Traditional insurance models worked but until a certain period. The traditional way of doing insurance has been deemed complex and costly with the long processes of waiting for the client to choose and decide when to see the broker and once this meeting happens there is still no guarantee of a sign up.
With all the technological innovations of the world at large, customers and the business sector is somehow beginning to acknowledge that technology is the future and is changing our ways of life and every member of society and enterprises should also start moving towards this direction. This technological migration has made it easy to measure customer behavior, preferences and to track where your business has been mentioned whether it’s good or bad reviews, just to allow rectifications and improve on how they do business.
Digital technology is disrupting how business is being conducted these days and traditional insurance markets have as well fallen prey. As opposed to the traditional ways of doing insurance, the middle man is being cut off the process as the innovative ways allows for direct self-assist functionalities without having to consult anyone. The instant messaging functionalities on certain websites are making this migration even more easier to work around, easy to understand and provide better customer analysis.
The on-demand insurance model benefits the business infrastructure in many ways than one. The insurance industry carries larger amounts of sensitive and personal data, moving online will mean insurers will save costs and ensure client protection and safety.
While some people may agree that this is a great move, some enterprises still find this innovative approach to doing business difficult because they still believe that IT systems are developed on higher trust levels in product offerings and relationships between company representatives and customers resulting in some insurers resisting the change as they worry that client relationships could be compromised at some extent should issues like identity theft prevail.
However, this is considered the perfect time for insurers to relook their IT options and some early movers have started to eye this opportunity for them to gain first mover advantages and provide innovative ways of interaction such as automated response functions and instant customer attendance to help improve their service delivery with ease.
The only thing that insurance companies cannot change would be the traditional relations between their companies and their clients mainly based on trust. But research shows that adopting technological route can only add more value to the business whereby insurers can track customer preferences and trends and in turn offering better service delivery and customer satisfaction.
Research highlights that moving insurance online could as well improve operational performance of insurers because at the current moment the industry is more paper-based and requires a lot of administration but moving the business online can mean productivity and efficiency within departments. This move also reduces costs and helps in boosting sales. This move may well also require the employees to be trained and fast tracked to understand these systems for better utilization and for the value added to be apparent.
Subscribe to stay ahead with the latest updates and entrepreneurial insights!
Subscribe to our newsletter
Get access to the latest industry & product insights.