Simplifying Policy Applications With Insurtech

Solutions that help explain the process and catch and correct errors before they happen increase productivity and improve the applications' success rate.

People looking at computers

Technology is indispensable to the insurance industry. It can make once-antiquated systems and processes usable for the modern consumer while also introducing efficiencies throughout the insurance lifecycle for carriers. Customers can get quotes by simply clicking a button. Carriers can manage coverage through apps on their mobile devices. Insurers looking for an edge over competitors should embrace the emerging tech trends offered in the industry to simplify tasks for customers and within their organizations. 

However, executing a digital transformation can be intimidating. The goal is to equip employees and customers with the tools to smooth the application process. A digital adoption platform (DAP) will work hand-in-hand with organizations to make the insurance process easier for everyone, from customers to agents and underwriters. However, if those users struggle to learn how the insurtech works, the benefits of deploying the tool and using it correctly will be lost.

The insurance application process is one of the most significant trouble spots we hear about from customers. It is often lengthy and confusing for customers, agents and underwriters alike. Using technology to simplify the process at each step with solutions that help explain the process and catch and correct errors before they happen is an ideal way to increase productivity and improve applications' success rate. This process can also cut costs, helping companies stay ahead of the competition by meeting customer expectations.

See also: Insurtech: Still No Sign of Disruption

Benefits for Customers

Customer expectations have changed drastically in recent years. They value personalization and seek simplicity, and they also expect to be able to manage their insurance needs 24/7 without leaving their homes. Insurtech allows insurers to meet those demands of customers. Enabling customers to serve themselves has resulted in many benefits, including lowering customer acquisition costs, increasing customer retention and generating more referrals. 

Online customer portals and mobile apps allow customers to independently handle most of their needs. However, there are still many customers who will need help through the application process. AI chatbots are becoming the primary way to guide customers through tricky processes. It's estimated that, by 2025, 95% of all customer interactions will be powered by chatbots. A chatbot, programmed correctly, can replace a live agent, guiding customers and executing the policy and claims process on its own. It's like having an expert over their shoulder helping them throughout the application.  

Similarly, a DAP can help deliver customers' personalization and simplicity. A DAP will help customers with the creation of a live walkthrough. These walkthroughs are step-by-step guides that help customers through trouble spots with "nudges." For instance, if a customer is struggling with entering the information needed for the application, a pop-up will not only ask if they need help but guide them in the right direction to get back on track. A DAP will also minimize the errors during the application process through AI automated data input. Crucially, it does this within the flow of work, offering contextual guidance without disrupting the user's attention to the task at hand.  

Eliminating Margin of Error for Agents and Underwriters

Deploying AI and machine learning will transform legacy insurance processes for agents and underwriters to make those processes more efficient and improve accuracy. AI-enabled insurtech can improve and even automate claims processing, all but eliminating the margin of error. Because AI-driven technologies reduce the incidence of human error among users, they eliminate costly mistakes that can harm your company's profits and reputation. A recent McKinsey study predicted that AI-powered automation will replace more than half of claims activities by 2030. AI enables insurers to process massive amounts of consumer data, creating personalized customer experiences.

Deploying a DAP on top of those technologies makes agents' and underwriters' jobs even more manageable by helping with guided workflows. They remind agents what tasks to perform at each step of the policy process, allowing them to avoid missing a step. They cut processing time along with the number of customer agent interactions, granting more time for agents and underwriters to work on other tasks. 

Underwriters have a lot to handle. They must optimize their workflows across company manuals, industry regulations and customer data while maintaining their interaction with agents. The work starts as soon as an application is submitted and doesn't end until a policy is issued. Underwriting software will improve the process by increasing efficiency. A DAP will act as a force multiplier by reducing errors and performing repetitive tasks through AI rather than taking up an underwriter's valuable time.

Companies can enjoy the benefits of AI-powered insurtech by fully embracing its potential. This technology will streamline the application process by giving customers the power to manage their own needs while driving better efficiency on the carrier end by supplying troves of customer data. It will simplify the process and reduce the time for agents and underwriters with automation that will catch costly mistakes before they happen. Finding the right DAP breaks the daunting task of digital transformation into manageable pieces while helping everyone use the tech relevant to their job in the most efficient way.

Vara Kumar

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Vara Kumar

Vara Kumar is the co-founder and chief product/technology officer at Whatfix.

Kumar co-founded Whatfix with Khadim Batti in 2014 with the vision of empowering individuals and organizations to work symbiotically with technology to maximize their potential. Kumar leads the company's strategy and vision for product development and adoptions, technology development and innovation, helping accelerate successful integrations for partners and customers.


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