Technological developments and changing customer expectations are the key factors for insurance companies to embrace digital transformation. How will these trends affect the Insurance businesses and industry overall? -Insurance companies need to find a good balance between the digital services and maintaining personal touch which has been fundamental for this industry to survive.
Digitalization offers the insurance companies the opportunity to cut costs, increase efficiency, provide new services and also transform the front end of their businesses, enhancing customer relationships and combat fraud. Subsequently, the insurers are expecting technology to improve their competitiveness and improving customer acquisition and retention.
Modernizing Legacy Systems and Fintech innovations in insurance
Like all financial services firms, Insurance companies are extremely dependent upon technology. However, their core systems are aging rapidly and thus causing significant problems. Timeworn legacy systems require good maintenance leading to an increase in the level of costs, while specialist operating knowledge is at risk of being lost as the workforce ages and retires. Insurance companies reliant on older systems cause a friction between process and decision-making, degrading business agility, all of which can easily degenerate into strategic risks. This is a blocking factor in enhancing customer experience. Hence, to correct this problem, insurers need to embrace Digital Transformation.
The growth of Fintech diversity, change in customer behaviors and more sophisticated technologies, are influencing the insurance sector. Hence, insurance companies and other technology start-ups are working in parallel to redefine and modernize the customer service through creative modifications such as risk-free underwriting, claims processing and so on. The Fintech industry has become a critical part in today’s business infrastructure and thus, helping insurance companies to become more customer-centric in order to align to the changing customer needs and expectations. Inevitably, this will help in developing a strong correlation between customer’s experience and the level of trust the customers have with the insurance companies.
Partnering with NanoBNK
Despite being reliant on the legacy systems, insurance companies are taking the first important step towards making an effort to cut costs, and drive product innovation to stimulate new sources of revenue. NanoBNK have industry experience applying technology solutions to help modernize and digitize financial products, platforms and processes.