How technology plays a prominent role in improving insurance journey

There is no doubt that technology is driving significant changes in the insurance sector. In addition, the last 18 months have even increased the pace of this evolution. Given the fact that the whole idea of insurance is to cover unforeseen risks, it is one sector that is expected to emerge as completely transformed in the post-COVID world. In fact, a change in consumer habits is already visible and insurers are deploying digital technologies to keep pace with this change.

In the 21st century, new digital technologies are changing the way customers interact with insurers. The insurance industry is a fast-evolving utilising modern technology to add to customer convenience. From comparing different insurance policies and companies to buying a policy, and from renewals to filing and settling claims, technology today plays a key role in improving consumers’ insurance journey. In today’s time, insurance companies are already operating through digital channels, depending heavily on technology to service an insurance policy. Here are different ways in which technology is transforming insurance experience:

Comparing policies: Being able to find details of insurance policies online has made the entire process hassle-free. Almost every insurer today offers free online insurance quotes. In fact, there are also online platforms that offer insurance services from almost every reputed insurance company in the market. One can simply log in to these websites, enter their details and compare insurance policies from different insurers in terms of price, inclusions and exclusions, as well as their past record of settling claims.

Being able to compare different plans from the comfort of your home saves you a lot of time and helps you make an informed decision about the policy that serves your specific needs. It also eliminates the need to meet an insurance agent in person, or even the need to talk or enquire about an insurance product through the phone.

Purchasing a policy: Once you have identified the policy that is right for you, you can even make the purchase online in just a few clicks. Today, technology enables insurance companies to deploy artificial intelligence to use data furnished by you to offer personalised insurance products and even conduct the underwriting process. KYC has also transitioned to a completely online process, and with secure digital payments, you can pay your insurance premium in a hassle-free manner as well. Once you make the payment, the insurance policy will be delivered to your e-mail account in just a few moments.

Filing a claim: There was a time when filing an insurance claim was considered to be a tedious and long process with a lot of paperwork, running from pillar to post to get the claim from the insurance companies. However, using technology and innovations in this space, many companies have adopted a more customer friendly and convenient process of taking this entire process online. This not only adds to the customer convenience and reduces paperwork, but also helps speed up the overall efficiency of the entire claim-filing process. All you need to do is visit the insurance provider’s website and file the claim in the given format, providing some essential details and uploading the required documents. Some insurance companies have even introduced dedicated mobile apps that you can use to conveniently file a claim.

Claim settlement: The biggest way in which technology is transforming the insurance experience of consumers is the AI-enabled claim processing which reduces the turnaround time drastically from weeks to hours, and even minutes. In some cases, it has even been reduced to seconds like in the case of New York-based insurance start upLemonade which established the record of paying out the claim in just three seconds, the fastest claim settlement in the history of the insurance industry. Many insurance companies today use technology to process and settle the claim in India as well, making the whole process quicker and convenient for the policyholders.

Customer service: In terms of customer service, technology has proved to be game-changer with highly sophisticated ChatBots addressing most of the consumer queries without any human intervention required. ChatBots are digitally generated answers to frequently asked questions, making it easier for policyholders to get information faster than before. With technological advancements in the future, these ChatBots are expected to become even smarter in coming years to address an even wider range of queries from customers, and provide them final resolution instantly.

There is no doubt that technology has completely transformed the way consumers experience their insurance journeys today. This has not only made the entire process more convenient and efficient for them, but the use of technology has also reduced costs for insurers, which they often pass on to their customers. Moreover, unlike paper insurance policies, the risk of loss or damage to a policy is also eliminated. This, of course, is just the beginning. Technology is constantly being upgraded and the way you experience insurance is going to change entirely at an unprecedented pace.

The author is CTO, Policybazaar.com.