Role of Technology in Insurance
The technological sector is growing at an exponential pace and as a result, it is revolutionizing other financial sectors like the insurance industry. Since the COVID-19 pandemic, the insurance sector, which was traditionally an industry where business happened over in-person meetings, has evolved and moved their entire businesses online. Technology has played an immensely important part in turning the insurance business into an online platform. While there are a lot of steps and documentation involved in an insurance process, insurance companies have made good use of technology to create online stores where customers can buy insurance through just a few simple steps.
How Technology is Evolving the Insurance Industry
The COVID-19 pandemic has created a generation of customers who prefer to buy their goods and services online from the comfort of their homes. Ordering online reduces their risk of catching the deadly virus, without having to step out. The insurance industry has capitalized well on this trend by moving their businesses online seamlessly through technological innovation. Most major insurance companies have developed their own apps where customers can access all their features. Let’s take a look at the various changes that technology has brought to the insurance industry.
- Multiple Choices: Online insurance business has given potential customers an opportunity to look through and compare the various insurance plans offered by different companies while sitting at home. This ensures that customers can look through all possible options and choose the plan that best fulfils their needs. This process saves a lot of time for the customers and enables them to make informed decisions.
- Purchasing an Insurance Plan: Just a few years ago, purchasing an insurance plan was a somewhat complex process that involved a ton of paperwork. However, with the insurance industry moving online, the process of buying insurance has become a swift and hassle-free process for the customers. With the help of AI and image recognition technologies, the process of KYC and document verification has sped up significantly. Today, you can buy an insurance policy online in a matter of minutes by uploading your documents and paying the online fees.
- Insurance Claim and Settlement: Earlier, the insurance claim and settlement involved lengthy and complicated processes with a large amount of paperwork and verification steps. More recently, the insurance claim and settlement process have been simplified. Using an app to file claims for settlement is another way the insurance experience has been streamlined for the customers.
Customers can simply submit their claim request along with all the relevant documents on their insurance provider’s website or insurance app. New innovative technologies have also helped to fast-forward the settlement process. Verification of documents can now be done digitally through image recognition and AI technology, thus vastly improving the speed of insurance settlements, making it highly beneficial for the customers.
- Customer Support: One of the most important aspects of any business is the quality of support they provide to the customers after the sale of a product or service. Technological advancement in the form of online chatbots has also immensely improved the customer service experience. These days, most insurance companies have a 24×7 chatbot on their website, where potential and existing customers can ask questions and get them answered instantly. Many companies also provide 24×7 on-call customer support to help their customers with any queries or problems.
Technological advancement in addition to the COVID-19 restrictions has enabled the insurance industry to evolve into a streamlined online business. Each part of the online insurance process is handled swiftly and customers have a multitude of options and facilities. These changes are a step in the right direction and we can expect the insurance industry to further evolve technologically to improve the user experience in the near future.