Industries worldwide have started implementing digital transformation strategies, and insurance agencies aren't any different. Especially after the pandemic, the demand for digital platforms increased, and over 73% of consumers want an insurance quote online. In comparison, 25% say that it is necessary.
Consistent with the demand, insurers are making big changes and implementing digital transformation. The rise of digital insurance platforms may have started late, but it is quickly catching up. More than 64% of insurance agencies wish to develop their digital insurance platforms quickly.
What are Digital Insurance Platforms?
Digital insurance platforms refer to an insurance agency operation model based on a technology-first approach. While some insurers work only through their digital insurance club, most agencies have a separate wing.
Digital insurance platform include artificial intelligence systems, machine learning, data analytical tools, and the Internet of Things (IoT). Through these tools, insurers develop a digital transformation strategy to build a customer-first approach.
Digital insurance platforms are based on three main principles:
● Data Collection and Analytics: This includes using AI analytical and data science tools to obtain, process, and store data.
● Data Source: This includes different systems for data sourcing, including IoT and CRM.
● Governing: This includes bringing value to the enterprise through model management and explainability of information.
Factors Impacting Digital Insurance Platforms
While there are several benefits of joining the digital insurance club, some factors can impact your strategy for digital insurance platforms. These factors must be considered when developing a digital insurance club.
1. Customer Experience
Digital insurance platforms can help increase customer engagement through multiple channels and improve customer experience. Generally, getting new customers and retaining old ones can cost excessively. Therefore, lead generation and customer satisfaction are crucial points of a digital insurance community.
Customers can renew their packages quickly and effortlessly through your digital insurance platforms. Moreover, digital transformation can allow claims processing to be completed within minutes.
2. Privacy and Security
Data and payment security are one of the biggest factors of a digital insurance club. When adopting digital insurance platforms, insurers must ensure that claims are genuine and run background checks. Moreover, the platforms should offer a secure online infrastructure to prevent malicious attacks.
Customers will put in their personal information and pay for their packages online. Hence, ensuring the privacy and security of your customer's information and secure payment options is essential.
3. Digital Solution
The rise of digital insurance platform is driven by digital solutions that can help integrate several tools that can help implement and manage your digital insurance club. Insurers must apply digital technologies to provide value to customers and investors.
Such digital tools include mobile applications, website portals, customer relationship manager (CRM) software, cross-channel communication tools, data collection and analytical tools, and other essential digital solutions that can help optimize your business.
Creating Your Digital Insurance Platforms
One of the reasons why insurers were late to digital transformation strategies is that they lacked a proper understanding of the intricacies that come with them. However, most insurance agencies have outsourced professional help to create their digital insurance platform and their digital insurance club. Now, insurance agencies are competing to become the first in the digital market.
It is time to comprehend and recognise why, and more significantly, how to create your digital insurance platforms in order to stay ahead of the curve in the digital era.
Wesurance is an Insurtech company in the U.K. providing a platform that empowers insurance companies and brokers to easily build, develop, and grow their digital insurance branches. Through a simple-to-use and easy-to-implement solution, you can build your own digital insurance quickly and with ease. No worrying about coding to integrate the digital insurance process into your insurance business. Learn more about us at https://www.wesurance.io/.
