The insurance industry is in the midst of transformational changes that not only includes digital focus but also involves multiple categories of insurance which did not exist 5 years back. Every business is running to the forefront of this technology revolution. Customers are embracing digital channels and buying products, making payments. This also increases the interest for a humongous amount of data that is being generated from these digital customers, devices, IoT and more.
By 2021, digital transformation will add an estimated USD1.16 trillion to Asia Pacific’s GDP, and increase the growth rate by 0.8% annually, according to a new business study released today as per Microsoft Recent research.
There has been a dramatic acceleration in the pace of digital transformation across the entire lifecycle of insurance. These innovations in the insurance sector will enable us to overcome the challenges insurance businesses are facing for decades due to legacy systems, manual processes, traditional risk assessment models, time taken for the process, errors and a lot more.
Artivatic’s in-house built Insurtech focused solutions are enabling next-gen transformation in terms of how to distribute products to customers, in-depth risk assessment with use of environmental, internal, historical, location, activities, digital footprints, devices and more, instant decision making based on needs, instant claims assessment and automation and understanding each and every entity (end-user or businesses) to an individual level and then providing the right benefit and price in real-time.
Insurance is now being seen as protection than just tax-saving investments earlier. Insurtech innovation will be having the next top trends:
Digital Transformation at Organization Level: With changing ecosystems, the transformation at the organization level will not be just about technology but also on skills, thought process, design essence and more importantly understanding the need to convert into value. The pressure to rebuild tools or even transform the workforce is critical for the organization actively seeking to diversify beyond plain vanilla products and launch new business models that vertically integrate the value chain. Artivatic’s solutions enable insurance, broker, re-insurance and health businesses to develop new products which focus on the need than just certain standard benefits to everyone. These tools are built based on empathy, ethics, transparency, data, importance and critical needs. Digital transformation like the way policies are getting issued, internal data flow, internal communication, generation of data insights from abundant documents/information available internally, unified systems connect internally to interact with each process, human and existing systems are some of the critical aspects that Artivatic enables with less time and effectively.
Alternative data, IoT, Connected Device Infrastructure and usage-based insurance (micro/on-demand/sachet/Sharing/Gig): Customers are embracing digital channels and with that adoption of various apps, Smart Devices, IoT devices, smart homes, connected cars, smart logistics and more, more and more data is getting generated which was not even available 5 years back. As per Gartner, there will be 25 billion connected devices by the end of 2021, producing an immense volume of data. Data is the new fuel for businesses to have a digital transformation, building new-age solutions to the customer need, in-depth analysis and predictive models. Artivatic’s platform collects alternative data from smart devices, social, web activities, location, trends, reports to develop new age and personalized risk assessment solutions for each business. Artivatic’s platform helps in understanding the user needs, usages patterns and so helping to create in usages-based insurance for critical needs like health protection, vehicle insurance, rent sharing insurance, sharing economy like bike-sharing, ride-sharing, freelance insurance, contract insurance, SME insurance etc.
Branchless or agentless sales and distribution – D2C: Engaging customers is more important than just selling the policies and hence businesses want to connect with customers directly. Artivatic’s data-driven and decision-making distribution solutions enable the ecosystem to thrive for direct channel sales, distribution to build better engagement and experience to the customer. Direct engagement with digital-first customers through platforms is another critical component of growth strategies for insurers across the region. Forward-looking executives take a long-term perspective on direct and digital investments, recognizing they need the right capabilities to be successful in the future.
Dynamic Underwriting and Instant Claims with Transparency: The increase in data and digital awareness enabling both businesses and customers to realize the importance of a quick and personalized way of doing business together. Existing legacy systems, processes or rules will no longer be applicable for future as with the change in customer behaviour, data, environment, ecosystem, the need is changing and this means new systems like Artivatic’s behavioural underwriting and claims decision platform that understand these changing behaviours, data points to assess risk better at an individual level and provide right pricing and benefits. This will be worth noticing in future with these new-age solutions, that assess each individual in a different way and hence so their data and needs. These new-age systems will be dynamic and will provide an instant assessment to customers and engage them. Customers are investing or buying insurance with the fact that they need to claim this when the need is there. Therefore, it will be important to engage the customer to help them during need without any hassle. This is something Artivatic focuses and enables these businesses to ensure the same. These changes will impact the way existing business work and a new way of processes need to be functional in coming time. Transparency and Trust will play a critical role to enable these changes in future. The customer wants to find out value during each interaction and also want to ensure that insurance companies keep their trust during need with full transparency in terms of pricing, benefits, terms, facts and keep updating them with any changes during their association.
The receptive response among consumers during the present time based on Artivatic’s learning shows that digital transformation efforts are headed in the right direction, as companies are providing bespoke solutions that better meet policyholders’ needs and bring state-of-the-art products and services to market. The extremely high expectations of consumers in the region for seamless and personalized digital experiences inspire a great deal of innovation for the future.
ARTICLE WRITTEN BY: LAYAK SINGH
Layak Singh is the CEO & Founder of Artivatic. Artivatic is a part of our Batch 3 Insurtech Program in Singapore.