How Digital Transformation is Changing the Insurance Industry

Digital transformation has occurred across the globe in manufacturing and industrial industries. Insurance companies have been a little behind the times when it comes to technological advances, but the companies that want to be competitive in today’s market have started implementing digital business practices.

Wikipedia defines a digital transformation as a business that adopts the use of digital technology. This shift will help streamline the tasks that insurance agents have had to do by hand for years. The main benefits are like the ones that other businesses implementing digital technologies have, but slightly modified to work for specific insurance needs.

Chat

Consumers in today’s technological savvy world prefer to conduct all their business from the comforts of their home. This includes talking to agents. Even though chat bots, found on most websites, are AI driven automated programs designed to answer your basic questions, it is still possible to connect with a live person. It might still mean a phone call, but many agents are willing to communicate through email or text. 

Scalability

At one time, and even today at some locations, insurance policies have been written by filling out papers while sitting with an insurance salesperson. The process was long and drawn out. The better the salespeople were, the more benefits that a customer would get. Now, when using online platforms to apply and manage policies, such as Australian life insurance or home protection, it is set up to make it simple for you. It has also allowed the agents to scale back the information that they need to write a policy. Less information is needed, less time is spent, and more accurate contracts are written due to more personalized and ‘to the point’ application processes.

Automate Claims

A substantial change to the insurance industry comes with the ability to use digital technology to make the claims process faster and more simplified. The process for you will be automated if you ever need to file one. This means that you file for it online with a computer or mobile device. Some basic questions may be asked, and pictures may be uploaded, if applicable. The point is that you will not have to stay on hold for hours waiting to talk to an agent, and you will not have to wait forever for the claim to be approved. Unless more detailed information is needed, the claim can be typed in, analyzed by the program, and a decision made within days.

Personalization

This was touched on above, but the importance of this aspect of digital systems can not be over stressed. To put it in a simpler way, compare yourself to someone that lives in your area. Are you exactly the same? Even if you are twins with the person you choose, differences can be found. No two people are exactly alike. Policies should not be the same either. Advanced digital programs allow this to happen, while keeping the industry fast and dependable.

Digital technology, according to the Australian Department of Education, includes any type of electronic device, resource, tool, or system that can generate, process, or store data. Insurance companies that want to be profitable have started to embrace the advancements of technology, and how it can be used in their industry. 

Soon, all business transactions will have the option, or requirement, to be conducted online in the virtual world of the internet. There may always be an option to have in person appointments and live agents answering phones, but the younger generations coming up always have mobile devices on hand. When they need something, the internet becomes their best friend. Companies that adapt will continue to thrive.

How to Evolve in the World of Digital Transformation and Coming Trends

No matter what industry you might be in, there is a great chance it will be disrupted and changed as a result of the internet and how technology is changing nearly every aspect of life and business.

With this in mind, it’s always important to stay up to date on the latest trends and talking points when it comes to digital transformation and any given industry.

A great way to stay ahead of the curve, is to make sure you are continually reading up on the latest content added to the blog, as new posts are added daily. Through the use of this expert content and industry news, you will likely stay ahead of the competition, while always knowing what’s next before it actually happens.