further, quick claims processing is the need of the hour. The longer it takes to settle an insurance claim, the more it costs the insurer and the more it annoys customers. With IoT-enabled Connected Insurance, claims processing will be a faster process.
In Reality:What if the car in question was a connected car where the insurer could proactively identify the accident location, speak to the driver directly and ask questions to assess the extent of damage and facilitate the required aids? Yes, this is possible with a Claims Solution developed on Neutrinos.
Here we speak of the Seamless Omnichannel Customer Journey
Think of a situation where a car has met with an accident on a highway. The driver and the co-passenger have minor injuries. In normal course they would have to make a dozen calls to the insurance agent, the nearest hospital for first aid/ambulance, fire department in case of fire, towing services if the vehicle has been damaged and so on.
Indeed, everything is about the customer today. Providing a seamless journey for customers is imperative. For this, a cutting-edge technology that recognizes customer intent, enables precise knowledge delivery, and caters to customer enquiries and complaints across multiple channels is needed. An app development platform like Neutrinos offers insurers a self-service customer portal solution with rich UI experience. With this, customers can access/update their account information, create and track support requests, view all historical cases as well as insurance renewal options. During app development, insurers can also weave in options for product trials, comparisons, signup, support, claims processing, etc.
Technology has transformed and how! Fraud Detection and Risk Management are more robust and efficient today, owing to information from Blockchain, Behavioural Analytics, Data Analytics, Contextual intelligence and the likes. Meanwhile, big data, analytics and other tools can help insurers unlock powerful insights from this information that can be used to better understand customers and provide appropriate links within the connected ecosystem.
Assimilating these ideas during app development will only benefit the insurer as they can engage better with clients and offer flexible and cost-effective solutions. Better risk assessment with advanced context based on customer data and behaviour-based customer segmentation are other advantages.
The future of insurance is neither product nor technology. It requires a shift in mindset — making the customer the priority and delivering daily value as the crux of an ecosystem of trusted providers.As new possibilities emerge, only those insurers that are quick to learn and evolve will stand the test of time and technology!
Creating an application that involves all this and more is not as arduous a task as you think it is. Looking to unleash innovation and accelerate the digital transformation of your presence in the insurance industry? Speak to us and we shall tell you more.
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