Another new year begins and many of us are probably shopping for insurance again because our provider just put up the premium on our renewals. We think they do this because they want to make more money (which could be the case as well) but equally the amount of fraud (accounts for 5-10% of insurance costs) that happens puts pressure on the insurance providers which directly feeds back to our premium.
In many cases, after checking the same data on us again by going through similar questions, we are offered a policy better than last year! Similar painful experiences when one needs to go through a claim settlement process where multiple parties are involved and settlement usually takes weeks or even months. Clearly, these are all not great customer experiences.
So, Amazon and Google are now entering the insurance business. Is that a weird proposition or a natural progression by virtue of them having access to so much data and information on individuals and businesses that they can leverage this asset and offer a more relevant insurance and better seamless experience? This is exactly the digital disruption insurers are facing today. But insurers have the advantage of not only having access to all this data but also the experience and license of providing protection for decades and hence the well-earned trust. In this blog, we see how insurers can bring together the new age ‘ABC’ for a true digital experience and keep themselves relevant and competitive. An end to end transformation of the insurance underwriting and claims process leveraging powerful advances in artificial intelligence, blockchain and connected devices (IoT) can bring the same experience to the customers that Amazon and Google are challenging to offer.
The Insurance Process and the current inefficiencies / challenges
The current pain points in the insurance underwriting and the subsequent claims settlement is very widely known. From the customer’s perspective, both the policy setup and the claim settlement process are long, tedious and unpredictable. They also don’t see any stability on their insurance premiums YoY even when they have made no claims. From the insurer’s perspective, the operational costs are escalating, frauds are increasing and customer retention is also costing them heavily.
Let’s bring together the A (AI), B (Blockchain), C (Connected Devices) for a ‘D (Digital)’ experience