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The Impact of Digitalization on Insurers
Owing to the proliferation of technology, consumers today have got accustomed to on-demand services and like most of the thriving industries; insurance firms should implement digital solutions to remain competitive. Albeit digitalization has not reached wide-scale adoption across all industries, innovative startups are rendering unique benefits to customers by leveraging several front-end technologies. Today, insurance firms are in the midst of an unparalleled digital transformation owing to the democratization of technologies. As insurers digitalize their services, consumers are benefitted with better prices and wider options to choose to a policy.
In the past, customers used to connect with insurers on reaction basis, primarily during the renewal period or for processing the accident claims. Today, technologies such as artificial intelligence enable insurers to predict customer behavior with a much richer customer profile. This allows insurance companies to pre-empt risks and interact with customers in a more agile and nimbler manner. Adding to this, the increasing adoption of technology has also changed how consumers purchase insurance. Lately, the demands for accessibility, flexibility, and transparency in insurance products have increased to meet customer expectations. However, as the insurance industry continues to adopt digital solutions, several existing operations will be automated, which will obliterate several manual jobs. But, the overall cost benefits and streamlining of several processes will overshadow the growing pains along the way.