By: Patrick Miazga, Analyst
Customers have many choices, so a temporary ‘feel good’ moment will not be a deciding factor in continuing to do business with you. The insurance industry specifically struggles with this concept as it has been behind other industries in aiding disjointed customer experiences. The first step an insurer can do is stop emphasizing the product it is selling and focus more on the services they offer. Besides selling products that mitigate risk, insurance companies can provide services to their customers that help minimize risk in day to day activities. Technology is simply one of the tools insurance organizations can use to create a seamless and positive customer experience through ways such as digital platforms, internet of things, and artificial intelligence.
Digital platforms allow underwriters and insurers to gather information about a new client faster and more efficiently than ever. These smart forms use targeted logical questions, so insurers get the information they need without too much burden on the customer. SmartForm is a dynamic electronic form that has capabilities beyond traditional PDFs. They can change the question based on the response to a previous question so agents will have gathered all the information they need in a shorter amount of time and then use that information to determine rates and changes to policies quicker and more efficiently. Thus, in return spend less time questioning a customer and making the valuable use of the customer’s time.
Internet of Things
The ability to transfer data over a network without human-to-human or human-to-computer interaction is what has made the Internet of Things such an invaluable system to the insurance industry. Argo Insurance has created an internet of things (IoT) based thermometer that allows restaurants to monitor foods to prevent spoilage and foodborne illnesses. Such products can enable customers to practically minimize risk and reduce the effort needed to run their operations. Insurance companies can generate an entirely new stream of revenue if more focus is emphasized on creating products that can save customers’ tangible assets from going bad!
Insurers need to be able to predict future events to price out reserves as well as predict future cash flows. AI, a wide-ranging branch of computer science that since its inceptions have been concerned with building smart machines capable of performing tasks equivalent to those performed by humans. When used with customer data, AI can give the insurer insights on what products a customer may buy and which policy/kind of coverage they need. Along with internal data, insurers gather data from partners and then run the data using these AI algorithms to allow them to make smarter business decisions. This process like SmartForm will look to expedite the painstaking process of applying and being accepted for insurance out of the equation, making the customer’s not fear the dreaded process of getting the coverage they need.
Technology is changing the landscape of every industry, and specifically, those industries who know how to use it efficiently will benefit from it the most. By working at every step and keeping the customer front of mind, the insurance industry can use technology to dramatically change both the customer experience along with the customer perception of the industry itself.
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