We are living in a time where
digital change in service provision is so fast such that standing still means falling apart as a business. The truth is that digital service is quite beneficial in so many ways. From convenience to speedy services, the financial service, which includes insurance, is making efforts to tap into the digital space. According to BCG, the
online insurance marketing has grown six times for the past seven years. Many services and processes are now technologically- based because the digital format now holds many advantages.
Safety
There are increased insurance fraud cases in US today. The most common insurance fraud occurs in form of personation. According to Albuquerque police department, most insurance impersonations occur because people are careless with their insurance documents. Most of them store them store insurance ID in the glove compartment of their cars. This gives potential identity thieves opportunity to steal the cards and use them for fraudulent activities. With increased technology, people can avoid some of these incidences. For instance, most insurance companies nowadays allow their clients to put their proof of insurance on their smartphones through an app. With the technology-forward world, people can now buy insurance premiums directly from the company. This can help reduce fraudulent activities common among insurance agents.
Reduced Costs
In today’s unforgiving economic climate, insurance companies find themselves with numerous operational challenges. To make matters more complicated, consumers are cost-conscious and will avoid premiums that are costly. Luckily, technology is slowly simplifying things for insurers across America and Europe. The digital avenue has made it possible for insurance companies to save on various costs. The good news is that the digital changes are mutually beneficial to the insurance companies and the consumers. The lower operational costs enable the companies to pass the benefits on to consumers in form of cheap policies online.
Under normal conditions, the brokerage
coverage for your vehicle cannot exceed 20% of the total premium. The premium difference between offline and online is at 40%. This means that you get to save a lot of money if you buy your insurance coverage online.
Convenience
Earlier on, the insurance industry believed that the products were only provided through conventional customer-agent sale relations. Until now, the industry was firmly rooted in the ideology that this is what the customers wanted. However, things have changed, especially among the millennials. In China, customers have started to
by-pass agents at a high rate. Consumers now demand faster and transparent insurance deals at the convenience of their homes or offices.
The digital format provides insurance companies with an opportunity to enhance customer convenience. An evident step taken in the industry towards this direction is the development of insurance repositories that help in
organizing large quantities of data in electronic format. There are numerous benefits of holding insurance policies in electronic form. There is no physical damage or loss of information. It is also possible to manage several policies using a single platform, which is convenient and cheap.
After Sale Services
Most customers complain a lot when it comes to after-sale services in insurance. They feel like most companies forget about them once they buy the policies. However, most companies have started to adjust. Most of them now have social media sites such as Facebook and Twitter to enable them receive complaints and act on them accordingly. This has enabled companies to attend to customer issues easily and quickly. Some insurers have mobile applications through which consumers can table their grievances, buy new products or renew old ones. One can also access and download income tax documents for any year since they bought the policy using such apps.
Faster Services
Digital innovations in the insurance industry have made many things possible. For instance, some insurance companies provide a system that enables their customers to process their health insurance claims on cloud-based platforms. Such technologies facilitate faster services in the company since the exchange of data only happens between the hospital and insurance company. There is no need to involve the agents. With such technologies, we expect the cashless transactions to take three to four hours and reimbursement claims to take six to eight weeks.
The digital platform holds value for both insurer and the customer. It makes the entire insurance industry
much smoother.
