Digital challenges in the insurance sector

By 6 de abril de 2021abril 16th, 2021No Comments

Digitalization is revolutionizing all sectors. But especially the insurance sector. According to ICEAi data, six out of ten Spanish insurance companies already have digital transformation projects in progress.

Innovative technologies result in new product categories, customized offers and real-time services. The insurance sector – as well as intermediaries, providers and technical services – are evolving their business processes to remain competitive.

There are multiple innovations impacting the sector, but the most disruptive in the digital era are four: Artificial Intelligence/chatbots, Internet of Things (IoT), blockchain and smart contracts.

Although their application will be progressive, insurers will be able to use them to monitor in real time traffic or home incidents such as accidents, water leaks or surge damage (IoT); prevent fraud through secure control that avoids duplication (blockchain); and automate claims processes (smart contracts).

Methodological changes

But what this digital transformation really generates is a methodological change for the sector. From a way of acting traditionally focused on “detecting and repairing” incidents, we are moving to another based on “predicting and preventing”. From “analyzing” customer needs to “anticipating” their demands.

This new methodology also responds to the particularities of the sector. Unlike in other industries, clients do not usually interact with the insurance provider. When this is the case, agents must manage complex issues, sometimes with a strong emotional component. There are new legal implications such as the GDRP. And user complaints can end up on social media.

Customers also want to contact the company at any time and through new channels such as WhatsApp. And they easily switch insurance providers, often for lack of personalized offers or due to aggressive pricing policies.

Using new technologies to solve these challenges through a predictive and preventive strategy is critical. AI and data analytics will greatly facilitate this transformation by helping to understand customer preferences and, above all, optimizing customer service.

Minimizing the human factor

Insurers have been pioneers in using AI-based tools to automate repetitive processes, optimize risk analysis and improve customer interaction. Chatbots, or voice and text-based digital assistants, can help customers with simple and complex tasks: from providing a mailing address to handling a claim or sending an email report.

This year, one out of every four interactions with a contact center will be handled by a machine, which will resolve 80% of queries. Thanks to this technology, the insurance sector is minimizing the human factor and optimizing its performance to offer a better customer experience, 24 hours a day.

In addition, chatbots learn from context. They collect relevant information that they provide to human agents in the contact center when their intervention is necessary, thus speeding up incident resolution times.

Soon, we will see how bots leverage information from IoT sensors (such as fitness, in-vehicle and in-home monitoring devices) to extend their contextual information and turn advanced analytics into business value for the insurance industry.

Managing hyper-connectivity

In the last five years, social media and mobile devices have dramatically changed the way customers interact with insurers’ contact centers. Calls are losing importance to web chats and messaging apps such as WhatsApp Business.

In a hyper-connected world, customers want to interact with brands at any time and from any device. Properly managing this omnichannel is also key to optimizing customer service.

Solutions capable of unifying all interaction channels (calls, e-mail, SMS, messaging, chat…), lines of business (health, home, automotive…) and types of services (advice, assistance, commercial…) of insurance companies on the same platform are needed.

In the case of Enghouse Interactive, a large number of clients in the sector (Mapfre, Allianz, RACC, Mutua Madrileña…) are already implementing this digital transformation with our solutions for contact centers – scalable and secure – that take advantage of artificial intelligence, machine learning and analytics to unify, automate and optimize customer service.

Contact us for more personalized information about the advantages of a  Insurance Contact Center.