- Traditional Way
- Person connects and interacts with insurance agents to understand the product and coverages as per their needs
Chapter 09 Technology Trends in Insurance
Insurance Quotient Boosters
- IT has reduced the time, paperwork and effort required to meet customer needs.
- Information Technology has also brought about a change in the product promotion, buying and customer support.
- The end customer, business drivers/enablers, underwriters and risk managers are also empowered in various ways.
Along with every sector that has benefitted from the digital revolution, the insurance sector has seen development due to exponential growth in technology.
Initially, the insurance companies used physical documents and files which severely limited their speed, capacity and ability to grow. However, developments in information technology have helped insurance companies overcome these limitations. Now, they use information technology to store, process, manage policy data and handle the policy holders’ service requests.
Why is IT important in managing insurance business?
- To dramatically reduce the amount of paperwork dealing with policies to effectively meet the needs of customers in much less time than traditionally expected
- To empower the business drivers/ enablers (like sales person, agents, brokers) with updated product information, real-time customer information to enable serve better
- To empower end customer by providing access to his insurance portfolio on portal, mobile devices and a host of self service features
- Help Underwriters and Risk Managers to provide quick quotes, approvals for policy issuance, endorsements and improve/ come up with new products
Let’s understand the different stages in the Policy Issuance Life Cycle.
How has IT affected various operations?
Development in IT has affected the insurance sector in various ways. Let’s take a look at how the different activities under the sector have seen a shift in operations.
Product Promotion
- New Way (Using IT)
- Insurance companies use the internet, website, social media platforms, mobile applications to provide information about their various product offerings
- Helps insurance companies in educating, promoting and advertising its products to a large number of customers much faster than before
- User can now not only use the web channel to know more about the product and its prices, they can also compare product coverages and premium amount with other insurance companies
Buying
- Traditional Way
- Person willing to buy insurance provides the required information, documents, premium cheque to insurance agents, who in turn fills a proposal form and submits it to the insurance company
- Policy is issued by the insurance company once the cheque is cleared
- New Way (Using IT)
- E-commerce, online buying through the web and mobile channel has helped insurance companies in issuing the insurance products online
- Users can make online payments
- Insurance companies are using this platform to upsell and cross sell products
Customer Support
Information technology has provided a new channel for after sales service to the customers. During the policy tenure, the customer might have to make changes in the policy document or register a claim. To enable hassle-free services, customers can call the Contact Center powered by the CRM system that is integrated with core policy administration system.
