It won’t be wrong to say that we are living in the digital era. Technology is leaving its mark on almost every industry and the insurance sector is one of them.
The wave of digital transformation has changed the way the P&C insurance industry works. It has replaced manual work and outdated software and has brought more advanced tools and automation into the picture. It has accelerated sales, helped the insurance companies in providing better customer services, and boosted their revenues.
In this article, we will explore how the P&C insurance digital transformation has impacted the industry and what it means for the future. Read on!
1. Better services for policyholders
Modern-day customers want prompt services and quick solutions to their issues. They didn’t prefer waiting and in case, any company cannot fulfill their needs, they don’t hesitate to move to another one.
Digital transformation has enabled P&C insurance companies in streamlining all of their information and data in one place. It allows the customers to access all the information quickly and without any hassle. Customers can now get premium quotes, do loss assessments, and analyze different policies with just a few taps on their screen.
In addition, P&C insurance companies have also started leveraging chatbots to offer instant answers to their customers’ questions. It not only saves the time of their employees but also ensures that policyholders can have their questions answered anytime, anywhere.
2. Enhanced scalability
Another positive impact of P&C insurance’s digital transformation has been the improvement in scalability. With the help of self-service digital platforms, insurance companies can now handle more customers without over-burdening their employees.
The self-service digital platforms or broker platforms allow insurance agents to handle more claims, see the real-time status of the claims, and track their next steps. It is especially useful in cases of disaster when agents have a massive number of claims to handle in a very short time period.
3. Digital transformation has also enabled insurance companies to provide personalized services
The best way to impress policyholders and retain them for a long time is by providing them with personalized services. Customers love it when companies pay attention to them and take the extra effort to provide them with tailor-made products and services.
With the help of advanced technology and telematics, P&C insurance companies can now monitor the policyholder’s behavior and draw meaningful conclusions. It will help them in customizing their premiums, offer better discounts, and send more targeted offers.
Another benefit of this is that lucrative discounts also encourage the policyholders in adopting a healthier lifestyle and get rid of harmful habits. This, in turn, will ultimately reduce the payouts for the insurance companies and help them save a significant amount.
4. More customer-friendly digital channels
Gone are the days when insurance companies used physical channels to sell insurance policies. Today, digital channels have taken the front seat. As customers become more and more comfortable doing things online, P&C insurance companies have also embraced various digital channels to conduct business and improve customer interactions.
Insurers are now offering advanced tools like virtual assistants, chatbots, and voice-based customer service solutions. All of this improves communication with the policyholders and makes them feel at ease.
Further, companies are finding ways to take more of the traditional processes online. For example, processes like medical underwriting or signature are being replaced by face-recognition technologies and e-signatures. So, customers no longer need to visit the insurance company’s office to get something done. They can comfortably do it by sitting on their living room couch!
5. It has also reduced the chances of fraud
When it comes to the P&C insurance sector, frauds are nothing new or surprising. Many individuals leverage illegal ways to get the insurance payout. But not anymore! Thanks to Artificial Intelligence and IoT devices, the chances of fraud have reduced significantly.
Smart home and vehicle devices enable the P&C insurance companies in monitoring the activity of policyholders and avoid any trickery.
When an accident happens and a claim is filed, the insurance company conducts a thorough investigation. It analyzes these smart devices to understand the activities of the policyholders. In case they find anything dubious, they can refuse the payout or ask for further investigation of the claim.
In addition to this, insurance companies are also using AI-based software to identify and filter false claims.
So these were the top five ways in which digital transformation has changed the present-day P&C insurance industry. Overall, the effects of the digital revolution have been positive and extraordinary. It has helped the industry get rid of lethargic attitudes and adopt a faster way of serving their customers.
By automating a lot of their menial tasks, insurance agents are now able to focus on more important jobs like selling more policies and serving more customers. It has also increased their productivity and improved their performance.
All in all, we can say that the future of the P&C insurance sector looks bright and promising!