The entire economy is facing technological advancement at a quicker rate than ever before. The insurance industry, specifically, is undergoing notable market shifts. With the emergence of cutting-edge technology and constant changes in consumer preferences, insurers must adapt quickly to stay ahead of the curve.
A big challenge to insurers today is the rapid pace of digitization. Policyholders expect to be able to purchase insurance policies, file claims, and receive real-time updates on the status of their claims online. Insurers need to keep up with these demands or risk losing their policyholders.
In an industry that hasn’t particularly embraced innovation in the past, insurers realize the efficiency and edge they can gain by moving toward a more digital environment – one that better serves policyholders and makes service delivery quicker.
From a survey done by PwC, 41% of consumers said they were likely or more likely to switch insurance providers due to a lack of digital capabilities. Enhanced digital capabilities are a prevalent issue for consumers today, something modern insurers can’t overlook.
Leverage the Power of Data Analytics
Insurers can also keep up in today’s market by taking advantage of the wealth of data available to them. Many generate a massive amount of data on their own, and they can access a wide range of third-party sources.
But having a large amount of data at your fingertips is only valuable if you can find a way to pull actionable insights from it. Modern insurers should invest in a team or software for data analysis to use the information to make informed business decisions.
Through analyzing policyholders’ behavior and preferences, insurers can gain insights about their policyholders and tailor their service and product offerings accordingly. They can also analyze claims data to identify trends and patterns, which can help their claims processing become more efficient.
Prioritize the Policyholder Experience
The policyholder experience is everything, especially in today’s highly competitive market. Policyholders expect personalized service and to have their needs met quickly and efficiently.
Along with the importance of data analysis in today’s market, insurers should pay attention to their policyholders’ needs and preferences and tailor their offerings to meet these unique requirements. This can include personalized pricing, customized policy options, and personalized claims handling.
Take Advantage of Automation & Emerging Technologies
Another trend rapidly taking hold of the insurance industry is automation, alongside emerging technologies like AI and machine learning. Insurers can use such technologies to streamline processes, reduce costs, and improve efficiency, enhancing policyholder satisfaction. This can look like implementing chatbots to simplify claims processing or using automation for underwriting.
Insurance technology spending in the US and UK is expected to grow by over 25% by 2026. Many insurers see the value of increasing investments in programs and technologies that can help them reduce manual processes and automate repetitive tasks. In doing so, they can free up resources to focus on more value-add activities for the changing times, like strategy and business development.
Stay Ahead with Insuresoft
As the insurance marketplace continues to change in unprecedented ways, insurers don’t have to be left in the dark about how to move forward and remain competitive. Those who are aware of ongoing trends and stay proactive will be able to continue building momentum over the coming years.
At Insuresoft, we deeply understand the challenges that insurers face today. That’s why we’ve created an all-in-one solution for the P&C insurance industry that delivers mission-critical processes using cutting-edge technology–Diamond.
Diamond can help insurers discover where they have inefficiencies and enhance the policyholder experience–without losing focus of what’s most important. With Diamond, insurers can let their core offering shine while pursuing sustainable growth with speed and expertise.
Contact us today if you’re ready to transform your operations and keep up with a rapidly changing market.