Insurance Agencies: Accelerate Your Drive Towards Greater Digitization in The Wake of Covid-19
Like many other sectors, the Covid-19 pandemic has forced the insurance sector to quickly pivot entire organizational structures in a very short span of time. Insurers, worldwide, are retooling to allow their employees to operate from home, while at the same time managing a huge influx of claims across different product lines.
Covid-19 has also thrown unexpected bumps in other insurance sectors. A classic example would be the Automobile Insurance industry. People are asking, ‘Why should I pay my car insurance now that I am locked down and do not drive?’. Such unprecedented changes have led to a dramatic drop in the processing of auto insurance.
Steering back to the topic we’re on – Insurance agents, as an industry must react quickly to catastrophes. Agents and brokers are being pushed to respond to these immediate challenges on a scale never seen before.
The immediate impact of the pandemic has led many insurers to conserve capital in order to meet higher levels of claim outlays and mitigate any near-term fall in premium income. This clearly means that some ICT (Information & Communication Technology) spend will be affected.
ICT Spend Focused on Cost Reduction
In 2019, predicting a decrease in global trade, the insurance sector became cautious about its growth prospects for 2020, due to which reducing operational costs had become the business priority driving ICT (Information & Communication Technology) spend for 2020-21. This led many projects to the cloud as their key investment area, like consolidating, modernizing, and migrating core processing and back-office systems; and going beyond fraud detection systems.
All such projects may suffer some near-term impacts due to the pandemic, like keeping project teams operating normally, but they will not be cancelled.
ICT spend on digital customer channels is another area that has seen a constant decrease in growth during the year 2020. As customers in lockdown are increasingly forced to interact with the agents/brokers via digital channels, these channels are tested both in terms of capacity and capabilities to fully meet the needs of the customer.
It may be too early to tell whether the insurance industry’s investment in digital channels will meet customer expectations or not. However, it may be the case that following the immediate crisis, some valuable lessons materialize for the industry as to whether they need to re-examine this as an investment priority.
The Growing Need To Digitize
The long-term effects on the insurance industry are likely to be the most profound impact of this pandemic, especially the need for this industry to accelerate its drive towards greater digitization.
While many agents/brokers have invested significant time and money for more than a decade to transform themselves digitally, the insurance industry has tended to remain self-referencing with insurers continuing to compare themselves to their immediate peers, instead of looking at what other industries are delivering in terms of a comprehensive digital customer experience.
The primary goal of many digitization initiatives is to reduce operational costs, while enhancing the customer experience. However, in the brokerage sector, many agents have a tendency to affix low priorities to customer experience across multiple channels.
With a significant part of the insurance policy and renewal cycle already being conducted digitally, one thing this pandemic has clearly demonstrated is that there is still much further we can go digitally. As companies rapidly reconfigure themselves to continue operating and interacting with the customers, investing in the right technology can help leaps and bounds.
How Automation and AI Is Helping Insurance Agents To Digitize?
While the main challenge for incumbent insurance carriers is the persistent drag of legacy systems, an intelligent solution to overhaul the historical, clunky and disjointed processes can make a lot of difference.
The emergence of Intelligent Automation is presenting insurers with a solution to a previously unmanageable problem. A combination of Artificial Intelligence (AI) with Robotic Process Automation (RPA), Optical Character Recognition (OCR) and other technologies, the boundaries of what is possible through automation are expanding. In the meantime, sophisticated digital interfaces are continuing to improve the customer experience.
Exdion offers an Artificial Intelligence led solution for seamless policy reviewing. Exdion Policy Checking on Demand (ExdionPOD) involves RPA along with Analytics and Cognitive Computing to transform the manual renewal process to an error-free automated process. With this AI powered solution, insurers gain a channel to serve low-value high-volume policies. They can also pursue right cost-based delivery mechanisms to target different customer segments with this solution. Cloud service based models, such as ExdionPOD enhance collaboration and are proven to be easy to set-up and get started with. This enables brokers to drive more productivity on higher risk tasks and focus on a more profitable business.
Digital technology is being closely examined by insurance agents/brokers these days.
While there are a plethora of technology vendors to choose from, picking the one with a quick go-to market and time-to-value is imperative.
Exdion is a cloud-based platform that facilitates insurance brokers and agents with insurance policy checking, renewals and compliance maintenance through their full-suite futuristic solutions. AI and ML help take the experience for agents further, by delivering contextual data and helping with faster TAT, thus impacting operations.
Talk to the experts at Exdion to know more about how Exdion can help agencies with AI, RPA and modern technologies to help them stay forerunners as they battle rough operational waters during Covid19.
Learn how Exdion provided Transformational Consulting to a leading insurance agency and the solution delivered measurable value.
Talk to the experts at Exdion to know more about how Insurance Agencies can tide through this crisis.