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Insurance Companies

Vaishnavi Reddy

February 28, 2021

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The volatile economic conditions and maturing markets give almost very little room for the global insurance industry to maintain profitability and stable growth. They try to reinvent their products, business models, talent capabilities, and operations to cover evolving exposures, maintain legacy systems, regulatory changes, and technological integration. As the insurers continue to remain resilient and transform their existing systems, they are confounded with new challenges of keeping up with demanding customers and rising competition. The entry of InsurTech platforms moved the industry towards a more service-based business model and is forcing the traditional counterparts to rethink their strategies.

Customers are the backbone of every insurer, and the changing times, demand for immediacy, and multifold of options no longer guarantee loyalty. According to a Deloitte study, 62% of the consumers regard the non-insurance consumer product as the most crucial factor when picking an insurer. And 57% of them believe that instant access to knowledgeable and amicable staff is the key to developing loyalty. As 45% of the insurers already believe that building engaging propositions and efficient feedback mechanisms with existing and new clients despite regulatory and legal obstacles, they are creating a consultative experience that drives up the frequency and the quality of their interactions. There has also been a rising demand in the areas of custom-tailored portfolio creation by providing services around new products and changing scenarios and other personal investment activities.

The insurance industry is now moving away from its roots towards a more predictive and preventive model that foresees and warns the customer of possible losses. They are slowly embedding their products in other offerings such as cyber education, home security solutions, roadside assistance, etc. And it is approximated that almost 25% of the premium volume in the next five years will come from these newer products. Insurers are also having to face plenty of obstacles with these advancements, especially in rules of compliance and capital adequacy requirements. Almost half of the insurers feel cyber, and data regulation is the top challenge in digital transformation, and 95% of them expect an increase in advanced analytics in the next three years.

Internally, the insurance companies’ workflows, intermediary collaborations (external agents), and process are another critical reason for stunted growth projections. The organizational structures do not promote inter-departmental collaboration and hold branched data that doesn’t contain A-Z information on one client/project, which often delays the activities, and unnecessarily involves more personnel. Access to automated reports can help the marketing team monitor KPIs such as quote to policy conversions, policies sold, retentions, and new inquiries and also sort out inefficiencies at every step via detailed time tracking. A McKinsey report states that costs can be cut by 40% by automating 30% of operations.

Lead generation has also become a lot more complicated as customers today wish to research their definitive products such as life insurance, retirement planning, etc. on the website and compare them with a multitude of options in price, service, claims supply chain, payment plans and many more. The transactional histories, service, and claim requests and behavioral patterns can be studied to find under-performing accounts and the ones that can be used for cross-selling and up-sell campaigns. They can also be used as prompts that the sales teams can use to provide much more personalized recommendations via sales calls. A recent study shows that effective pipeline management directly leads to more accelerated revenue growth, and companies that adopted an automated process have recorded an 18% increase in revenue growth than the ones that didn’t. Hence the sales executives should be trained in pathways where all the team members replace their guesswork with discernable processes in every stage that can be tracked and measured to reach a higher number of leads in a shorter span of time and achieve the customer needs before the competitor does.

Tackling insurance fraud in areas such as claims management, sourcing, employee misdemeanor, investment practices, etc. is another substantial issue faced by every insurer. And with higher automation and digitization, the companies look to establish a robust fraud management framework with routine cross-departmental fraud assessments, decreased dependence on third parties, and customer due diligence. Anti-fraud policies should be imbibed in every department with suitable actions laid out to prevent, detect, and quickly respond to any suspicious activity. Incidence response often requires intensive investigation, preservation of evidence in a legally admissible manner, assessment of loss, and notifying respective internal and external authorities with sufficient knowledge transfer. The collection of accurate customer and operational data of all the previous cases will not only benefit underwriting and claims management but also helps a lot in making objective judgments about risks, industry trends, and the values of portfolios and policies.

Subtl can solve most of these challenges faced by the industry at no risk of over automation. Insurers will benefit significantly by increased automation, technological innovation, and digitization by a great deal, but only if all of their stakeholders, data, technical expertise and other valuable business assets are transformed the right way. It is capable of interpreting different kinds of documents and aid in immediate claim reporting, purchases, and renewals. It can be critical in developing preventive models based on claims history and other patterns in each of its products by following up to date regulatory and compliance protocols. SubltBots can automatically collect data based on customer-friendly Q&As, photo uploads, and other requirements and generate instant claim reports for the service executives. It can also help prospective clients with a tailored set of product options, renewal information, and similar policies with dynamic pricing and real-time customization based on their unique needs instead of having them go through lengthy and complex variations. Underwriting, quoting and policy issuance can also be done much quicker and with a single point of contact as the employees can retrieve any information from both external and internal databases almost instantly. Using SubtlAI can help reduce response times, operational costs, and automate process landscapes that enable the companies to increase sales and retention and maintain high profitability while instilling higher accountability, transparency, and security amongst all levels.

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Vaishnavi Reddy

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