Certainly, Covid 19 has accelerated the implementation of several processes in the insurance industry, including digital transformation. Review with us the challenges and trends for 2022!
Insurance Industry Current Challenges
While claims processing and regulatory compliance have always been a major concern of insurers, there are new aspects to take into consideration. These include finding talent and retaining it, as well as investing in and implementing IT systems. As a result, you will drive more key operations in a more advantageous manner.
A complete digital transformation is vital to boost your platforms, manage more processes, and scale your business efficiently.
Repetitive Tasks: Claims Processing and Others
In the first scenario, automation, like a virtual agent, has emerged as a solution to reduce repetitive tasks. Additionally, it provides you with faster information and requested deliveries. This means reallocating resources, especially employees, to put more emphasis on other business activities that need the human touch. But there’s also the challenge of managing hybrid business models that balance automation with a human touch to drive efficiency, enhance IT systems, and lead to customer conversions.
Regulatory Compliance: Data Protection
It’s necessary to improve data trust by modernizing some of the insurance industry processes associated to information collection and use. Customer sensitive information must be protected from various vulnerabilities to guarantee the confidentiality and cybersecurity insurance of the clients. This database should help improve the customer experience by fully understanding large data sets and converting insights into potential products and services.
Talent: Finding and Retention
When talking about hiring talent, there is a need to adopt a flexible approach to dealing with face-to-face and virtuality. According to Owl Labs (2021), 70% of US employees want a hybrid or remote working style after the pandemic is over. In the end, we look to propitiate this general emotion and opportunity for growth to retain talent and meet the increasing challenges of a competitive market.
System Migration: Digitalization
In terms of systems, it is important to point out that, in general, the insurance industry is at an early stage of digitalization. That is to say, legacy technologies are becoming more predominant over more innovative ones; therefore, there’s a need for migration to enhance products and services. By boosting IT systems and digital presence, insurance providers will find more and better ways to close deals with customers while improving their internal management processes.
Insurance Industry Technology Trends for 2022
In the described scenario, we’ll look at trends this year as part of a business model reevaluation to meet the above challenges and provide some guidance. Let’s jump into those tendencies:
- Increasing implementation of data-driven processes with AI for both processes and customer predictions. This can lead to a shift in the insurance industry from simply caring about claims management to starting to give more importance to prevention processes. This can typically be seen in areas related to equipment maintenance before the customer makes a claim.
- Increasing use of IoT devices to better understand customer needs and behavior patterns. This means sharing data and providing real-time assistance to customers. Additionally, it means meeting and exceeding their expectations with insurance deliveries without compromising their information.
- Increasing need for automation with machine learning that not only involves RPA (robotic process automation). But also emerging technologies to predict situations, avoid certain types of claims, and speed up processes such as claims processing and validation. These include chatbots, virtual agents, among others.
How to Tackle Insurance Industry’s Pain Points?
As an initial point, you need to have established what your main focus points for 2022 are. You can then prioritize what of these trends you want to surf. Consequently, you can plan a strategy to transform your business model based on your resources and opportunities.
To have a scalable approach that completely drives your business to tackle the aforementioned insurance industry challenges, we suggest you start by implementing a full technology integration. In other words, a complete digital transformation is needed to boost your platforms and manage more processes. As a result, your business will be more efficient time after time. This can be implemented in stages, so both your system and the team can adapt in the best possible manner.
We can then invest in AI and machine learning to automate certain processes and reduce risks associated to data loss and customer-sensitive data. While it won’t only boost your cybersecurity insurance’s reputation, it can also be an engagement factor. Don’t forget that this will help you to predict scenarios and increase awareness about a customer’s lifestyle. Furthermore, you will offer more customizable insurance packages.
Now, when we refer to other business drivers of the insurance industry such as talent retention, you should keep in mind the following aspects. By implementing these technologies, you can lighten the load of your team, improve your workflow, and reduce human staff need. But if you want talent to be part of your business, you must also offer them growth opportunities.
Having a bigger picture of the insurance industry this year means you need to count on an IT partner to help you meet your business goals! Advancio is ready to be your ally, let’s talk!