The future ahead
As technology innovation, higher customer expectations and disruptive technology redefine the marketplace, insurers remain focused on growing top-line sales, bottom-line profitability, addressing challenges, and competing in a dynamic industry.
As digital capabilities, infiltrate nearly every industry, there appears to be a big opportunity for Insurance companies to transform their business model. In fact, unless the industry commits to integrating transformative technologies more rapidly into their operations, Insurance companies could risk not only continued stagnation, but potential leakage to InsurTech innovators as well.
Digitalization of underwriting can also enable online distribution capabilities, allowing insurers to cast their nets wider and embrace younger demographics that often prefer a more virtual experience and taking more informed decision for acceptance of risk. Further, use of innovative tools will not only reduce the turnaround time but will also help in minimizing the underwriting losses since the decision will be based on more accurate data thereby reducing the burn on profitability.
Insurance companies are now looking at claims settlement within 24 hours to 2-4 days and changing the outlook of reviewing turn-around times from the intimation date and requirement completion date. An efficient underwriting function supported by innovative data analytics tools will ensure that any potential cases of fraudulent claims are mitigated at the issuance stage itself. Use of innovative technology like Blockchain, Artificial Intelligence, chatbots etc. will further improve overall customer satisfaction.