Digital Transformation in the Insurance Market: innovations promote improvements for clients and companies

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Technological innovations are transforming the relationship between insurance companies and customers. More connected, well informed and engaged, the traditional sector is aware of changes in consumer behavior. In order to meet new demands and stay current in a competitive market, companies are increasingly investing in digital solutions, such as mobile devices, Internet of Things, Telemetry, among others.

The new consumer places high expectations on the products offered by insurance companies, which demands a combination of speed, transparency, convenience and technology. These preferences are important for insurers to rethink the market and develop innovative product and service offers.

Digital Transformations Recreate Insurance Strategies

The digital environment is transforming the tasks of measuring, controlling and evaluating risks and the leading insurance market companies are aware of this. During the 27th edition of CIAB Febraban in June, Alexandre Leal, technical executive superintendent of the National Confederation of Insurers (Confederação Nacional das Seguradoras – CNseg), discussed the industry’s enthusiasm for promoting innovation through new technologies.

“The crisis has slowed the pace of growth in the industry, but not its enthusiasm for innovation. In 2016, the market’s revenue had a real increase of 4%, surpassing R$ 400 billion, of which R$ 285 billion returned to customers as indemnities, savings bonds redemption and withdrawals from pension plans. Technical provisions reached R$ 820 billion, while assets surpassed, for the first time, R$ 1 trillion”, says Leal.

A study conducted by the Harvard Business Review, called “Operationalizing Digital Transformation: New Insights Into Making Digital Transformation Work” pointed out that 43% of the surveyed companies in various industries are obtaining positive results from their investments in digital transformation.

New Technologies transform user experience

According to Gartner, by 2020, 20.8 billion devices are expected to be connected to the internet. By 2016, the forecast was 5.5 million new “things” becoming connected on a daily basis. This trend will have far-reaching implications for home, health and automobile insurance.

The Internet of Things is a network of devices that collects, monitors and shares information over the internet. These intelligent connected can include different objects related to the insurance market, in the automotive sector, in home security systems and even in health plans.
Here are some examples of technological applications that have transformed the relationship between insurance companies and customers, as well as their advantages:

Internet of Things (IoT) and Analytics

For insurance clients: In automotive insurance, for example, telemetry devices can be installed in vehicles and send the data collected to insurance companies. After analysis, it is possible to offer discounts to good drivers, as well as reduce the risk of accidents and minimize fraud and claims.

In residential insurance policies, smartphones linked to sensors installed in the house allow the user to control remote alarms and monitor the movement of people within the set boundaries. This provides greater security to the owner, reducing the possibility of burglary and break-ins, and allowing greater visibility into other property risks.

As for life insurance, biometric sensors and smartwatches can monitor data such as heart rate, blood pressure, among other data on the user’s vital signs, provide customized information and encourage the improvement of health habits. The insurance company may still offer discounts on services that fit the client’s profile, for example, seniors living alone, first-time parents, among others.

For insurance companies: Obtaining customer information and analyzing the data allows you to identify risks in certain profiles, optimize product pricing, find out what new risks arise when crossing data, detect and reduce fraud, and generate insights into the client’s safety, health, and daily habits.

 

Artificial Intelligence

For insurance clients: Allows for more agility and assertiveness in service and makes services more customized and proactive.

For insurance companies: Makes it easier to proceed with the automation of processes, such as smarter chatbots, the use of drones for the recognition of damage disaster areas or property assessments, in order to avoid fraudulent claims. This will also provide support for interactions between company departments, from the analysis processes to the evaluation of customer losses in several different situations, such as in an accident.

 

Mobile

For insurance clients: Clients have gadgets made available to facilitate the service at the company’s contact channels, providing support to the quality of life of the users. Applications help prevent diseases and provide guidance on good eating habits and physical exercise and can monitor babies sleeping in order to avoid sudden death from apnea.

For insurance companies: Concentrates applications that aim to support the client’s quality of life, improving eating habits and encouraging the practice of physical exercises, preventing diseases.

 

Investment in digital transformation allows you to:

– Improve the experience of acquiring insurance;

– Attract new consumers to the market;

– Maintain a competitive advantage;

– Stimulate the development of increasingly innovative services;

– Improve public perspective

 

This is the right time for the insurance industry to embrace a global view on innovation trends, engaging old customers and seducing new users for their services.
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