Digitalization in the insurance business: impact and solutions

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Digitalization in the insurance business: impact and solutions

Safe Milli
| November 04, 2021 Last Updated 2021-11-05T06:18:56Z
Business areas are currently undergoing a successful digital transformation. The emergence of new technologies makes it easier to complete tasks and also improves efficiency and impacts the way business is conducted. The insurance industry is no exception.

Experts suggest that in 4 years the cost of the insurance market will amount to more than $ 5 trillion. In this regard, failures and errors can lead to invaluable consequences.

Already this year, more than half of insurance companies are significantly increasing their investments in digital technologies that ensure uninterrupted operations.

Digital opportunities

Digital opportunities

Optimization for mobile devices


About 80 percent of insurance clients are looking for all sorts of information on how to cover insurance premiums using smartphones. The main key to the hearts of customers is the fastest and easiest possible use through a mobile device. Already today, companies that use classical methods are losing to those who do not stand still and keep up with the times.

For such companies, there is a risk of losing everything they have, because customers expect service improvements. Statistics show that only about 25% of insurance companies claim that they are dealing with the needs of their clients.
Business partnerships

Business partnerships with advanced technology companies


For a long time, the so-called Insurtech companies appeared on the insurance market, which have a huge amount of the latest technologies in their arsenal. These companies offer their services to help the classic players integrate digital technology into their work. More than 60% of these commercial organizations are already creating new ideas and plans for old-timers. The advantage of such interaction is that your company does not need to independently research how and when to carry out a digital revolution in the company and implement the necessary insurance software development since such companies offer ready-made solutions for the implementation of artificial intelligence, optimization for mobile devices and the use of robots for automation of work processes.

Internet of things


Personal vehicle insurance was upgraded to the next level with IoT technology, which allows insurance companies to automatically gather data about your actual usage. All information is gathered through the sensors of clients' devices and transferred to cloud storage, with the help of which clients receive recalculations for their tariff plans. After the start of the coronavirus infection, car drivers began to use much less personal transport, and thanks to this technology, it was decided to return more than $ 13 billion to customers.

Companies creating smart home devices are actively interacting with insurers. Sensors installed in such houses immediately transmit data and eliminate the problems of various emergencies in the household. Based on this, customers are provided with lower prices for services, and insurance companies can quickly process information.
Using cloud estimations

Using cloud estimations


Classic insurance companies understand that in the 21st century they can no longer process data quickly and efficiently using outdated systems. The use of cloud storage allows the use of artificial intelligence to quickly process large amounts of information.

About 80% of existing insurance organizations accept the fact that in the near future there will be a need to use cloud computing in order not to lose their business.

Conclusion


The classic workflow of insurance companies today cannot ensure that the needs of their clients are met. Wanting to improve your workflows, using digital technology is an integral part.
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