The market for insurance providers is ever-changing. In 2019, Millennials have surpassed Baby Boomers as the largest living adult generation, making up over 32% of the global population.
Many forward-looking insurance companies have seen the impending shift in demographics long before it happened, prompting them to adopt technologies that can better serve their respective markets. And this proved to be a smart move, as the expectations and needs of today’s customers are vastly different from the generation that came before them.
For one, customers these days are comfortable with digital technologies and are familiar with the conveniences they bring, and they expect their insurance providers to fully utilize modern solutions as well.
For another, their values are markedly different in that they place priority on personalized products and are typically willing to share their personal information in exchange for options that are more catered to their requirements.
To meet these needs, providers must move away from legacy systems and embrace an insurance management system that makes use of current technologies that will allow them to offer a more personalized approach without necessarily making their internal processes more complicated.
The ideal platform should have the following features so that it can enable an insurance company to respond to the demands and needs of the people and organizations they cater to.
1. Policy Administration for Individual and Group Insurance
In the past, the products that insurance providers offered their clients were typically one and done, meaning they were not usually subject to customization options. It was enough for insurance providers to prepare products that are markedly different from each other to respond properly to the needs of client groups or classes.
This strategy, however, no longer adequately meets client expectations in the age of personalized plans. Individuals and group users demand hybrid products that offer long-term optimal efficiency.
However, insurers who still rely on legacy systems will not be able to meet these expectations without complicating their internal processes.
Insurance providers can offer personalized insurance options and assure quick processing by switching to a rule-based insurance management system that makes full use of digital technologies.
Such a system allows insurance providers to come up with modular products for both individual and group use, and in case they need to update their products, they only have to come up with rules that they can implement across the products and services that meet a particular set of standards.
This, in turn, gives an insurance provider the capability to immediately calculate the cost of custom-built insurance products while reducing the time it needs to implement changes and process claims that have been filed by group and individual customers.
2. Data Integration and Reporting Capabilities
Data plays a big role in the development of insurance solutions, creating ideal experiences for customers, and even achieving compliance with regulatory bodies.
It’s essential, then, for insurance companies to have easy access and a clear view of the information that they collect from their customers, how their products and services are being utilized, and other parameters that can significantly impact their business.
These will make it much easier for insurance companies to come up with new products that respond to the unmet needs of the market and update current products to better suit the changing times. Improved reporting capabilities will also enable insurance companies to adhere to the standards set by regulatory bodies and protect their data and other assets from financial criminals who may want to exploit any weaknesses in the system that they are using.
3. Insurance Data Exchange with Service Providers and Producers
While insurance providers collect a lot of data on their own and many customers volunteer their personal data to get more customizable services, insurance companies still exchange significant volumes of information with their partner service providers, such as hospitals.
Relying on old modes of communication in the digital age can slow down this process, to the detriment of the customer, the service provider, and the insurance company.
After all, if there are delays in transmitting and exchanging data, the insurance company won’t be able to access the latest information about their product utilization and get insights into the latest trends in the industry.
Today’s core insurance platforms make use of critical data streams that enable stakeholders to share and access information instantaneously. These channels can also be integrated with solutions to automate key aspects of the application and quoting processes.
This will provide customers with quicker response times and facilitate the necessary processes between the insurance companies and the services providers that they are partnered with.
The digital revolution is in full swing, and insurance companies that are quick to embrace the changes that this brings stand to reap its benefits.
It’s not yet too late for traditional insurance providers to switch to modern technologies that will help them reduce the time and cost of providing their customers with the services they deserve.
Checking out their options today will help insurance companies connect better with the changing demographics and ensure that their processes can keep up with the demands of the tech-savvy generation.