Digital Trends in Insurance Industry to Watch for 2021
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As the past year has brought unexpected challenges to businesses and consumers around the globe, it is the right time to examine the digital trends and technologies that are transforming the insurance industry. In this digital era of life, insurance agencies of all sizes and shapes are looking for innovative and evergreen technologies and tech solutions. They look for solutions and tools that are easy to scale and update according to the changing industry demands and consumer needs to stay on top of competitors.

Insurance agencies looking for a competitive advantage should consider the following digital trends in the insurance industry to outpace their competitors.

Remote Access Environment

During the early days of the Coronavirus pandemic, businesses around the world switched to full or partial remote working. Once sited with remote technologies and virtual processes, many of the companies discovered several surprising advantages from the new remote work environment like reduced operational costs and enhanced productivity.

Whether they offer life insurance or auto policies, insurers will likely be marked by more online meetings, web-based vents, and enhanced online customer services. Strategic implementation of advanced digital solutions like automation, mobile insurance solutions, network security software, and project management solutions, will help insurance agencies handle a variety of working conditions both remote and in-office.

Contactless Payments

Social distancing due to the recent COVID-19 pandemic has made digital payments essential for carrying business transactions both online and offline. Most insurance providers already offered their customers online payment options like credit card or digital payment methods like PayPal. But online outbound payments had not yet been adopted by insurance companies. According to experts, outbound digital payments will become a main focal point for insurance agencies to make digital disbursements. As more companies offer contactless payment options, modern consumers will expect and connect with insurers that offer modern digital payment solutions.

Virtual Customer Experience

In the past year, people shifted their personal communication and interactions over digital channels like social media sites and instant messaging apps to maintain healthy social distance. Not just because of COVID-19, but people also use digital platforms to communicate with each other as it offers greater convenience and enhanced communication features. That's why businesses across the globe are also investing to build and maintain customer relationships online. The insurance industry is no exception. Insurance providers are also adopting the latest communication methods and channels to provide their customers with an excellent virtual experience.

High responsive web design, social media profiles, chatbots, and mobile apps are some of the best ways to offer a greater customer experience online. In this way, insurance companies can respond to customer queries in real time even if their employees are working from home or in the office. The adoption of online communication methods has added greater convenience to remote insurance dealings.

Robotic Process Automation (RPA)

Robotic process automation or RPA is one of the current digital trends in the insurance industry. Insurance agencies usually use RPA to put repetitive or rule-based operations and tasks on autopilot. Conversational process automation is the main area insurance companies use RPA to automate their processes efficiently. For this purpose, they use interactive voice response solutions, virtual assistants, and chatbots to handle customer communication and insurance transactions online. All these digital tools allow customers to ask basic insurance questions and queries 24/7 by using their mobile devices. On another hand, insurers are better able to respond to customer queries and questions in real time without making them wait for hours.

There are many other technologies that insurers can use to put their processes like online insurance quotes, fraud detection, payment handling, and generating bills on autopilot. Robotic process automation not only increases operational efficiency but also builds trust and credibility by providing customers with a personalized experience.

Telematics

Telematics capabilities are commonly used by auto insurance providers. This smart technology works as wearable technology for vehicles. Insurance providers equip customer vehicles with monitoring technologies to analyze different elements like driving habits, locations, accidents, and speed, etc. All the data obtained by telematics help insurers to determine the best auto policy premium possible. Furthermore, telematics also offers several benefits to both insurance companies and customers like improved driving habits, lower claim costs, better premium rates, and strong relationships between insurer and insured.

Final Words

The latest digital technologies are reshaping the insurance industry at a rapid pace. Strategic implementation of the right tech tools and solutions helps insurance agencies focus more on customer experience, offer better premium rates and boost operational efficiencies. However, an insurance provider must invest in the right digital tools and solutions that fit to their individual needs and requirements. Consulting with industry experts is also a great idea to assess your insurance digital needs and implement the right technologies into business operation for greater business growth and to build a loyal customer base.

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