If you ask any consumer about their insurance buying or claims settlement experience, you would certainly get to hear about the many challenges they have faced and how, for every other information, they are required to connect with an agent. When everything else can be done through a few clicks on the web, customers tend to be more content with insurers who offer a seamless digital experience. In these times of digitization, any insurer that still pursues the traditional way of doing business may not survive for long.
The Digital Age
Apart from improving the customer experience, the digital innovation also helps the insurance sector in accurately forecasting risks and preventing frauds. The Internet of Things (IoT) has made it possible for insurers to capture millions of data points. By integrating in-house policy administration systems with IoT devices, insurers can collect vital client data to provide better services as well as to offer other products that might cover clients from unforeseen risks.
Take the example of an auto driver who usually drives at the mandated speed, rarely accelerates rapidly and always hits the break gradually. Without a telematics device, an insurer would never be able to differentiate between him and a rash driver. Yet, both pay the same amount of premium as governed by the actuarial practices for drivers in that area. With telematics, insurers can not only get complete data about driving patterns but also receive vital information such as, first notice of loss, vehicle location, parts damaged, in case there’s an accident.