What challenges do insurance companies face in the digital age?5 min read

Insurance companies

n today’s digital age, users are more demanding of service companies. This is especially true for insurers, where customers often deal with complex policies and large sums of money.     

In this sense, there is an emerging need for using technology to create better sales strategies. In fact, InsurTech companies are the ones who are currently setting the pace for customer service in this sector.    

If you are an insurance broker and you are passionate about technology, then read on! In this article, we’ll take a look at the main IT challenges facing the insurance industry and give you some tips on how to overcome them.     

Slow and inefficient processes    

Insurance companies are one of the most regulated businesses in the world. This means that insurers must handle several processes and paperwork to manage customer requests. While this represents a challenge, it also offers an opportunity to improve their strategy using technology.     

For example, insurers can automate their repetitive tasks to streamline service and improve the customer experience. Some of the solutions that can help in this regard are chatbots, artificial intelligence, and systems to manage customer service.     

Another option is the digitization of contracting processes. In this way, customers will be able to make their transactions online without going to a physical office.     

Resistance to change    

Technology is constantly evolving, and if insurers do not adapt, they may become obsolete. For instance, many customers are now using the Internet to purchase insurance services. Therefore, these companies must offer efficient online services.     

Professional salesperson selling cars at dealership to new buyer

In fact, according to a study by Boston Consulting Group, 75% of potential customers will only contract insurance services if the company offers a simple, digital process.     

On the other hand, it is also vital to keep up with the latest technological tools. For example, you can use telemetry and internet-connected sensors to collect data on customer behavior, and offer a more personalized service. 

Insurers’ information is unprotected    

Insurance companies have one goal: to offer protection to their customers’ values. So they must ensure that their information is always safe not only online, but also in their offices.    

You can protect your business’ data by implementing an encryption system and tools to help you manage vulnerabilities. Likewise, your staff must be prepared for any leaks. This way, they will be able to act quickly in case of emergencies such as cyberattacks or data breaches.    

Another strategy you can use is to create a contingency plan in case of a computer attack. This will help you minimize the damage and quickly recover lost information.    

Difficulty in developing a connected ecosystem    

Consumers perceive insurance companies as traditional organizations with vast knowledge and complex processes. While this reputation is true to some extent, it can also make these companies appear slow to embrace digital changes and new technologies.     

To compete effectively in today’s connected world, insurance companies must implement new digital solutions. Consequently, your users can communicate using several contact points according to their products or services.

Blue piggy bank and wooden sign "mortgage" house model    

By designing ecosystems that integrate multiple communication channels, you will be able to serve your customers better. Additionally, you will find it easier to meet the demands of today’s society, and understand how your services interact across multiple contact points.    

The irruption of InsurTechs    

For years, insurers have largely resisted innovation. However, this has changed with the rise of InsurTech. Since these companies are using technology to offer products and services that are more convenient and affordable.    

As a result, traditional insurance companies are feeling the pressure to accelerate the pace of innovation to remain competitive.     

To survive in this new reality, insurers must invest in new technologies and rethink their business models. As a result, they will be able to access new markets and adapt to customer needs.     

Insurance companies use outdated systems    

Outdated systems obstruct digital transformation, which poses a serious challenge to satisfy customer needs. These systems also limit insurers’ ability to innovate and respond quickly to market changes.     

To solve this problem, you must invest in new technologies that integrate with the systems you currently use. Hence, you can gradually move away from obsolete programs and adopt a more modern approach.    

You know the challenges! Now we’ll show the best way to face them  

If your insurer’s efficiency is affected by these problems, the best solution is to implement a service desk software. With this tool, you will be able to centrally manage all your customers’ requests.     

Two happy young attractive owners of car, elegant salesperson at background.

This system comes equipped with programmable chatbots, which will help you streamline your processes. Additionally, you can also easily integrate it with other systems to boost the productivity of your employees.    

Furthermore, it allows you to create an online catalog with all the services of your company. This way, you can simplify the search process and improve your customers’ experience.    

With Freshservice you can streamline all your insurance processes    

This Freshworks’ solution allows you to manage your customers’ requirements through tickets and automate repetitive tasks. This way, you can keep your company up to date and focus on improving your quality of service.    

With Freshservice, you can track and evaluate all your company’s contracts and assets. All this in order to streamline your workflow.    

This software also allows you to visualize a large number of metrics. Hence, you can create customized reports, and have a comprehensive view of what is happening in your company.     

Would you like to implement this system in your insurance company?    

At GB Advisors, we help you integrate these and other technological solutions to automate your business processes and boost sales. We offer you personalized attention with the installation and configuration of any software.     

You will also receive advice from our group of experts, who will guide you step by step so you can make the most of all these tools.     

What are you waiting for? Contact us now! 

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