Digital transformation is happening swiftly in the current era. It has made life easier, comfortable, and cost-efficient in many ways! And, it has revolutionised the insurance industry as well! A firm digital backbone coupled with a dedicated support team has transformed the business features to accommodate the changing customer expectations and provide the best services. The journey through this evolution is interesting and remarkable. So, let us discuss and understand this digital transformation to see how the insurance industry is getting competent year after year!

Let us understand how the digital backbone transformed the life insurance industry.

How the Digital Backbone Introduced Such Transformations?

Data is central to every development. The insurance industry has made remarkable developments based on the information derived from data to evolve the digital transformations. Here are some of the major contributors to the digital backbone:

1. Automated processes - Purchasing a life insurance scheme involved various stages in the past. You had to visit the nearest branch, submit the application, wait for the verification process and finally start availing the benefits on successful application acceptance. By utilising the best technology to handle data, such as the cloud, insurers have gone way beyond providing the most comfortable services to the customers.
   
   

   You can access the life insurance plans and compare the features at your comfort. In addition, there is the option to fill in your details, financial requirements and the provision to submit the necessary documents online.

2. Analytics and business insights - With effective customer and product analytics research, insurers have realised the increasing customer requirements and introduced various product advantages. For instance, the data from the purchase of life insurance plans in the recent pandemic shows an increasing awareness among the people and the effort to invest in comprehensive solutions that provide multiple benefits to secure the financial future of their families while also accounting for the inflation rate.
   
   

   For this reason, the insurance industry introduced Unit Linked Insurance Plans(ULIP) that provide a life cover and market-linked returns by investing in the securities market. You can choose the fund options between the equity, debt and hybrid funds based on your risk appetite and switch between the options if there is an economic downturn.
   
   

   And, with the traditional term insurance plans, you can now get a return of premium as a maturity benefit.
   
   

Therefore, we have seen that the digital backbone involving data and analytics introduced various product solutions and automated the processes with progressive business insights for a better customer experience.

Now let us know how the transformation is evident in the real insurance service scenario.

How is the Digital Transformation Evident in the Insurance Industry?

A transformational change can be evident in different ways, such as the improved customer base, increasing profits, better investment opportunities etc., In the life insurance industry, it is evident predominantly by way of a better customer experience. It is contributed by three different factors:

1. Innovative products - Insurers have introduced various comprehensive life insurance solutions that are accessible online. You can research the features that include a life cover, savings and investment component, customise it based on your family commitments, income and requirements to make it flexible to your demands.
   

2. Social media - The collaboration is made simpler and comfortable through the social media network. You can avail of a service, comment on your experience and even participate in a revolution based on your concerns through social media.

3. Access channels - Gone are those days where you had to visit the nearest branch of your insurance provider to purchase a product. You have the online portal, social media, and other digital platforms to access the products, compare the features, analyse their returns and buy a life insurance policy. Smart mobile applications with user-friendly features for navigation is the new trend.
   
   

Why is There an Insurance Digitalisation?

Having seen the digital bone driving force and how it has transformed the insurance industry, it is also important to realise what caused the transformation to understand its reliability:

1. Changing customer demands - With the increase in a secure lifestyle, customers started looking for more advanced options and processes to avail themselves of the best benefits. They want smart mobile applications, instant response and a delegated service. They want personalised services and not the involvement of any agents. And, this change in the customer demands is increasing. With the increase in such demands, insurers will continue to make efforts for digitisation in the insurance sector.

2. Tech powered market - Every industry, including the finance industry involving banks and other financial service organisations, have gone digital, increasing the competency levels to a great extent. To fit into such a technology-powered market, insurers will continue to transform the digital life insurance agency.
   
   

While these factors compel digital transformations, it is also encouraged by the government and the regulators to a great extent.

Conclusion

Digital transformations have a steady bearing on the customer experience. Increasing customer expectations and development in technology have been the drivers for a digital transformation. It has enabled insurance providers to use the data management options to automate processes and develop better business insights to enhance customer service.

It is evident from the access channels, innovative product solutions and the social media collaboration in the digital life insurance industry. So, if you are a technology-driven person concerned about securing your financial future, it is time to open up the horizon to reach out to the best product digitally!

L&C/Advt/2022/Mar/0679