Today, the world is changing at an increasing rate, the pandemic has led to an increase in teleworking and many uses and customs have become digital. Insurers are under enormous pressure to improve their customers' practice and collaborative tactics with the policyholder. Innovation and digital transformation of insurers is critical to gaining a competitive advantage. Due to the connectivity and fast gratification provided by large online companies like Apple and Amazon, as well as other commercial services such as banks, travel agencies, etc., customers now expect insurers to provide the same instant digital access.
A few years ago, global credit rating agency AM Best announced that it would start using innovation as a rating variable to assess the financial health of insurance companies. AM Best defines innovation as a multi-stage process whereby a company transforms ideas into new or significantly improved products, processes, services or business models that have a measurable positive impact over time and allow the company to remain relevant and successful. The pace of innovation in the insurance industry is accelerating and an insurer's ability to innovate is becoming an increasingly important indicator of its success.
The leading insurance agencies have tuned perfectly to this trend and are up to date on digital innovation. Most use technology to improve consumer collaboration and provide new cost-added services to policyholders, while increasing their operational efficiency.
Customers really need that digital collaboration from their agencies, beyond the classic services they have consistently provided. They want to be able to access their policy information, obtain an ID card or make a claim from their mobile phones, without having to call the agency and talk to a service representative.
Advances in digital transformation are advantageous for the insured's collaboration. For example, using artificial intelligence (AI) chatbots to communicate with consumers, gather information, and then guide on the most correct action, either self-service through the portal, or by talking directly to a support agent. Today, AI can handle simple queries, without human collaboration, which opens up more time for agents to focus on more important tasks.
Another example can be seen in the particular home and car insurance lines, users currently have the ability to go online and get an insurance quote in a few minutes and without any major effort. This is now possible due to insurance comparators such as Doctori, where there is a digital commitment to service potential customers and that also benefits agencies in collecting statistical data that will help them always deliver the best product.
Insurers across the globe have made great progress over the past year thanks to the pressures caused by coronavirus. The pandemic disease changed a lot from how business is conducted internationally and the insurance industry had to respond to these systemic changes almost overnight. The industry quickly adapted to manage its business, resolve claims and maintain service to the policyholder in a virtual business environment. Several analysts have pointed out this year without a background as a turning point for innovation in the insurance industry.