Business today must be flexible and ready to adapt to changing realities. This primarily means digitalising insurance processes to enhance client communication, update services and improve customer experience.
Let’s look at technologies that can already improve the work of insurers.
1. Digitalisation
Speed matters to today’s younger generation. Any service must offer a mobile app as standard. People are willing to pay for online solutions that handle insurance tasks.
It is convenient to access analytics at any time, find documents in the database, or use an e-signature as required.
‘Our main priority is digitalising service operations. We’ve fully moved claims settlement for property insurance online. The next step is to do the same for other types of insurance. Our client journey is around 30% digital now. The pandemic has made it clear across the business community that digital and platform technologies are essential,’ says Ivan Matveev, First Deputy General Director at Ingosstrakh.
2. Modern technology
Technology advances every year, and clients expect more. Voice assistants and chatbots, which are gaining trust, free clients from unnecessary explanations and let staff focus on more important tasks. This raises agent performance.
How exactly can current technology help?
- fast processing of policies in the system
- claims settlement with policyholders
- communication with all parties in the insurance process
For example, AlfaStrakhovanie reduced the time and cost of policy processing by 15% through digitalisation. Commission payments to agents were also sped up.
Some companies automate business processes themselves, drawing on the experience of retail, telecom and banking.
3. The role of artificial intelligence
McKinsey expects that by 2030, AI could improve insurance process efficiency and reduce operating costs by up to 40%.
‘AI technologies enable more accurate insurance pricing for each client, based on risk analysis and personal needs, and reduce human error and bias,’ says Kristina Tikhonova, President of Microsoft Russia.
In the near future, neural networks will manage the following processes:
- risk assessment and modelling;
- fraud detection;
- underwriting;
- quick access to data;
- complex reporting generation.
To adopt innovation, insurers must modernise data now kept in outdated, isolated systems. Then comes AI training.
McKinsey experts believe AI’s role in business, including insurance, will only grow. Cars, fitness trackers, and home assistants will collect more data. Robotics, cognitive tech and open ecosystems will let companies across industries exchange data in real time. Insurers will be able to offer the right products at the right time and at a competitive price.
A digital platform is the foundation of any technology product. Well-coordinated process automation creates a solid base for long-term growth.
‘Russian companies, especially new firms, can build infrastructure and businesses using modern solutions from the outset – and achieve strong business results,’ says Andrey Chuyko, CEO of RSHB-Life Insurance.