By FRANCIS NGARI
If Covid-19 has taught anything to anyone in business, it is the
importance of digital capabilities to
deliver services. The ensuing social distancing and limited physical interaction that has come with the pandemic has forced individuals to work from home as they grapple with quarantine and lockdown, while still trying to move on with their day to day lives.
deliver services. The ensuing social distancing and limited physical interaction that has come with the pandemic has forced individuals to work from home as they grapple with quarantine and lockdown, while still trying to move on with their day to day lives.
Covid-19 has created a good tipping
point for digital transformation, ushering even unwilling individuals,
businesses and industries into the digital world where services and
communication happens remotely primarily via digital tools.
Family
gatherings and social events are now happening on social media
platforms. Supermarkets and most retail chains are providing online
shopping and delivery services, churches are conducting services online
and school is happening via video conferencing.
While
the insurance industry has been adopting digital tools albeit slowly,
this season has created an urgency to strengthen each firm’s digital
presence if they are to continue working effectively, retain business,
access new markets and offer exceptional customer service.
Digital
tools can bridge the social distancing divide between agents,
employees, customers and other industry players. By employing more ways
for customers to interact remotely with the insurer, digitising internal
processes and using technology for communication, policy review and
purchase, bill payment, claims reporting and processing, ensuring
digital delivery of policy documents, statements, e-receipts and other
operations businesses can ride the Covid wave and emerge stronger,
better and even more profitable.
Today’s customers are digital natives who use multiple devices
to get things done quickly and easily. They expect to interact and do
business online. They communicate via various channels, research and buy
products online, review products and companies on social media, attend
meetings on video conference and air grievances via social media.
They
are used to personalised attention, speed and control and expect the
same levels of quality and service with their insurer as they get
elsewhere. Insurance firms, therefore, cannot lag behind on the digital
front. They have to go where their customers are and where potential new
markets are.
They have to adopt digital tools that
allow their mobile and tech-savvy customers to safely and easily manage
their insurance needs wherever, whenever - be it to find the right
policy, get a quote, pay a bill, track a claim or report a car accident.
This
is what digital transformation for insurers is about. It is
capitalizing on the power of technology to create or modify processes,
cultures and customer experiences to meet changing business and market
requirements. It is using digital technology to revisit business models,
acquire customers to new channels and create new user experiences. It’s
about using technology creatively to achieve customer focus across an
organisation.
The digital tools that will see insurers
reap immense benefits include Artificial Intelligence (AI), Internet of
Things (IoT), Machine Learning, Big Data, Predictive Analytics, Mobile
and Cloud-based services.
IoT-enabled devices and
wearables collect valuable data from customers leading to more
personalized services and products. Sensors for example can prevent a
driver from making a phone call while driving. Health trackers allow
consumers to reap benefits for behaviors that promote health and
wellness. For example, data from telematic sensors can help customers
get better terms for their health policies if they are physically active
or discounts for safe driving. In-vehicle devices and drones are now
allowing a fully automated claims process, registering an accident and
automatically triggering a first notice of loss entry making the process
seamless and stress-free for customers.
Self-service
platforms and mobile apps and payments will help insurers offer service
everywhere and anywhere. Customers can choose when, where, and how to
interact with their insurers. These platforms can be designed to offer
customers differentiated experiences, features and value.
Big
data and analytics offer huge potential for products that are more
flexible and personal. Insurance companies, by analyzing data, can
recognize patterns and identify opportunities for precise, intuitive and
proactive solutions and strategies, creating highly dynamic,
usage-based-insurance products tailored to individual consumers hence
earning loyalty with customers.
Artificial intelligence
and machine learning will streamline tasks and identify insights that
humans would have missed, creating efficiency and speed in operations.
Policies can be bought in minutes, underwriting can take seconds because
of machine learning capabilities, claims can be processed instantly.
Customer service is enhanced with live chat and digital bots.
Since
customers are using multiple channels like text, email, web chat, phone
and sometimes in-person calls and visits, an insurer who is able to
interact via multiple channels will be able to serve customers more
efficiently. Automated insurance agents, such as chatbots and advisors
can provide customers with personalized services that will suit their
unique needs and requirements.
The writer is the Head of Digital, Resolution Insurance Kenya.
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