The health alert situation has posed a series of challenges for the insurance the sector, making it challenging to maintain operational continuity.
Due to the confinement decreed due to the state of alarm, many companies had to
adapt to new business models. Insurance is a complex business that includes multiple processes such as managing existing policies, remodeling and selling new products, answering queries, managing claims processing tasks, etc. Adding to this complexity are the external networks they deal with - brokers, agents, agencies, etc.As a general rule, insurance cover is required when an unforeseen event or problem arises, be it a leak in the home, a hospital admission, or a family member's death. Hence, good customer service in this sector is essential because complex situations must be handled in an agile and productive way.
It has become difficult for insurers to keep operations uninterrupted, and we know before the pandemic, things were different. However, the sudden shutdown of daily human activities have allowed many companies, which were already immersed in digitization processes, to advance in this transformation and achieve continuity in a few weeks of confinement, which would take them several years for many others.
If we look toward the future, the situation may result in a series of technological trends taking hold in the sector. In masvoz, they have analyzed the services that companies in the insurance sector have demanded during this period and have carried out an analysis of the 5 trends that have strengthened their development in this crisis to facilitate the use of these services:
1) Digitalization
In a traditionally established sector such as insurance, the idea of 100% digital companies or apps was a challenge. These presented a more agile methodology that allows them to react better to the market's movement and work more efficiently. The second challenge is brought in the work model by confinement, with telework predominant.
Also Read: The Digital World Propels Insurance Companies to Re-Evaluate Their Operations!
However, insurers have once again demonstrated their resilience and adaptation by seeking new digital solutions, such as remote monitoring tools that, according to data from the Entelgy consulting, increased by 300% during confinement weeks.
2) Big data and advanced analytics
The use of this technology to identify, quantify, and prioritize risks is on the rise. The customization of policies based on user data will allow us to offer better services and even anticipate previously unforeseen risks. Personalization will reach its maximum expression, and insurance will be applied tailored to each user so that no two insurance will be the same.
3) Blockchain
The large volumes of information that insurers collect may be managed through a “chain of blocks,” allowing the transfer of data between companies or between company and client to maintain the security, since very personal data is generally treated, such as medical history. Additionally, many insurance providers have implemented this technology to reduce the cost of verification, enforcement, and fraud prevention. In fact, according to a report by Marketsand Markets, this technology is likely to make around $ 1.3 billion in 2023 in the insurance market.
4) New risks to cover
There is already insurance to cover risks related to cybersecurity, a policy that a few years ago did not even exist. And it is that digitization does not bring only innovation in the processes, but also its products. The insurers' efforts will focus on aspects such as data protection, compliance with regulatory frameworks, and reputation risk management.
5) The cloud is here to stay
In addition to safeguarding data in a safe and accessible environment at all times, the cloud has more applications in insurance. This characteristic flexibility has allowed many companies to continue attending to their policyholders' incidents from home, thanks to contact centers in the cloud and virtual switchboards that helped improve their customer service quality. This communication technology in the cloud offers more possibilities than traditional telephony so that both agents and clients are more satisfied with the result of the consultation.
Insurtech or 100% digital insurers are already a reality and are showing maturity in a business in which traditional companies are adapting to compete and innovate in equal measure.
So now, at the time of the fight against the coronavirus influenced the insurance industry to a greater degree and at a faster pace than any of the original trends predicted. At this time, innovation and adaptability remain at the forefront of business continuity discussions. Companies with a robust digital framework, flexible workforce and a willingness to rebuild their strategies will continue to succeed through this challenging period.
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