Why the Insurance Industry Must Go Digital
The emergence of the digital era has made our lives as modern people, especially for those who live in urban areas, easy, fast-paced, and dependent on the Internet and Technology. Businesses and stakeholders are also being challenged by this phenomenon. Take the example of Uber, where some have said that it has killed conventional taxis. Or the case of online shops, which have predated retail shops on the streets and in malls. Chatbot
The fact is, it was not Uber or the online shops who are at fault, but rather the taxis and the retail shops that had failed to adapt fast. They could not see that the era is changing. They weren’t customer-focused but were in their comfort zones of what worked in the past. It is crucial now more than ever to keep your customers within reach and provide them with what they need and serve them fully because customers are the lifeline of businesses. Service-based businesses, such as insurance companies, are most culpable to disruption. Failing to adapt is something that these businesses cannot afford to do.
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If we talk about the prospects of insurance FinTech in Southeast Asia (SEA), we first have to know that Asia is considered as an underinsured region despite nearly half of the world’s population living there. This absolutely makes Asia one of the greatest battlegrounds of insurance companies as there are still lots of untapped potential.
Especially in a culture that is rich in social media like Southeast Asia (SEA). Insurance FinTech has a bright future in this region. Insuretech may have bloomed in SEA a little while ago, but as bright as it is. The complexity of the application of insurance FinTech is slowing down the process to spread this new system. It is because in this sort of business, one has to pay more attention to customer engagement and knowing how to give the best service to meet customer expectations is essential. Chatbot
In Singapore, the insurance industry has become part of a debate not too long ago and this country had become a heated battleground in SEA. Not to mention, support from the Singapore government is also pushing this business forward. The Monetary Authority of Singapore, the British Government (UKTI), along with other 15 insurance giants (i.e AXA, AIA, IAG). Have promoted digital applications to the insurance industry.
The effect is massive, as not only did Singapore flared; startups have also started to sprout throughout the corners of SEA. An example was GoBear, a search engine which help consumers compare across insurance, credit cards and loan products, which has extend its service to Vietnam and other countries in the region. Chatbot
Also read: “WebRTC: An Introduction“
There are five obvious reasons why digitizing the insurance industry can leave you with benefits:
1. Encouraging clients to take an action:
By going digital, you’ll gain more possibilities and opportunities, especially through engagement with clients and potential clients. You can provide information faster and make it accessible for a longer period of time (you can even do it 24/7). You can offer some free tips, such as how to conduct a better lifestyle to attract customers to health insurance so as, to avoid getting sick. This will strengthen the relationship between clients and company, making them comfortable and trusting towards you. Chatbot
2. Smart Claiming:
With the application of FinTech in insurance, people will not need to come personally to the office to send or receive their claims. Now, they can just use their mobile phones or computers to access the service. Especially if the technology utilises chatbots and blockchain to automatically trigger and settle simple claims. Aside from cutting the human resources cost, you can compete with other companies in terms of service.
Surely by digitizing the system, and by installing chatbots, and real-time communication. You can cut operational costs for the long term, allowing more sustainability. By reducing operational costs, you can promote your services with cheaper insurance policies. Furthermore, with usage- and behavior-based pricing trends that have become a thing right now, it is important to adjust the pricing to minimize losses. For example, in automobile insurance, to judge the pricing of the insurance.
The company will review how clients drive and their behavior. To put it simply, the safer one drives, the cheaper one has to pay for the insurance. To collect the data, you can also use use chatbots to ask more personal questions (if we do it via humans, it may take more time than using bots especially if the number of clients is massive). This has occured in several markets, especially with the spread of e-commerce and digital rights management.
In Indonesia, with so many people living here, potential clients are undeniably colossal. It can be a challenge, but at the same time it is a big opportunity. If one can manage it well and find the right formula to reap its benefits. Qiscus can help you to tackle that challenge. We can help you to digitize your system in a way that suits your company the most, especially in insurance FinTech. Get a free consultation for a start by contacting us at www.qiscus.com or e-mail [email protected].