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The Future of Insurance: Turning Change into Profit

insurance-change

The Future of Insurance: Turning Change into Profit

Today’s insureds are happy to click on a button, interact with an automated system and independently purchase insurance and file a claim. These changes in consumer behavior are upending how traditional insurers attract new policyholders and how they can retain the ones they already have. Large insurance companies are leveraging their ability to attract customers via sophisticated digital platforms, real-time quotes and speedy claim resolution. In the early days of digital transformation, enterprise-level insurance organizations were able to make use of expensive technologies to outmaneuver smaller insurers. But the availability of digital platforms that are specifically designed for smaller insurance organizations is combating this trend.

Small to mid-size insurers are able to make use of technologies and employ automation, data collection and machine learning to improve decision-making, increased productivity and emphasize prevention above damage control. Here a few insurance software solutions that can turn change into profit.

Automation and Data Collection

Automated systems increase productivity due to the sheer volume of data they are able to ingest and analyze. When data is collected via mobile devices, Internet of Things technologies, tablets and other digital devices and sensors, the scope and volume of the data increases. The larger the data pool, the more accurate the analysis. Smaller organizations can make use of automated systems to collect data on a larger scale than they were previously. This results in improved accuracy of quotes, personalized premiums and pricing, robust underwriting tools and improved loss control.

Unstructured Data and Proactive Models

With automated systems taking over the more tedious tasks agents face, agents are free to pursue leads, follow up on difficult claims and proactively engage customers based on the results of predictive analytics. Predictive analytics will continually improve as changes are made in data collection processes. Insurance software solutions are adjusting to accommodate a shift from structured data collection to unstructured collection. Unstructured data is collected through a variety of digital channels to include video, texts, multi-media and social networks. Data from these sources will reveal customer behavior and habits and future risk. Agents are able to look at these insights and make better decisions when offering policies or recommending services.

As smaller organizations are better able to provide tailored products, they can improve their marketing by honing in on leads that are most likely to convert. In addition to increased sales, the availability of tailored products combined with predictive analytics will help insurers manage risk. Both of these data-driven changes result in higher profit margins for small and mid-size insurance organizations.

CHSI Technologies