Some time ago, in an article about HIPAA regulations and the healthcare industry, I mentioned the complexity of the digitization process. Due to many regulations and extensive internal procedures, opening up to digital transformation is not happening at the same pace as in other industries. This time I decided to direct my attention to the InsurTech software phenomenon, which has revolutionized the insurance industry thanks to its openness to digital technologies.
Table of Contents:
Definition of InsurTech
InsurTech refers to the use of technology in the digital insurance space to streamline operations, customer experience, policy servicing. Using cutting-edge solutions, insurance firms can improve claims processing and impact operational efficiency. InsurTech software is also having an impact on customers themselves by giving them the ability to apply for insurance through an insurance platform, or track new offerings without having to leave their homes.
Benefits of app development for insurance carriers
InsurTech technology isn't only a change from the existing conditions and an opening to digitalization. It also has a range of benefits that come from making offerings more attractive and improving internal processes. Currently, more and more insurance agencies are making inquiries to IT service providers to update legacy systems or develop a custom software application. Supporting of their actions, they offer the following arguments:
Extensive Data Analysis
Insurance platform is an excellent source of data collection by insurance agents. With cloud-based software, accessing customer information and accurate analysis is no challenge at all. Insurance software offers invaluable assistance with reporting. With just a few clicks, reports can be created that interest users based on specific needs.
Service provision via the network
Taking a course toward digital solutions opens up new opportunities for insurance companies. One of them is the provision of services beyond fixed points. This way, customers can easily review offers via mobile devices and choose the best one from among them.
A developed insurance application usually has a personalization option. This is a useful feature that allows users to customize features to their personal needs. Personalization provides users with many options in terms of management system. The ability to customize InsurTech software to suit personal preferences is one of the features that customers look for when choosing insurance platforms.
More profits and cost reduction
By better organizing data in the app, insurance companies can save the necessary information on their platform. As a result, the company will gain more time to focus on key tasks, and thus, among other things, prepare attractive offers for loyal customers. Such a personalized view of the consumer can bring more profits and reduce operating costs at the same time. Automation can also relieve the duties of some employees by giving them space to perform other tasks.
The risk of any kind of fraud in the insurance industry is similar to that in the financial sector. With the support of Artificial Intelligence, any event can be modeled and any kind of irregularity can be caught. Such a solution guarantees that the software application used will protect the owners of the company from risk of fraudulent use of their services.
Modern technologies supporting InsurTech
Simply opening up to the InsurTech model will not suddenly make your company innovative. For that, you need skillfully selected digital technologies. Innovative entrepreneurs are not afraid to take advantage of modern technological discoveries. Therefore, the presence of the following solutions in insurance applications often proves crucial.
Artificial Intelligence (AI)
Artificial intelligence is responsible not only for the abuses mentioned earlier. It also supports all kinds of analysis, data processing and even communication through chatbots and customer assistants. The boon of artificial intelligence is the ability to change company processes from traditional to digital. Particularly when it comes to organizing and collecting documentation, the presence of AI is of undeniable importance.
Internet of Things (IoT)
IoT technologies are being used for InsurTech software to do risk management. In addition, these solutions are used to establish interactions with users so that claims handling can be done more efficiently than in standard cases. Internet of Things is an opportunity for insurance agents to improve their existing services and nurture customer relationships.
A common solution in InsurTech products is Machine Learning. The accumulation of data in such large quantities makes the implementation of such technology into the life of an insurance company a lot of opportunities. Machine Learning can be responsible for handling claims, as well as quotes. Vehicle image processing can be done while estimating repair costs. These types of solutions are not a vision of the distant future. There are companies on the market whose software offers such possibilities.
What challenges does the InsurTech industry face in opening up to software applications?
The insurance industry is governed by its own rules. While they set the rules for many companies, they also generate many challenges. Especially if the opening to digital transformation is included. Here are a few areas that the insurance agencies must consider when developing application software.
Development of data management
Data management for InsurTech software is a very important factor. Especially when data sets are getting larger every year and require more attention from insurance firms due to their complexity. Therefore, the management of records and all data in an insurance application should be properly supervised so that the process grows with the tide of data.
Developing insurance products requires companies to put themselves in the shoes of their customers. The key in this case is to understand their needs and customize the application so that it fully meets the expectations of the audience. At the same time, the application software should be prepared in such a way that the tool offers the right products.
Commitment to customer acquisition
When a company proposes a cloud based solution, it does not immediately mean winning a customer experience. It requires a lot of money and, of course, time. Nevertheless, the commitment to attracting new customers should not be neglected. Customizing content, paying attention to the quality of customer service and developing solutions for new users will help build a community around the company and the credibility of its services.
What can be learned from InsurTech software
InsurTech apps are proof that it is possible to develop industries that require special attention through smart solutions. Insurance companies fit perfectly into this characteristic due to their attention to data and user security. A huge lesson from recent years of InsurTech development is the use of modern technologies and the adaptation of new business models. Developing software for the insurance market is very similar to the method of operation towards FinTech companies. Therefore, it is worth watching the development of both these sectors to be able to select proven solutions for opening up to the digitalization of businesses.
Click on Case Studies and see what solutions Railwaymen has offered to its existing clients. You may find examples of actions that would prove revolutionary for your insurance company.