Business and Finance

Impact Of Technology on the Insurance Industry

Impact Of Technology On Insurance

Technology and Technical innovations have paved way for the growth and evolution in the insurance industry. Technologies like mobiles and computing devices, GPS system functionality and engaging social media marketing in the sector of insurance has greatly lead to its flourish and advancement. Legitimate interactions with the customer and data analysis has greatly helped Insurance sector to prosper. They have brought the insurance company, profit and the customers, benefit. All this would be deemed impossible if technology did not put its hands into this sector. Since technology is useful for the growth of the company it is very important that the quality of technology being used and usefulness of technology is determined wisely . The more effective and greater the technology used, the rapid will be the company growth.

Although some companies are using the orthodox method of generating insurance by broker based methods. Newer methods of generating insurance of self, properties, commodities and so on and so forth are being introduced every now and then to facilitate higher quantity of business. Some e-commerce giants are coming to the forefront such as Liberty Insurance Corporation, Texas Farmer’s Insurance Company, which are battling with the most traditional methods of broker business with technologies that are fast and easy yet reliable. The new technologies have facilitated the orthodox company-to-broker,  broker-to-customer protocol and has taken into company to direct customer services which are obviously cutting off brokerages inference and giving the entire benefit to the customers purchasing the insurance.

Switching to advance tech-savvy methods of Insurance

Nowadays companies are being able to generate a chance of transformation of data and develop new insights and directly gain the access to customer’s individual risks without the actual involvement of the customer. Being very different from FMCG businesses , which is characterised by availability of variety of policies, insurance policies of our country has lesser products and services to offer as a result of which generating new business is an important factor in determining the prosperity of business. Traditional methods of increasing the popularity of the insurance policies like placards, hoardings, TV advertisements and other techniques are superseded by online PPC (pay per click) advertising campaigns. In fact, insurance brokers had to travel all the way from one house of a customer to the other to increase their business and instigate people to buy their insurance policies. Nowadays the online methods has accelerated the vehicle of the companies to reach out to the people online instead of approaching them physically as was the case before hand in the past. The PPC advertising campaigns are in fact  cost effective and user friendly and is easily affordable to the concerned firms.

Using mobile applications to run the insurance business

In order to facilitate the growth of the company and pave the way for company success continually, online and digital marketing methods are most preferable. It is obvious that 90% of the users are spending time on their Smartphones and on the applications available on Play Store and others apps. So creation and generation of insurance app if made available in Play store would literally Sail way for generating new business for the insurance ventures. Being available on the mobile app is like being available at fingertips of the customer and as a result of which the company can from respond to the query and avail the services to the customer promptly.  The customer will always be well acquainted with the company policies and also remains informed about the changes that are taking place in the policies whatsoever and can respond accordingly.

Reduction of operation costs in Insurance

If it is possible for a company to reduce the overall expenses and save a few penny, they will definitely go forward with that. Human intervention into operational sector of insurance regarding management of the capital an assessment of the policies has involved an increase in the company’s operational overheads. These procedures if replaced by technical advancements and apt and appropriate technology, then the overall cost spent in recruiting many officials could decrease. Moreover, to err is human, but the new technologically advanced devices are free from error and are diligent, accurate and never a subject to tiredness which may be observed in humans. Hence the automation of all these procedures can reduce the employers cost and would increase the workforce.

Insurance and Technology

Customer relationship management and Insurance companies

Customer relationship management is another way of maintaining a relationship between the customers who are already investing in the company and has potential of investment. The technological advancement known as data analysis is used by this customer relationship management to maintain the customers history so that the firm can improve their relationship with the concerned customer. It compiles data from different channels like live chat website especially social media. With the help of customer relationship management the insurance companies have developed potential to build relationships with the customers. It helps to target more audiences and to look into their needs.

Raising the capital of the Insurance Business

The funds are raised by different insurance companies by venture capital (VCs) possibilities available in the market. Companies like InsurTech, InsPeer has funded many insurance startups and has helped in their growth. These are the companies which helps in the creation of mobile apps and technologies which helps to establish close relationship with the customers and more investments are done on a per day basis. Artificial algorithms, robot devices have also helps to increase the accuracy of work and create software and technologies which shall help the growth of the firm.

Technological innovations have been a key to the change in the progress of all insurance companies. Innovation and Technology has the capability of increasing the franchise value of companies and so on. All sorts of business striving towards reaching higher ROI in order to elevate their profits. Technology has drastically help to cut on the working capital of the company and helps the company to achieve higher margins of profits through online activities, electronic transfer of funds, etc. Thus the technologies have helped immensely in the overall growth of the insurance sector.

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