Insurance industry digitization: A trend employers need to consider
Insurance industry digitization is changing the ways business gets done. The insurance industry is in the midst of a massive shift, driven by new consumers, real-time data-driven decision making and artificial intelligence.
How will you, as an employer, adjust and—most importantly—capitalize on these new realities? How will you prepare your companies and your teams to meet new and mostly unheard of challenges surrounding insurance industry digitization?
Personalized Products and Services
The personalization of goods and services is what currently attracts many consumers in highly saturated markets. Most folks don’t want “what’s good for one is what’s good for all” offerings. They want what they want—carefully designed options that meet their exact needs, without wasting time or money.
A massive portion of the premiums collected by insurance companies is spent on the distribution of those services. Many insurance entities will be switching to digital models, removing the intermediaries and shortening the insurance value chain substantially.
The life-line to the insurer will be the app–data collecting interfaces that will provide that real time data and a detailed understanding of consumer behaviors, more accurate risk assessment models and premiums that match and are relevant to customer activities.
Finding professionals and building teams that can integrate these tools into your service offerings, making them a standard part of your professional practice, will promote customer loyalty and make any and all insurance entities more profitable by delivering fast and customizable coverage.
Insurtech isn’t just one thing or one piece of technology. It is a real and tangible manifestation of insurance industry digitization.
This connected collection of devices and applications, including GPS tracking software in phones and smart watches, uses the IoT (internet of things) to gather input and then use that data to create more finely tuned risk grouping. This allows providers to price their products more competitively.
Traditional insurers should consider developing a culture that is more tech inclusive, so whether they want to develop their own InsurTech offerings or develop partnerships with InsureTech firms, they will have access to those revenue streams offered by these personalized and innovative digitized solutions—especially in auto, home and cyber insurance.
AI and Insurance Industry Digitization
The collection and securing of data is fast becoming a problem that cannot be effectively handled by human hands alone.
Many worry about AI eliminating jobs, but considering the aforementioned aspects of personalized products and InsureTech, the sheer amount of data insurance companies will be collecting and using to customize their policies and coverage will be a mountain that technology can help them climb.
Automation of certain processes drastically increases the efficiency of claims management, and AI-enhanced cybersecurity keeps user data protected against hackers and increasingly sophisticated cyber attacks. Insurance industry digitization demands a fast and effective response to customer needs and threats from outside your networks.
At The James Allen Companies, we want our partners to remain competitive in this evolving landscape. We want you to continue to provide exceptional services to your customers, but also to develop teams that take advantage of the latest tools and technologies.