How “Insurtech” Technology Can Save Money for Your Insurance Enterprise
In an increasingly competitive industry, insurance agencies are looking for different ways to give themselves a competitive edge. One of the ways insurance agencies are advancing the industry is through Insurtech technology. But what is Insurtech and how does it help insurance providers?
What is “Insurtech” or Insurance Technology?
Insurtech is a broad classification of emerging technologies used in the insurance industry. Any technology that helps insurance providers increase efficiency, reduce errors, provide better coverage, and maximize profitability falls under the Insurtech umbrella. And through a larger lens, insurtech is a subdivision of FinTech (financial technology). Essentially, insurtech is all about streamlining the insurance process using technology.
What Technologies does Insurtech Include?
All of the newly emerging insurance technologies utilize intelligent automation (IA) and robotics process automation (RPA). These advanced technologies have profound impacts on insurance providers. For one, it helps businesses differentiate from their competitors, giving them a competitive edge. These technologies are fundamentally changing the customer experience by making the process faster, more accurate, and more customizable.
Other benefits include:
- Reduced Costs
- Reduced Workloads (leads to less stress and better focus)
- Reduced Risks
- Improved Data Collection/Analysis
- More Detailed Audits
Areas Where Insurtech Helps
IA and RPA are already changing the insurance industry. With these tools, insurance providers can optimize the day-to-day tasks of the business. One example is the creation of automated reports. Other areas already experiencing the benefits of insurtech include the following.
Processing a claim is an integral part of the insurance industry that often involves a lot of menial and tedious tasks. With RPA bots, insurtech can help streamline the entire process, from filing to settlement. Instead of being a long and arduous process, RPA integration can handle standard claims within minutes and can free up workforce demands allowing employees to focus on exceptional cases and other important issues.
Analyzing data is essential for insurance providers to determine risk levels for individuals and businesses. Data also enables insurers to provide custom rates that best suit their clients’ needs. One of the key strengths of IA and RPA bots is that they can quickly sequence large structured and unstructured data sets from both internal and external forces. In turn, these technologies make for faster decision-making and, all around, better coverage for clients.
Processing new client data for people who just bought an insurance policy is incredibly tedious. Fortunately, RPA bots can automatically fill the new information into a centralized system. Bots can also create a personalized customer profile with the data, in turn helping insurance providers make better decisions and maintain a better connection with their clients.
Renewing Premiums and Processing Cancellations
After a period of time, clients must renew their premiums or cancel their claims. RPA allows clients to renew their claims whenever and wherever they want on a centralized processing system, and even cancel their coverage (depending on company policies). Having Insurtech technology simplifies the transfer of sensitive data across various platforms, including Excel, email, CRM, and more.
Maintaining a strong connection with policyholders is essential because a strong connection equates to a longer-lasting partnership. With RPA, insurance providers can leverage machine learning, AI, intelligent Optical Character Recognition (OCR), and advanced analytics to create a better connection with their policyholders. RPA can quickly address customer inquiries, whether it be by email, phone, etc. Likewise, they can update systems and extract data. Automation can also help create better interactions between staff members and policyholders, so they can deliver confirmations quickly to meet all regulatory requirements.
How to Get Started with Insurtech Technology
When it comes to insurtech, what we discussed here is only the tip of the iceberg. Other areas these technologies can assist include: customer service, payroll, sales, invoices, price comparisons, and more. AI and machine learning will continue to advance exponentially in the future, especially in the insurance industry.
Determining the best way to leverage Insurtech technologies for your business is difficult. Fortunately, there are industry leaders available to help businesses integrate these technologies as seamlessly as possible.