6 Insurtech Ideas to Enhance Insurance-Related Processes
Insurance technology exists to enhance provider operational efficiencies, cut down on risks and inaccuracies, and make short work of process bloat. That being said, it might be challenging to determine which ideas are best suited for your specific organization as each has its own unique needs and applicable use case.
Today, let’s scratch the surface and reveal several potential avenues you can take on the road to optimal insurance-related processes. We’ll cover everything from AI and automation to harnessing the power of data-driven decision making, doing away with paperwork and migrating to the cloud, and more.
1) Artificial Intelligence and Machine Learning
AI has come a long way in the past year alone, sometimes providing a more informative and streamlined experience than manual labour. That said, there’s always a place for trained professionals, and their wealth of knowledge, which is why integrating AI and automated machine learning algorithms with your more mundane processes can better utilize their individual capabilities. Processing claims automatically, for example, frees up a significant amount of time and resources, as does data collection (which we’ll explore in a bit more detail later on).
2) Predictive Analytics
Insurance operations, in general, are highly dependent on understanding who their clients are, where they’ll be financially in a few months or years, their behaviour in respect to utilizing the property or asset being insured, and other factors when deciding premiums and other policy aspects. Predictive analytics is not a brand-new approach but remains crucial, informing provider processes and helping them make data-driven decisions rather than acting on instinct. Should a customer’s data history indicate a risk of needing to file frequent claims, potentially engaging in fraud or otherwise, you’ll have the transparent and thorough viewpoint to utilize. This aids in reducing the risk element to the provider through sheer knowledge-based planning and anticipating client behaviours, possibly even reducing losses.
3) IoT Innovation
Data is the new oil in any business, and the same applies to insurance operations of any variety. That being said, IoT integration is a critical element that should never be overlooked. Like predictive analytics, it affords a clearer and more informed understanding of trends and user behaviour, but there’s more to it than that. Every user who goes online effectively uses an IoT device, meaning that each develops an ever-growing pool of data that can be consulted when planning process improvements.
Many users opt in to share select information in exchange for the use of a product or service, better rates or overall pricing, and other perks. Of course, IoT devices also include built-in vehicle sensors, alarm systems, thermostats and otherwise, so there are many ways a provider can obtain sufficient insights to help them make the most appropriate and proactive decisions possible.
4) Enhanced Cybersecurity and Blockchain
With most individuals working and interacting with each other virtually, there’s never been a more essential time to ramp up proactive measures. This is especially true as more clients and their needs shift towards a hybrid or permanently remote environment. With the introduction and widespread adoption of cybersecurity measures such as blockchain, claim tracking and making tweaks to terms and conditions can be handled autonomously, streamlining your operations by reducing overhead. The less manual data entry you perform nowadays, the lower the margin is for error or even security risks.
5) Digitization and Cloud Governance
The less paperwork you take care of, again manually, the better. It’s more secure, there’s a drastically reduced risk of making mistakes, and you can then ensure a centralized, encrypted access point for data. In addition, you can avoid losing any crucial data elements that an insurance provider literally cannot afford to misplace. Paired with an effective and adaptive cloud governance strategy that maintains full security and data privacy regulatory compliance, digitization can make life better for you and your clients on a day-to-day basis through reduced process bloat while retaining – or even improving – overall service efficiency and accuracy.
6) Dedicated Mobile App Integration
To ensure as smooth and streamlined a user experience as possible, the interface, tools, ease of navigation, and interactive elements all play a pivotal role. Your insurance-related processes can benefit from a simplified, bloat-free approach that minimizes complexity without stripping users of essential information and service elements. Not only that but app integration can be optimized to make use of other data points not normally so easily attainable, such as client location. With continued development, testing, and refinement based on any established compliance requirements and client feedback, dedicated mobile app integration can help modernize your insurance operations and processes.
These are just some of the ways you can optimize your internal processes for the better, improving both the experience of clients and the capabilities of team members. The more you strategize and refine your approach as a team, the more effective the changes will be.
About the author: Simon Huffen, President of LifeInsuranceCanada.com, one of Canada's leading online life insurance brokers. Simon considers it his duty to reshape the image of insurance salespeople, not as aggressive and commission-driven, but as friendly and grounded. He operates as the company's figurehead, welcoming new clients through email and offering personal consultations over the phone. His charisma and attention to individual cases act as a testament to Life Insurance Canada's rapport with its clients.