Realizing digital transformation in the insurance industry

Share this with your friends
  •  
  •  
  •  
  •  
  •  

Insurance organizations are trying to adopt digital transformation practices to gain competitive advantage and stay in businessIncreasing digital transformation practices across industries, cloud solution adoption and the use of technologies like AI and ML have brought in drastic advancements in how businesses work forcing insurance organizations to revolutionize their offerings and provide value to their customers.  

 Startups in insurance technology like Lemonade Insurance are gaining ground in the market with their quick solutions and rapid claims processing. This forces traditional insurers to rethink how they can digitally revamp their models leveraging the power of the data they’ve gathered to get ahead in the game.  

 Consumer habits are changing every day. This is forcing insurance businesses to keep in constant touch with them to know what is changing.  

 Digital transformation in insurance allows for this with its quick data processing and analytical capabilities. By closely studying these changes, insurers can draw an understanding of changing consumer trends over time and even make predictions of future behavior.  

 

Insurance digital transformation must concentrate on 

 

Customers 

Today, businesses are turning their focus to the customer. Insurance organizations should use technology solutions that enable customers to connect with them and get issues resolved easily to realize digital transformationCustomer-centric solutions include using chatbots for customer service and mobile or web applications that simply claims processes.
 

Infrastructure upgrade 

Most big insurers follow traditional model of operating. But, with new technologies like RPA, AI, big data and IoT changing core processes like underwriting and also the way customers see insurance services, it’s about time that the industry responds to this expectation and embark on digital transformation in insurance 

  

Filling skills gap 

Digital transformation raises the need to find the right talent and skills to accelerate the pace of adoption. 
Insurance players would also have to extensively train their existing talent on the new platforms and methodologies to make the most of the transformation.  

 

Nuvento’s digital insurance solutions are developed to fast-forward insurance agencies into the digital age We support your business infrastructure upgrades and redefine the potential of your offerings to meet present and future demand.  

 

Our digital insurance offerings are a complete business solution to enhance the operational efficiency of core insurance processes such as finance, procurement, agent/broker management while reducing costs and boosting customer and employee satisfaction.  

 

Our insurtech solutions can be tailored to meet the day-to-day requirements of a wide range of insurance services, which includes health insurance, auto insurance, life insurance, property and casualty insurance. 

 

How  digital transformation in insurance can benefit insurers 

  • 40% less administration costs 
  • 40% less customer complaints 
  • 100% improve in turnaround time for policyholder services 
  • 60% happier customers 

 

Digital transformation solutions for insurance claim automation 

Low cost low touch claims 

This is a revolutionary claims automation methodology that leverages data and technology. Our digital claims system is equipped to carry out claim processing starting from the First Notice of Loss, to making liability decisions, damage assessments and payments, with limited human intervention.  

 Benefits: 

  • Reduction in processing time per claim 
  • Reduction in processing cost per claim 
  • Upto 4 manual touches removed from claim process 
  • 3-10 times more claims processed per adjuster 

 

Robotic and AI-based FNOL 

This offering replaces traditional call center-based FNOL, which requires extensive data gathering, and increases operational costs as well as claim cycle time. Digital FNOL leverages on AI, ML and RPA to provide customers self-service capabilities via automated damage estimation, claim validation and fraud detection.  

 Benefits: 

  • Reduced claim intake expenses 
  • Fast claims settlement 
  • More customer retention 
  • Improved loss ratio 

 

Vehicle damage estimation 

Get immediate and accurate estimates for repairs on vehicle damage using our advanced AI-based image recognition algorithm. The estimate amount will be sufficient enough to cover the repairs at a quality repair shop.  

 Benefits: 

  • Determine if damage amount exceeds deductible 
  • Assess all levels of damage, from scratches to collisions 
  • Submit photos of the accident online for a precise quote 
  • Connect to authorized auto body repair facilities in your area for free estimates 

 

Digital loss inspection 

Our intuitive smartphone self-service apps allow us to access loss remotely. Digital inspection of losses begins when the insured person captures photos, videos and provides written descriptions via mobile apps.  Our apps area specifically designed to incorporate the wide variety and complexity of claim types and possess the range of inspection and estimation skills required to reduce loss adjustment expense.  

 Benefits:  

  • Adjuster and insured can share HD pictures and videos in real time 
  • Streamlined damage inspection of fast-track and low severity claims 
  • Self-service inspection tools 
  • Lower-cost inspectors 
  • Centralized estimated writing  

 

Digital transformation solutions for managing the insurance ecosystem 

Insurance web and mobile app 

Insurers and policyholders are connected 24×7 with web and mobile applications. Our insurance mobility solutions provide self-service options to the customers with an intuitive portal to make payments, upgrade and purchase new policies, and get instant support.  

 Benefits:  

  • Payment reminder notification 
  • Flexible payment models 
  • 24×7 AI-enabled virtual assistants for customer service 

 

Digital broker and agent management system 

Our cloud-based broker management system leverages modern technology to connect brokers and insurers. We automate the insurer-broker ecosystem by enabling paperless brokerage, seamless exchange of information, generating informative data-driven insights that increase the efficiency of brokers and saves time and money spent on outdated processes.  

 Benefits:  

  • Quickly identify business opportunities via a single view 
  • Drive digital connectivity between brokerage and insurers 
  • Ensure the timely delivery of documentation 
  • Improve productivity and efficiency 

 

Digital claims documentation 

Documents needed for processing claims can come in any form, type, size and format. These documents can be highly structured, with definitive fields, or can also be unstructured as a handwritten letter. Nuvento’s documentation system converts and stores critical data from disparate document sources and makes them completely searchable and readily accessible digital files to ensure that you have the right information you need to make the right processing decisions whenever you need it.  

 Benefits:  

  • Reduce time and costs associated with manual adjudication 
  • More timely responses 
  • Improve claim processing speeds 

 

OCR-based billing 

The goal of every organization is to serve its customers efficiently, while reducing the cost involved in the process. OCR-based billing system is a perfect tool that further enhances the speed and efficiency of claim processing while reducing the costs and human labor involved. Our system uses a combination of image recognition algorithm and AI to scan official documents required for issuing claims and converts them to digital documents by electronically isolating and recording information provided in different fields. 

  Benefits 

  • Reduce costs by eliminating manual procedures in conventional data capturing methods 
  • Reduce errors and omissions in filing 
  • Enables more accurate predictions and analysis by creating structured data for AI software.  

 

Digital transformation solutions for mitigating risks involved in the insurance industry 

Digital underwriting 

There is constant pressure on insurance underwriter to gather and combine the right data and analyze the risk involved while issuing policies. An underwriters ability to perform at his best directly impacts the business. Our digital underwriting solutions utilize AI and cognitive computing to analyze structured and unstructured data from documents for reducing errors and discover indicators of known and unknown risks. This easethe burden on underwriters and enables them to process large volume of policies with quality risk analysis. 

 Benefits 

  • Better risk analysis 
  • Improved process efficiency 

 

 Insurance Fraud detection 

Fraudulent claims are a financial burden for insurers and covers a range of improper activities like staging the incident, misrepresenting the situation, falsifying the cause of incident and extending the damage caused. We can leverage on advanced data analytics technology to mitigate these challenges. Our fraud detection algorithm can predict a potential fraud and alert the experts whenever unfit data is fed to the system.  

 Instances the fraud detection algorithm may consider: 

  • Identifying excessive billing in medical insurance 
  • Identifying age or gender inappropriate treatments 
  • Identifying duplicate claims 
  • Multiple or inflated claims detection 
  • Detecting fraudulent family members involved in claim 
  • Highlight failure to disclose pre-existing conditions 
  • Identify brokers with unusually high claim payout numbers 
  • Review beneficiaries with multiple policies 
  • History of rejected claims and credit scores 

 

Claim segmentation and triage analytics 

big share of claim processing time is spent for determining the complexity and finding a suitable adjuster to take it to the next steps. Our claim segmentation and triage algorithm can create a complexity score for every claim in real time. Low complex can be easily fast-tracked to speed up the overall processing time, while complex claims can be assigned to specialized adjuster based on the availability.  

 Benefits: 

  • 20% less claim processing time  
  • Efficient management of agents 

 

For insurance businesses to get started on the transformation journey, they must closely evaluate their existing and framework to enable a smooth transition.  And, that opens up the need to identify the roadblocks as they happen. 

Therefore, to bring them to the fore, they are: 

Challenges traditional insurers face in digital transformation 

Rebuild trust by delivering great experiences 

Insurance is now an industry driven by customer experience. A survey by EY has found that 40% of consumers decide to continue insurer relationships based on the quality of the experience. Now, customers want to purchase insurance just like they purchase any product on Amazon, by just looking at their options and clicking “Buy Now”.  And they want to do it on the channels they’re on like mobile, laptops and so on. 

 Together with this, the agent and broker portals that are difficult to use, greatly affecting the user experience. Therefore, the challenge would be in reworking insurance delivery models and making easy-to-use models of agent and broker portals. 

 

Align experience and new ways of reaching customers 

Insurtechs are transforming the way customers approach insurance and this has shaken up the predominantly traditional industry. Insurtechs are leveraging the power of technology to provide quick and personalized solutions. To top this, traditional players need to think of how they can deliver beyond what the startups are delivering. 

 The challenge for insurers would lie in leveraging the deep expertise and experience they have and aligning delivery with digital models of reaching their customers, policyholders, agents and partners. 

 

Delivering a seamless experience across countries 

Traditional insurance players operate in multiple geographic locations. Therefore, they need to understand the different regulations set by different countries and need to work on delivering a seamless experience for their customers across locations.  

 The challenge for insurers would be in customizing their solutions to meet customer requirements across the different locations that they’re present in.  

 

Connected digital ecosystem 

The rising competition in the insurance sector is making it necessary for businesses to connect with other companies to grow the potential of their services.  To deliver an end-to-end service to a customer, insurers would have to collaborate with various products or services. 

 This poses a unique challenge for insurance players as they would have to connect all the different components an insurance agency requires to ensure a smooth experience for agents, brokers, customers, and merchants.  

 

There are several challenges facing insurance companies as they move towards digital transformation.  Insurance companies need to focus on identifying where the opportunities lie among these challenges that they can use to gain competitive advantage and overcome the hurdles to deliver great experiences to customer and consistent delivery of solutions.