How Digitization Is Transforming Insurance

The Covid pandemic has accentuated the demand for next generation tools in the insurance sector. Tech-enabled tools like Application tracker, Instant OCR, Mobile App, WhatsApp, Speech Recognition enabled IVR, Digilocker are getting popular in the industry making way for the next generation tools. Together they will take the industry to a different trajectory of growth. Being a data intensive industry, technological advancements will prove to be a boon as manual processes get converted into automated ones. Digitization can help insurance companies reduce process intricacies and unleash untapped potential. Needless to say, costs will get reduced and process efficiencies will go up.

There are three things that can account for competitive advantage in the insurance sector – first is customer satisfaction which is a subset of how quickly customers are serviced in the system (this is also measured via Net Promoter Score-NPS in the advanced countries) in other words, ‘cycle time’. The second aspect is cost especially costs associated with the claim settlement process. The third is the ability to scale up based on the market demand. As COVID cases rose, hospitalization was at an all-time high and so were the insurance claims. For the insurance industry claim processing and claim…