TLDR

• The insurance industry is going through a digital transformation that offers a range of opportunities
• A report by InsurTech Ushur supports that automation in the sector is boosting customer experiences
• Customer dissatisfaction with the claims process can lead to a loss of market share
• Insurers must revamp the entire insurance claims journey
• Digital transformation allows carriers to fundamentally change their products, embracing AI and machine learning
• InsurTechs can use the digital transformation to position themselves well in the market

In an era defined by rapid technological strides, the insurance industry stands on the cusp of an extraordinary evolution, heralding a new dawn through the prospect of a digital transformation. Amidst this profound change, the sector has emerged as a haven of innovation, embracing a digital metamorphosis that promises a new beginning in the space. Gone are the days of traditional, paper-laden processes; the insurance landscape now gleams with the sheen of digitisation, offering a treasure trove of opportunities.

A report by InsurTech Ushur supports that automation in the sector is boosting customer experiences. Claimants are already distressed when forced to file a claim and making this worse with a complex and lengthy process will not help. A convoluted interaction with their insurer is not acceptable in this era, with technological competency now higher than ever. Customer dissatisfaction stemming from inefficient claims process can lead to them seeking better experiences elsewhere. Another study from Ushur found that over 85% of those frustrated during the claims process considered switching insurance providers. To retain customers and optimise their resources, insurers must revamp the entire claims journey. Although the first notice of loss (FNOL) stage is relatively well handled, subsequent stages see a drop in service quality, resulting in an overall negative impression of the insurer.

Ultimately, the insurance industry is developing and transitioning at a rapid velocity. For many, solutions such as AI and machine learning will allow carriers to fundamentally change their product. It’s more about revolution than evolution, leaving many companies as big beneficiaries with quicker, more efficient processes, as well as vastly lower overheads giving them a higher profit margin. Digital transformation is here, and now it is changing the game for the better.