Insurance digitalisation: more than the creation of online channels

The demands and needs of customers have evolved regarding insurance products, and digitalisation has also brought several changes. In fact, it is no longer just about traditional insurers going digital. What has changed in the insurance industry and the way it offers its products?

Development of insurance applications

It is crucial to optimise the experience on mobile devices. Applications are one of the great options to achieve this, being able to integrate everything from onboarding to customer service, registering claims, sending documentation, etc. These applications can be nourished with different technologies, such as, for example:

• Artificial Intelligence to create virtual assistants, recognise knocks or breakages in cars or homes, etc.
• OCR technology for document recognition.
• Geolocation can be useful in an insurance claim to know exactly on which road it occurred, to send a tow truck, etc.

Digital onboarding of policyholders

The digital onboarding of customers is an important step in digital insurance. This is not 100% easy to digitise, as it is necessary to verify the user’s identity, as well as to register a series of data and documentation. To register new customers online, there are technologies such as Know Your Customer (KYC) that can be used with biometrics, digital signature, etc. This digital onboarding will make it easier for insurers to improve customer acquisition, reduce workload and lower the churn rate.

Simple, understandable policies tailored to the needs of the policyholder

Digitalisation not only influences the interaction with users but allows insurers to simplify and make their internal processes and product offerings more flexible. Policies could be challenging for the policyholder to understand, with many clauses, complicated language, and coverage that is unnecessary or not tailored to specific needs.

Technology enables a new reality where moving from watertight, preconfigured insurance plans to customisable policies in which the user can choose what coverages and conditions they need is possible. The use of AI and analytics makes this achievable to calculate risks and prices, offering the customer the product they need, at the right price, in real-time.

These are some of the advances introduced by digitalisation in the insurance environment, but there are more accelerators such as Blockchain and the incorporation of Smart Contracts, analytics in decision-making and business transformation, or the role of Insurtech. Innovation is accelerating changes in the sector and will be a pillar for those insurance companies that want to differentiate themselves and achieve a competitive level in the market.