The digital transformation of P&C insurance is crucial for its success in a world where customers are increasingly looking to their mobile, digital devices for products and services that meet their needs. Between the large numbers of new technologies that are being created and used daily and the growing number of new customers who unconsciously use these technologies in their daily lives, P&C insurance digital capabilities are growing in importance and viability. Anyone who doubts the competitive pressure just needs to look at the pace of new insurtechs and other solution providers jumping into the race.
New technologies that can reach customers both where they work and live, whether it’s for business or personal interactions, are increasing customer ease of use and experience. The retail world has picked up on this technology and is reaping the benefits as many industry experts talk about “the Amazon effect” on insurance customer expectations. Unfortunately, many P&C insurance companies are still struggling to incorporate these digital solutions and introduce them in a rapid and scalable way.
Digital capabilities like intelligent automation increases cost effectiveness, facilitates company growth and improves customer experience. P&C digital transformation is essential for established carriers to remain relevant in an ever-changing environment of customer expectations. New competitors are also changing the P&C industry as adjacent areas, like auto manufacturers, are beginning to sell insurance too.
New type of customers
Customers between the ages of 18 to 35 are changing the way business is carried out. Online shopping experiences have changed customer expectations. They want their products, their services and their communications to be instant, self-serviced and personalized. With the prevalence of digital devices, customers are used to receiving near instant responses to their inquiries. They are accustomed to making choices and finding information independently, on a screen of their choice and often only seek human intervention when there is no other option. Additionally, they look for products and services that meet their specific needs. The traditional methods of requesting insurance services are no longer enough.
In addition, older established customers’ practices of querying an agent for information are also altering to reflect their use of digital devices. Experiences ordering groceries and restaurant food online and refilling prescriptions from their phones have changed the way this demographic interacts with technology. The speed and efficiency of working on a digital platform is modifying their behavior to become more digitally savvy. Without digital transformation of your P&C insurance journey, your ability to meet your customers’ needs will be too slow and cumbersome to be effective.
What does digital transformation look like for P&C insurance?
P&C insurance technology trends are looking towards two vital areas: Telematics-driven Usage-based Insurance (UBI), and Conversational AI. Both have a strong presence in today’s digital environment but are underrepresented and underused in P&C insurance. But more importantly, both of these technologies enable insurance companies to customize and communicate with a growing number of customers in a digital era.
These two technologies are no longer considered optional within the customer experience. They are required to create a robust, self-served, and immediate positive encounter for current and prospective customers. Even if a customer won’t opt in to UBI, not offering it as an option can create a perception of a P&C carrier that is not on par with their competitors. And we all know the customer’s perception is their reality.
The digital technology transformation allows you to provide an excellent, competitive, if not differentiating, customer experience. Your P&C insurance offerings become more robust, more customer friendly and more cost effective.
Interested in learning more about what Ushur can automate for your company?
Telematics-driven UBI: The crossroad where communication drives customization
The technology behind telematics has developed incrementally since its inception more than 50 years ago. The tracking abilities of GPS have been refined both for vehicles and for property tracking, such as recording data from home security systems. More vehicles have telematics installed into their basic components and more customers are using their mobile devices within these vehicles.
In fact, telematics is so prevalent in modern technologies throughout vehicles and homes that UBI can be as customized as each company determines. With the automatic retrieval and reporting of data, companies can tailor their customer experience to a specific target market and can track customer behavior.
One Size Doesn’t Fit All
A one-size-fits-all approach to insurance is no longer a viable option. Customers want insurance that is directed to their specific needs. UBI provides that competitive edge for carriers who can now interpret data on how customers use and interact with their property. As such, it is invaluable in calculating and deciphering customer requirements allowing you to provide a personalized experience.
Additionally, UBI allows for improved customer segmentation. Not only can you offer customers coverage that is based on their actual use, but you can also anticipate future needs. In fact, UBI gives you the ability to predict insurance trends and then develop and offer them in a timely manner to a specific customer base.
UBI provides you with data to better align insurance software requirements with actual risk, and it gives customers immediate feedback so that they can change their behavior to lower their insurance rates. While this is best illustrated with driver behavior, it can also be used for home security habits as well as property rental practices. Higher-risk customers carry the brunt of the cost while those who are more conscientious are rewarded…and remain loyal, long-lasting customers.
Conversational AI: Friendly FAQs
Conversational AI is a technology that uses artificial intelligence to create automated human-like dialogue. Conversational AI uses machine learning to intuitively answer questions online or via text in a seamless, human manner, giving the customer fast, detailed information they are asking for in a format they are familiar with.
The significant advantage of this technology lies in its ability to increase customer satisfaction and at the same time decrease operating costs.
AI technology is important in building a self-serviced, interactive, fast user experience for customers that will increase customer satisfaction. Use the capabilities of machine learning to answer simple requests and questions quickly and automatically on multiple channels. Conversational AI platforms take care of routine inquiries and basic messaging for you and speed up the query process for customers.
Further, automating basic requests with AI decreases incoming calls to your call centers and branch offices, so that your employees can focus on excellent customer service instead of predictable high volume inquiries. AI also helps identify areas where services are lagging or pieces of the process are slipping through the cracks, saving your employees time and increasing awareness of where you can improve customer satisfaction.
Digital Transformation: The Power of Change
The digital landscape is changing every day. New solutions are being developed that will have an increased impact on customers’ expectations, especially in the P&C insurance arena. More and more people prefer to search for information on their devices and screens. Fewer and fewer people will tolerate only having the option to obtain service by calling their insurance company.
And like their experience when they order food delivery, P&C insurance customers increasingly expect their carrier to proactively let them know where their service request is in its journey to completion.
Customers expect information at their fingertips. Literally. They demand their information quickly and want customized services that reflect the way they live. Without digital transformation, the ability and agility to change with the times is hampered. Ease of doing business can make all the difference in dissuading an existing customer from shopping for a less expensive policy.
Ushur enables digital that differentiates
Ushur’s intelligent insurance automation platform enables P&C insurance carriers to offer valuable omni-channel capabilities to provide their customers with a consistent superior experience regardless of their service interaction involving a policy, bill or claim.
Services like our Invisible App allow P&C insurers to create dynamic customer or claimant engagements in hours with no coding experience needed. Improve and automate the insurance customer experience, lower costs and give customers the attention they demand in today’s changing and increasingly competitive market. Our no-code platforms facilitate automation workflow development by business analysts, allowing IT teams to focus on complex technical projects also key to a carrier’s success.
Ushur is leading the insurance industry into the new digital age, one that benefits both insurers and their customers alike. We are on a mission to transform how insurance carriers do business. Our easy-to-use platform is the perfect match for any insurer in any segment: P&C, Life & Accident or Healthcare.
The future of the insurance industry is altering and developing into new digital territory every moment. Be a part of that future. Exceed expectations and act now. Click here to request a demo today!
Ushur delivers the world’s first AI-powered Customer Experience Automation™ platform that has been purpose-built, from the ground up, to intelligently automate entire customer journeys, end to end. Designed to deliver delightful, hyper-personalized customer experiences through rapid issue resolution and unified, omnichannel engagement, Ushur is the first-of-its-kind system of intelligence. It combines Conversational Automation and Knowledge Work Automation in a No-Code, Cloud-native, SaaS platform to digitally transform every step of the complete enterprise customer experience – from Micro-engagements™ to entire customer journeys.
Backed by leading investors including Third Point Ventures, 8VC, Pentland Ventures, Aflac Ventures and Iron Pillar, Ushur’s Customer Experience Automation™ solutions are currently in production at some of the leading insurance providers across the globe including Irish Life, Unum, Aetna, Cigna and Tower Insurance.
Have you ever wished that it was easier to interact with an insurance carrier? We all know that waiting on hold for what can feel like forever and scouring the Internet for answers to seemingly basic questions are major hurdles that can cause most customers to approach simple tasks, such as filing an insurance claim, with caution and dread. With Ushur’s omni-channel Virtual Customer Assistant (VCA) powered by Conversational AI, insurance carriers can automate servicing for their end users in their channel of preference. That’s why Ushur has added WhatsApp, a popular communication tool used by 2 billion people worldwide, as a communication channel.
The insurance policy is a contractual agreement that stipulates, in exchange for payment, a person or business will receive reimbursement or financial protection against losses from an insurance company. In other words, if the required premium is paid, a customer will be paid for covered damage, injury, illness or loss.
Insurance is one sector of the financial services industry which has faced challenges as it embraced the digital revolution - first by choice and then by necessity following the pandemic lockdown. Cloud computing has taken hold, but some carriers are early in exploring solutions like artificial intelligence and machine learning.Insurance companies are eager to find technologies that cannot just improve but differentiate their overall customer experience, ideally while also reducing operational expense. One specific area insurance companies are looking at closely is claims service and process automation or as Ushur likes to call it, the future of insurance.
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