The COVID-19 pandemic has substantially modified the way people relate, in every industry and all over the world. Furthermore, this is the starting point for transformations in both the economic situation and the labor market. Organizations that have been getting ready and invested in state-of-the-art technology will be able to successfully adapt to the upcoming challenges in the insurance industry. Which are the main issues? Learn about them in Supra World.
New Businesses, New Coverage
As the “new normal” evolves, it has become evident that some fields will cease to exist in the short term, whereas others have risen and are currently thriving. Consequently, industry leaders focus on these transformations to understand the opportunities and threats that derive from the arrival of brand new partners and competitors in the relevant ecosystems, such as mobility, medical assistance, and many others.
The issue is quite straightforward: we are either part of the change, improving the service provided and implementing innovative tools and solutions, or stand as mere spectators of the new reality. Thus, as a means to provide greater protection in today’s world, companies are beginning to offer different types of insurance, as well as new solutions for both clients and advisors.
This crisis has proved two main points: that there is no higher value than that of knowledge, and that the success of organizations will depend on their ability to stop fearing the unknown and start anticipating it.
Challenges for the insurance industry
Some of the current challenges are:
AI and automation. Some of the potential uses of AI and machine learning are the reduction of the bureaucratic process and the acceleration of paperwork. Claims automation is an example of how it can be achieved.
Big Data. Among last decade’s greatest business innovations is the need for massive data analysis. The insurance business is not indifferent to it. Big Data is used to identify, quantify, and prioritize the main risks that companies face. It is also useful to establish a link between risk management decisions and the organization’s financial performance.
New products. As the health, tourism and real estate industries have evolved, insurance companies have developed new types of policies and coverage, increasingly specific, functional, and adapted to the new world. Services that go beyond traditional insurance, such as on-line insurance purchasing and flexible solutions that adapt to this ever-changing scenery, are also gaining strength.
Blockchain. The application of Blockchain technology to decentralize processes, like claims and fraud management, keeps both customer and insurer data protected at all times.
Cybersecurity. A technological transformation will not be possible unless safety is guaranteed. That is one of the biggest challenges for the insurance industry as well as for other businesses. In our area, cybersecurity innovation comes hand in hand with data protection, reinforcement of the compliance policies, image and reputation risk management, and changes in the managerial culture to strengthen the company’s resilience.
InsurTech. The hub of disruptive startups that uses new technologies to create value within the insurance market is changing how products and services are delivered, both at the customer’s end and for intermediaries as advisors and brokers.
In an uncertain environment to which we are becoming used to, companies’ adaptability in this new context will be crucial for their success.
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