The tools and applications that comprise digital insurance include Artificial Intelligence and Machine Learning, Data and Analytics, big data and also cloud services which are digital transformation disciplines that have driven the digital transformation of the insurance industry, world-wide. And while these tools are vital, the digital transformation process involves much more than just installing new software applications.

 

For operators with a complex mix of legacy IT systems, the idea of ​​dealing with all these digital updates and implementing new systems can seem daunting, expensive, and risky. But don't worry cloud infrastructure and technological developments allows you to take an agile, multi-phased approach to your digital transformation.

 

How technology is changing the insurance industry?

 

Insurance companies today have had to digitise various aspects of their operations to keep pace with policyholder demands. Any business that wants to stay competitive in today's market needs to meet customers where and when they need something. The digital transformation of insurance powered by artificial intelligence, machine learning, predictive analytics, mobile services, live chat, etc. is enabling insurers to do this and will continue to change the industry for years to come. There are many examples of how the digital transformation of insurance has changed the industry. Operations are streamlined, customer interactions take place via chat, claims can be processed automatically, and brokers can aggregate all their information to work faster and more accurately.

 

Why is digitisation important in insurance?

 

Digitisation is a must for all industries. The benefits are clear and compelling, and companies that fail to digitally transform their processes and service offerings will cease to be competitive. For insurers, web and mobile technologies mean a huge increase in speed and efficiency, increasing profitability, while consumers now expect products and services to be on-demand and personalised. 

 

They want insurance solutions that reflect their needs and lifestyles and are instantly accessible through computers and smartphones. If insurers do not respond to market needs, they risk losing business to digitally driven new entrants and competitors who are successfully adopting and driving change. 

 

Digitisation is changing the role of insurance, from pure risk protection to risk prediction and prevention. The risks that insurers cover and the ways in which they are underwritten, distributed, and manage claims, are also changing.

When we think about the insurance industry, innovation is not the first thing that comes to mind. Artificial intelligence has been gaining momentum in finance and logistics in recent years, but the insurance industry seems oblivious to its potential. However, things are changing and insurance companies are taking advantage of the opportunities this technology opens up. And these are impressive and benefit both the companies themselves and their clients.

 

How is AI transforming the insurance industry?

 

Customers often associate the insurance sector with a lot of paperwork, time-consuming meetings, handling complex insurance claims, and long months of waiting for a decision. Artificial intelligence allows insurance companies to radically change this image and adapt the service to the standards of the 21st century while maintaining a high level of transparency. This can save customer's worry and increase their confidence in the insurance provider. 

 

The insurance industry, insurance providers, and insurance provider risk companies can use AI to stimulate their business growth, reduce risk and automate various processes to reduce overall costs. Artificial intelligence allows insurance companies to keep up with changing market realities and adapt to the development of sectors with which they have close ties, especially the automotive industry.

 

The revolution brought about by autonomous vehicles is forcing many insurance companies to change the way they think about their future. AI-driven cars are most likely to change the nature of claims. They will be less frequent due to the lower number of accidents - but once they happen, customers will need a higher premium due to the complexity of the vehicle. 

 

With AI, insurers can build platforms that process real-time data for prevention purposes and automate much of the duties of insurance executives, including data processing, fraud detection, and claims estimation. The role of insurance agents could therefore shift to emotional support in the future.

 

Artificial intelligence will also lead insurance companies to gradually digitise their services. Compared to other industries, insurance is still heavily dependent on paper documentation and face-to-face meetings. This is problematic for clients who need immediate insurance or payment of an insurance claim abroad, for example. Digital platforms based on AI solutions solve this problem and enable remote verification and processing of claims securely, for both parties.

 

The importance of technology adoption and software solutions in the insurance industry

 

Historically, the introduction of new technologies in the insurance industry has been slow, mainly due to the high operating costs of established systems. This has resulted in insurers having more limited budgets available for innovation compared to banking. Data is increasingly at the heart of all modern businesses and technology is key to capturing, processing, and understanding it all to improve customer experience and insurers' ability to more comprehensively assess risk. While the insurance industry has been cautious about using technology in the past, it has accelerated the pace of technology adoption in recent years. Several insurance companies are looking to introduce automation in their processes and use technologies such as Artificial Intelligence and Machine Learning to integrate them into the customer journey and seamlessly offer hyper-personalised solutions.

 

Dotcom is a trusted software solution and custom development partner for the insurance industry

 

Dotcom Software Solutions has extensive experience in strategising, developing and implementing software solutions, with on-going support through the insurance industry in South Africa and around the globe.

 

Due to the increasing client numbers and subsequent data, it is overwhelming for insurance companies to manage their daily tasks. Agencies need a comprehensive online platform to communicate, collaborate, automate operations and improve customer experience.

 

With approximately ten years of experience in the insurance industry, we are able to innovate custom software development with governance and compliance, incorporating artificial intelligence and machine learning, comprehensive and intuitive data and analytics, mobile applications and even offer tailor-made cloud solutions. 

 

If you are looking to develop or update legacy software for emerging customer needs, or require a newly built solution that improves operational efficiencies and business profitability, our experienced and skilled team are ready to engage with you.