The traditional insurance industry is ripe for disruption by InsurTech. Many insurance giants and innovative startups are seeing this disruption as an opportunity to step up their game in terms of product offerings and excellent customer service. In this series of posts, we will look at the key trends in InsurTech and how AI is set to disrupt the insurance industry.
What is InsurTech?
InsurTech refers to the use of the latest technologies that drive innovation in the insurance industry, help improve customer experience, simplify processes in the business and do more. The various areas of the insurance industry that get benefitted from InsurTech include: customer relationship management, customer onboarding, claims management, data analytics and management reporting, behaviour based insurance, insurance contracts management and provision of new services etc.
The need for InsurTech
Today, insurance companies operate in an advanced and more complex environment, where they are seeking innovative ways to deliver next-generation customer experience through their products/services and redefine the entire customer journey. These companies are developing new products/services to meet the changing needs of their customer base. They started responding to the challenges of digital disruption seen in the industry and seize every single opportunity to deliver delightful customer experiences.
According to PwC’s 20th CEO Survey of 1,379 CEOs, there is an increase from 22% to 45% responses, where insurance CEOs stated they were extremely concerned about changing customer behaviors. To keep pace, insurance CEOs recognise that customer intelligence, along with the quality of the client insights and interactions that underpin it, is their most valuable asset and surest foundation for profitability and growth.
Insurers recognized the need to adopt new customer-centric business models driven by Artificial Intelligence, to assess consumer attitude, measure change in the customer behaviour patterns, analyze their brand performance, automate business processes and identify the effectiveness of marketing expenditures across the customer journey – from initial consideration, closure, purchase to post-purchase.
Leveraging Artificial Intelligence in InsurTech is just the beginning! As the emerging technologies are disrupting the insurance industry, there are many opportunities as well as big challenges ahead for insurers. Insurance companies need to carefully consider the areas favoured by InsurTech for their business growth.
