The insurance industry is no stranger to change. Over the years, insurance has experienced technological advancements that have helped businesses improve efficiency, customer experience, and profitability. However, the pace of change has accelerated in recent years, making the need to adapt stronger than ever. In this article, we will explore the future of insurance and how the industry will continue to evolve in the coming years.
1. External pressure from InsurTech startups accelerate digital transformation
The rise of InsurTech startups has put pressure on traditional insurance companies to digitize their processes. InsurTech companies are disrupting the industry with their innovative business models, technology-driven solutions, and customer-centric approach. As a result, insurance companies that rely on traditional processes are finding it increasingly challenging to keep up with the competition.
These InsurTechtools exist to help insurance companies digitize their customer-facing processes, such as claims processing and new policy creation. These processes are often document-heavy, making them ideal for digitization. Building awareness around the available InsurTech can help insurance businesses to be successful in 2023.
2. Satisfying customer expectations will be driven by the digital transformation
Successful insurance businesses all have one thing in common: they delight the individual customer. Customers expect a pain-free and personalized experience, so you need to deliver on that. The rise of digital transformation has made it easier to meet these expectations.
If you have dissatisfied customers in any way, studying your processes that directly impact them like claims and underwriting can be key. Are you getting payment to your policyholders quickly enough? Do they have to follow up constantly to see where you are in the process?
New technology can level up the customer experience by automating those time-consuming processes so you can get back to your customers’ requests faster. Satisfying—or even exceeding customer expectations can set you apart from your competitors, and is completely possible by embracing the digital transformation.
3. Successful insurance businesses will finish the move to digital documents for the entire policy lifecycle
The use of digital documents has become increasingly prevalent in the insurance industry. However, many companies still rely on paper-based processes for elements of the policy lifecycle, such as printing, signing, and scanning documents. Some businesses even go so far as having a simple PDF and requiring their policyholder to print it out, sign it, and fax it back to them.
This process is time-consuming and prone to errors, making it less efficient than digital processes. And frankly, customers don’t want to deal with slow manual processes like that.
Insurance companies need to move documents out of their messaging platform, email, and texts and into a secure customer portal. The use of smart digital documents within a smart digital platform can improve efficiency by reducing the need for printing and signing documents. Do more than just digitize your documents—digitally transform them so they can work for you.
4. Data analytics will extend to more than just actuarial processes
Data analytics is a critical part of any business. Within the insurance industry, the focus of data analytics has traditionally been on actuarial processes. However, that’s not the only use for it. With the rise of digital transformation, companies can lean on data analytics to improve other processes, such as claims processing and customer service.
By transforming documents into actionable and usable data, insurance companies can gain insights into their processes and identify areas for improvement, like where claims regularly get held up. Insurance businesses can ensure better data quality and governance with the proper insurance software, which leads to accurate and reliable data.
5. Adoption of process and workflow automation
Manual processes plague the insurance industry. From routing and collecting documents to getting the correct approvals and signatures to complete a claim or underwriting. Process and workflow automation can help to improve efficiency, reduce errors, and save time. By automating document storage, maintenance, and access controls, companies can save time and improve overall efficiency.
Insurance companies should look for solutions that automate processes from start to finish. Embracing automation is critical for insurance businesses that want to stand out from the competition in 2023.
6. Insurers will adopt AI and machine learning to help process claims faster and identify potential fraud
Insurers are also adopting AI and machine learning to improve their efficiency and accuracy in processing claims and identifying potential fraud. AI and machine learning can process large amounts of data to greatly reduce instances of human error, and they can also automate many of the manual processes involved in claims processing.
For example, AI can be used to automatically categorize and prioritize claims. It can also automatically extract data from documents, such as medical records and police reports, to help determine the validity of a claim and to make insurance processes more productive and accurate.
7. Cloud-based solutions will become the standard for insurers to store and manage all documents
Cloud-based solutions have become more standard in recent years as opposed to on-premise solutions which are more unwieldy. They provide better document access to businesses that operate from multiple locations, including those with hybrid workforces.
Many insurance professionals are weary about switching to fully cloud-based document storage because of the security risks associated with it. While security is a valid concern and something that insurance businesses should keep at top of mind, the right solution will be able to guarantee your documents are protected. In many instances, cloud-based solutions can protect your documents better than on-premise solutions with continuous updates, multiple backups, and improvements to the software.
Cloud-based solutions are key to implementing work flexibility within the insurance industry.
8. Insurance businesses will invest in mobile-friendly solutions
Insurance businesses are investing in mobile-friendly solutions to meet customer demands for accessibility and convenience. With the rise of smartphones and tablets, customers expect to be able to access anything in an instant, and their insurance policies are no exception.
Not only is mobile accessibility important for customer satisfaction, it is also essential for attracting younger customers. They expect companies to offer mobile-friendly solutions for all aspects of their lives.
Insurers can successfully respond to this trend by giving their customers instant access to documents and an easy way to upload and sign them. But its benefits don’t stop there. Insurance employees can also use mobile friendly solutions to work on the go as needed.
9. The last holdouts will implement electronic signatures to securely and efficiently process claims
Insurers are adopting electronic signatures to securely and efficiently process claims. Although they have grown in popularity throughout recent years, it’s time for everyone to make the switch.
This not only improves the customer experience, but it also saves time and reduces costs for insurers. Electronic signatures can also improve the security of sensitive documents, as they can be tracked and monitored for unauthorized access.
10. Regulatory changes will fuel adoption of document management technologies
Regulatory changes are also driving the adoption of document management technologies in the insurance industry. With more stringent requirements for data security and privacy being imposed, insurers must invest in technology that can help them comply with these regulations.
Major compliance risks include data breaches, cyber attacks, and unauthorized access to sensitive information. Insurers that don’t prioritize every effort to maintain compliance can greatly damage their reputation, which will impact customers and their decision to remain a customer or not. Document management is key to maintaining compliance (and your reputation) in 2023.
Conclusion
It’s your year. It’s time to accelerate insurance digital transformation journey with initiatives that can positively impact your customers and improve the quality of your employees’ work. Use Revver, an advanced document management system that automates your document-dependent work, to drive the digital transformation in a way that will impact your business for years to come.
