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March 15, 2017
Digital disruption refers to the process in which new technologies come into market and as the change occurs, the process lowers the costs/effectiveness of older technologies. As these new technologies take hold, companies migrate toward new strategies and services, or in other words, create a digital transformation.
Netflix is a good example of digital transformation. They introduced a new innovative way for customers to access movies and TV shows. In doing so, they changed how the market works and forced other companies to follow suit. This same effect is happening to insurance companies every year. Those companies that do not hop on board are being left behind.
Insurers are using digital technology to transform their processes. By digitizing customer practices insurance companies are reporting a 15% to 20% reduction in personnel. In the next 3 to 5 years it is expected that more insurance firms will enhance the customer’s online experience.
The goal here is to:
a) Learn more about customer’s online interactions
b) Create a once-and-done approach, where the customer can make their selections and be done
c) Reduce the claims process times by 40% to 60%
Managed service providers will come into play to help optimize the underwriting processes for insurance companies. New tools and resources will allow cloud providers to keep up with the demands of the insurance industry.
Big Data analytics is the accumulation of external data, which is applied to a known dataset. In this case insurance companies find data about their insured and use it to create forecasts for rates and risks. Insurance companies are upping their game and are planning on acquiring at least twice the amount of data to apply to their analytics. This new data will be helpful in gaining more information about the trends of customers’ habits. That information can be used to help create a better customer experience, and to create a better cross-selling opportunity for the insurance company.
Defining a New Generation
Young customers of today do not want to talk to insurance agents. They want to hop online, find what they want, and be done. This is a business model more insurance companies are heading toward. The need for a face-to-face meeting is becoming a lost art. However, the need to have someone available immediately on the phone is becoming more important.
Most people get car insurance only because they have to, and they do not want to go through a drawn out process; they just want to make the purchase and pay their bill each month. Many first time home buyers just take whatever insurance that is recommended to them. This new generation wants the peace of mind without the hassles. This means upgrading infrastructures to meet the demands of the fast-paced purchasers of today.
Managed service providers have the ability to keep up with the insurance needs of today. Their rapid expansion of services meet the needs of the largest insurance firms and can help keep them connected to customers all around the world. Request a quote and see how TOSS C3 can help your insurance company today.
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