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6 top recommendations towards innovative insurance in the digital age

DIGITAL VENTURES November 08, 2018 3:14 PM

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Digital Ventures recently shared about Digitizing Insurance and introduced stories about InsurTech. To gain a complete perspective regarding tangible technology applications, Digital Ventures summarized 6 top recommendations for businesses to advance and become innovative insurance. Let us take a look at how technologies will alter insurance policies design and even impact the customer journey.

 

 

Simplify life insurance

Life insurance is known for its risk assessment standard that is higher than other types of insurance. This has led to complex and cautious interrogation designs. Clients are often puzzled with Q&A from sales representatives before they arrive at the proper terms and conditions, coverage, and premium assessments. This makes life insurances more complex and may not match the true need of consumers.

As a result, innovative insurance should simplify processes by using consumer-centric principles to move insurances closer to consumers. This can begin with a simple Q&A that reflects the terms and conditions. Also, they should have the flexibility to adjust the terms to match the expected price and coverage. Premium and coverage calculation process should be consumer-centric.

In order to achieve such services, insurance firms can make use of different technologies. For instance, terms and conditions design can use Artificial Intelligence data analysis. Also, the data collection process can be available online for users to have real-time access. This can be assisted by robotic process automation that allows data collection and management on the website.

Build D2C channel: Build an online sales channel

Today, online platforms can be more than a marketing tool for insurance. Online channels can be a sales channel for insurance products.

The D2C (Direct to Customer) option via online channels offers more opportunities. One important benefit is that businesses can directly acquire consumers’ digital data. This information can be coupled with Big Data knowledge and technology to support trend forecasts. This will enhance risk management and product design. Also, digital D2C allows consumers to directly interact with insurance firms. The additional role of advisors will provide insurance businesses with more trust.

The technology related to digital D2C channel is cloud computer and security. They help increase safety and security for the system. In terms of interactions, AI can also be digital advisors who introduce products and offer 24-hours assistance support.

Combine life and wealth/health

The aging society is a worldwide trend. Although this group is no longer working or receiving as much income, they possess huge assets that can be invested to profit for themselves or their family.

In the near future, instead of offering only health insurance, insurance companies can become financial advisors who help the aging group manage assets for purchasing life insurance, investments, or buying asset insurance.

The technology for this service is no other than WealthTech, a part of Fintech. Get to know WealthTech at “Get to know “WealthTech”, another noteworthy FinTech, via China’s financial development strategy”.

New online and offline point of sale: Adjust sales channels following consumer behavior in the digital age

Technologies don’t only alter processes but can change marketing practices. Consumers may want speedy purchase but in order to truly understand their needs, marketers must use Big Data to analyze and uncover behavior trends.

Today, consumers’ online behavior can better reflect their need to purchase. For example, the online search for hospitals may mean health awareness while school search may reflect the willingness to start a family. Insurance firms or sales can offer products to match consumer needs when they begin to search for these services. This is rather different from the past wherein they would have to passively wait until after consumers considered buying or after they have already purchased or used the products. 

Leverage social media: From marketing to risk assessment

Social media is a powerful tool for marketers and the insurance business. Insurance firms may offer products that match the personal data shared on the network. This help saves time regarding access to consumers and is more efficient.   

Aside from marketing, behavior and exposure on social media can be considered in the insurers’ risk assessment process. Any risky behavior on social media may be considered in the underwriting as well as terms and conditions evaluation.

Prevent over protection: Prevent extra costs from excessive insurance

Excessive insurance is a cost on both sides. The insurance company will need to negotiate with more service providers while insurers pay more. A solution to this problem is a win-win situation.

The appropriate coverage requires more in-depth information and such personal data can be collected from the Internet of Things. An example is acquiring health data from a smartwatch to show that a person is healthy. As this client has a lesser risk of being sick, their premium can be lower. Another example is data collecting via medical devices that can show probabilities of diseases. Insurance companies can use this data to design terms and conditions as well as premiums to match the circumstances.

Innovative insurance requires tech development coupled with the proper business model development. Most importantly, the value for the whole value chain must be considered. This is the starting point of InsurTech development.

For more stories about Digitizing Insurance by Digital Ventures, visit http://dv.co.th/cvc.php.