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Digital Transformation Challenges in the Insurance Sector: Predictive Strategy And Omnichannel Care

Published on Apr 08, 2020 at 12:42 pm in Bots

Digital transformation is changing all sectors. Telecommunications, healthcare, and financial services industries have seen significant changes as a result of digital transformation, but the insurance industry hasn’t been drawn into the transformational twister until recently.

A study by Celent reports that the digital transformation of the insurance sector is in full swing. Digitalization offers opportunities to improve performance and customer experience. It also continues to compel firms to change. Below are the key survey results-driving digital transformation in insurance:

As a result, the entire industry is re-examining those areas in which weaknesses are evident and exploring innovative opportunities driven by new technologies.

As part of this process, insurers are rediscovering the new reality: the need to provide genuine customer value as a fundamental driver of business success as they transition to digital innovation. Innovative technologies result in new product categories, personalized offerings and real time services.

Insurance companies -as well as intermediaries, suppliers and technical services – must evolve their business processes to maintain their competitiveness.

There are multiple innovations impacting the industry, but the most disruptive in the digital age are four: Artificial Intelligence/chatbots, Internet of Things (IoT), blockchain, and smart contracts.

Although their implementation will be progressive, insurers will be able to use them to monitor in real time traffic or home incidents such as accidents, water leaks or overvoltage damage (IoT); avoid fraud through secure control that prevents duplication (blockchain); and automate smart contract processes.

Methodological change

What really generates this digital transformation is a methodological change for the sector. In one way, traditionally focused on “detecting and repairing” incidents we move on to another based on “predict and prevent.” From “analyzing” the needs of customers, to “anticipating” their demands.

This new methodology also responds to the challenges of the sector. Unlike other industries, customers do not usually interact with the insurance provider, they may hear from insurers once a year about the renewal of their policy. Most of the time they don’t even understand the details of the coverage being provided.

Customers also want to contact the company at any time and through new channels, likeWhatsApp. And they easily switch providers, often for lack of personalized offers or due to aggressive pricing policies.

Using new technologies to solve these challenges through a predictive and preventive strategy is critical. AI and data analytics facilitate the transformation by knowing the preferences of customers and, above all, optimizing the service.


Minimizing the human factor

Insurers have been pioneers in using AI-based tools to automate repetitive processes, optimize risk analysis, and improve customer interactions. Chatbots or digital voice and text assistants can help the customer with simple and complex tasks: from providing a postal address to managing a claim.

Everyone in four interactions with a contact center are handled by a machine with the ability to learn, which will solve 80% of the queries. Insurance companies are minimizing the human factor and optimizing their performance to deliver a better customer experience 24 hours a day.

In addition, chatbots learn from context. They collect relevant information, which they provide to the human agents of the contact center when their intervention is necessary, thus accelerating the resolution times of incidents.

Soon we’ll see how bots leverage information from IoT sensors (such as fitness, in-vehicle, or home monitoring devices) to expand their context information and turn advanced analytics into business value for the insurance sector.

Managing hyper connectivity

Over the past five years, social media and mobile devices have drastically changed the way customers interact with insurers’ contact centers. Calls are losing weight to web chats and messaging apps, like WhatsApp for Business.

In a hyper connected world, customers want to interact with brands at any time, from any device. Managing all channels in a unified way is also key to optimizing customer service.

In what concerns the digital transformation of the insurance sector, Altitude has a large experience in it due to working with customers such as Allianz, Mapfre, Nut, Allianz, RACC, Mutua Madrileña, among others.

They are already committing to digital transformation with our solutions for contact center taking advantage of artificial intelligence, machine learning and analytics to unify, automate and optimize customer service.

Would you like to join them?

Julio Pérez

Julio Pérez

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