Digitally Disrupting Traditional Sales & Operations Models in Insurance

Digitization needs to transform the traditional sales and operations models in insurance

Digitization has crept into every sphere of life, and the need for digital processes has become bone deep in the lives of most born in the 21st century.

Every major business, including insurance, confronted numerous digital disruptions in 2020. Across nations and industries, we witnessed a total shift in the corporate landscape. Insurance carriers who have dug their heels into digitization have experienced the positive effects of doing so. Agencies that are yet to invest their time and money in equipping themselves to face digital reality may have a tough time keeping up with their competitors.

Digitization with a human touch

Digital disruption in the insurance industry signifies evolving customer expectations at its core. Insurance exists to help protect those who purchase it in times of crisis. So buying it shouldn't become a crisis for customers, and insurance sales should be convenient and straightforward.

According to a recent  PWC survey, 41% of consumers are willing to switch insurance providers in favor of more digitized ones. This doesn't go to say that customers want an entirely digital process.

In contrast, customers prefer digital experiences that convey a human touch. For example, cumbersome processes such as documentation would fare better off online. Whereas buying insurance requires a human point of contact as customers need professional advice and guidance in picking a plan that works for them. Assisted sales processes that combine digital products with an agent can help with reducing turnaround time. Customers won't have to wait long hours before receiving a response, and agents don't need to respond to every customer manually.

Digitization needs to reach field workers; companies should invest in a system that assists their on-ground activities. Companies investing in humanizing digital processes can benefit significantly due to their customer-centric nature.

Adopting automation and going paperless

Paperwork, handwritten notifications, follow-ups, and underwriting are all tasks of the past. Companies can save money by automating regular processes and redirecting several full-time employees to more creative projects. Intelligent automation combines Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) to create end-to-end workflows that think, learn, and adapt over time.

With intelligent automation, insurers can rest assured that several manual tasks are handled more efficiently and effortlessly. When files are digitized, processed, and saved in the cloud, you can automatically examine them. In this manner, agents can quickly identify when inconsistencies appear and reject documents that display these errors.

Predictive analytics can also lend a better understanding of customer intent based on their preferences and decisions. With predictive analytics, you can also analyze previous data to detect patterns and trends. Forecasting future events and outcomes is another advantage of using predictive analytics to create practical solutions for the future.

Self-serve portals for customers

Self-serve portals are essentially the launchpad for any customer who needs support. It empowers customers to request service, find information, resolve problems, and track tickets. While carriers and agencies can handle more prospects and customers in real-time, customers are also more satisfied because they can connect with the company right when they need it. The self-serve customer portal is also a step forward in moving the insurance process online.

Redesigning customer journeys to be more inclusive

Customer journeys need to be rethought in the insurance industry with the incoming of digital processes. In the age of Amazon and Netflix, customers expect personalization and see it as the new normal. Customer-centricity, automation, and analytics are some components to consider implementing when creating new customer journeys.

Investing in chatbots provides both customers and agents several opportunities to connect. Chatbots can act as an extensive customer service center while substantially reducing customer service and sales expenses. Smart systems such as CRM can also send policy renewal reminders, give duties to agents, and maintain cordial relationships with clients by delivering pleasant greetings and unique offers. Agents can leverage consumer feedback to obtain follow-ups from a chatbot right away. Digitizing conversations can influence purchases, as research shows 87.2% of consumers have neutral or positive experiences with chatbots.

The insurance sector should also consider digitizing the tasks of bank employees who come under the bancassurance industry. Creating a digital journey that connects the insurance provider with the bank's employees can help with driving higher premiums. Customers expect improvements and new products, which is a significant motivator to switch carriers in 2021. Insurers that pursue digital transformation will meet challenges, but those who don't will make their entire occupation a challenge to overcome.

Author:

Nilesh Patel, Founder and CEO of Leadsquared