IE magazine is always keen to learn more about online trends across the insurance sector.
In an era marked by rapid technological advancement, the insurance sector finds itself at the height of transformative change. From artificial intelligence to blockchain, emerging digital trends are reshaping traditional insurance practices and paving the way for a more efficient, customer-centric industry. Here, Michael Ryan, CEO & director of Ink Digital, discusses how these digital trends are shaping the future of the insurance sector, and what it means for insurers, policyholders, and the industry at large.
In your opinion, how well is the insurance sector adapting to emerging digital trends?
“The pace of adaptation varies across different segments of the industry and individual companies. Typically, the insurance sector is seen as slow to adapt, but I would say overall there has definitely been a shift towards embracing technology more. Aviva, for example, is investing heavily in digital sales and customer service channels and experimenting with blockchain and other new technologies.
“Companies are noticing how digital can help them streamline their operations, enhance customer experiences, and drive innovation, but there is still work to be done.
“Digital is offering insurers the chance to not only stay competitive but also serve their customers better, so it’s a trend not to be ignored.”
Can you highlight some specific digital trends that are currently reshaping the insurance industry?
“One of the main areas we’re seeing digital trends making an impact is in customer interaction and engagement. More insurers are starting to use digital channels like mobile apps, chatbots and online portals to provide more convenient and personalised services.
“We’re seeing an increase in companies offering digital platforms for customers to browse, compare, and purchase policies, and many allow customers to access policies within minutes, without going to an office or even speaking to an agent.
“Blockchain and AI are also having a big effect. Some insurance companies are using the technology to enhance transparency and security in claims processing and underwriting. It can also allow them to detect fraud more efficiently and help users access claims much more quickly.”
In what ways do you think emerging digital technologies are impacting customer expectations within the insurance sector?
“Advances in technology mean people expect seamless online experiences, 24 hours a day, in many aspects of their lives, and they expect the same level of ease and accessibility when it comes to their insurance needs.
“Customers want insurance that feels like it’s made just for them. They expect insurers to understand their unique needs and preferences and, thanks to all the data and analytics tools available, insurers can actually make this happen.
“Policyholders demand quick and efficient service from their insurers, and digital tech like AI and automation which streamline processes like underwriting, claims processing, and policy issuance, are helping reduce turnaround times and improving overall efficiency.”
How are insurance companies leveraging data analytics to improve customer experience?
“Digital technologies enable insurers to gather and analyse data from various sources, including IoT devices and social media, to better understand customer behaviours and offer targeted recommendations.
“By analysing customer data, including demographics, past interactions, and preferences, they can tailor products and services to meet each customer’s needs. This personalisation extends beyond just recommending the right coverage. It also involves offering discounts, rewards, and add-on services that resonate with each customer’s unique circumstances.
“By segmenting customers based on their characteristics and behaviours, insurers can also make their marketing messages and communication strategies more targeted. This ensures customers receive relevant information that aligns with their needs and preferences, rather than generic mass communications they might not care about.”
With the rise of InsurTech startups, how do traditional insurance companies stay competitive in adopting and integrating new digital trends?
“Insurtech startups have really disrupted things since entering the scene, meaning it’s more important than ever for established insurers to stay competitive and adopt similar new technologies.
“They can set themselves apart by emphasising a customer-centric approach to build stronger relationships with policyholders, using data analytics and personalised experiences to deliver greater value.
“But it’s not just about staying ahead of the competition. Traditional insurance companies should also be looking at ways of collaborating with InsurTech startups through partnerships or join ventures to make the most of their technologies and capabilities while maintaining their existing infrastructure and customer base.”
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