Although technology dominated our lives well before the COVID-19 pandemic, there is now more focus and conversations around how embracing digital innovations will be the safest option for our future. There has been a global boost in remote learning, virtual communication and online shopping with Amazon announcing revenues of 75.4 billion dollars in the first three months of the year which is up 26 percent compared to 2019. This way of living has provided an insight into how companies and individuals will do business and shop in the new world but how will the insurance industry be impacted?
Digital transformation vs digital disruption
Like many industries, there are rapid technological advancements within insurance. Automating processes and collating accurate data can both reduce the time it takes to complete tasks such as claims payment and improve customer satisfaction by making processes simpler. COVID-19 is causing insurers to completely rethink their strategies with digital transformation and disruption. The industry has been impacted by digital processes replicating non digital processes. Digital disruption will radically reshape the way insurance is purchased and how claims are settled while reducing the need for human mediation. Recent regulator guidance also highlights the need to be far more flexible in how policies and claims are managed, so that customers impacted by COVID and similar future outbreaks are dealt with sensitively and in line with what may be difficult financial circumstances – clearly software will have a central role to play in managing this.
The knock-on effect
The travel insurance sector is in complete turmoil due to growth of claims and minimal new sales. As it attempts to return to business as usual, there will be numerous challenges to face such as processing claims within a faster timeframe. Travel insurance companies will drive efficiency by introducing digital procedures which automate aspects such as customer satisfaction responses and claims management. Pet insurance providers are already analysing data to identify which pets are susceptible to certain illnesses to deliver a more accurate and effective policy for each pet.
Aquarium is at the forefront of these technological developments, not only deploying technology to improve time to market but also deploying digital to completely rethink what is possible within insurance. Mark Colonnese, our Sales and Marketing Director comments ‘Our ethos is all about introducing and implementing technology to disrupt the status quo. We believe that deployment of technology drives better business as well as overall customer satisfaction. Although these are unfamiliar times, insurance providers that embrace technology at this time will come out of this stronger than ever.’’