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Digital transformation has dramatically disrupted a number of businesses across horizontal and vertical markets and the insurance industry is no exception. The insurance industry plays a crucial role in defining the economy of a country. It is one of the very few industries that is effectively managing to drive its way towards digitalization. Now, more than ever, insurance companies are in a need to ensure business continuity, balancing customer retention, and customer satisfaction while staying relevant in the current digital age. With the help of advanced technologies such as Artificial Intelligence (AI), Cloud, Big data, analytics, and RPA, the insurance industry is ready to embrace digital transformation in full swing. Here are a few ways in which digital technologies are helping the insurance industry.
Cloud technology
The first step for any industry to go digital is to embrace the cloud. Cloud technology has transformed various industries by improving various businesses and functions and the insurance industry is no different. Cloud computing helps insurers align service levels, products, and customer interactions. With customized cloud solutions, the customers can be offered personalized services and support, and faster claim processes, which can be digitally delivered to customers. Cloud-based solutions are reliable and offer sophisticated functionalities that help the insurance agencies reduce their overhead costs and streamline their business operations. Thus, from underwriting to claims management, virtually communicating with customers to deploying new systems, cloud computing makes sure that the insurance industry functions more efficiently.
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Artificial Intelligence and Machine Learning
The insurance industry has to deal with a lot of paperwork every single day. They need to manage thousands of insurance claims each day and on top of that, they need to keep up with the customer queries to ensure customer satisfaction. With the help of Artificial Intelligence (AI), the insurers can streamline their end-to-end process, from data capture, settlement creation, savage and recovery tracking, to communication management. AI-powered bots can review the claim, verify policy details, and do much more. It also helps agents and executive decision-makers to make the right business decisions. Advanced Machine Learning (ML) algorithms can help insurance companies evaluate risks efficiently. Machine learning tools and algorithms help insurance companies identify patterns or anomalies to detect fraud and risk factors. It also identifies patterns in the interaction between customer and sales agent that help improves sales.
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Big Data and predictive analytics
To stay relevant in the insurance industry, keeping up with consumer behaviors and trends must be an iterative process for insurance companies. The insurance industry relies heavily on data to perform its functions effectively and data has always been the central pivot upon which the insurance sector works. But the avalanche of customer information and data that insurance companies possess would be useless without analytics that can derive useful insight and value from it. Predictive analytics takes the big data collected by insurers and uses it to precisely identify valuable insight that helps improve business processes. For example, from the data gained from call centers, customer emails, social media, user forums, and user behavior on the insurance website, insurance companies can build a customer profile that helps them understand the customer behavior and future needs of the customer. Thus, Big data enables insurance companies to understand and analyze large volumes of data for usage patterns.
Robotic process automation
Robotic Process Automation (RPA) can simplify the monotonous clerical jobs in the insurance industry which results in reduced customer satisfaction and serious time sinks. One of the main uses of RPA in the insurance industry is claims processing. RPA is employed in the claims processing department where there is much data and documents to process and verify. Traditionally claims processing is manual and lengthy that needs you to collect a vast amount of information from various sources. With the help of RPA, insurers can easily gather data from various sources so that claims can be processed at a much faster pace. AI-powered RPA can not only automate processes but can also make them faster with fewer errors.
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Digital transformation has profoundly revolutionized the insurance industry. We, at Intone, help Insurance companies incorporate and harness the immense power of technology and seize new opportunities in the digital world. Our insurance consulting services are using AI and robotic automation, advanced and predictive analytics, cloud, and other transformative technologies to help P&C insurers and life carriers. We help our clients in the insurance industry create sustainable performance improvement in their core operations, scale their businesses, develop new sources of revenue growth, and successfully embrace ‘The new Digitization”.