Oct 25, 2019 | Cogneesol |
INSURANCE INDUSTRY Moving Innovation from Concept to Precept October 2019 Prepared & Presented By: Cogneesol Inc. INTRODUCTION Evey business witnesses innovation at one point or the other owing to the changing customer demands or the need for enhanced product quality. The insurance industry is no different as new concepts are being introduced due to the innovation and use of the latest technology and the lifestyle changes of the customers. So, let’s get started and figure out how the changing times are paving the way for innovation and regulations in the insurance industry. Insurers need to innovate with respect to the competition in the market but there are times when they are forced to bring out a change due to the demand of regulatory organizations. A number of such organizations witness the changing lifestyles of the customers and the need for refined insurance products and services. This is quite the opposite of how we define innovation. but with regulatory bodies making the change a must, insurers are left with no other option but to innovate. Customers Driving the Real Change The National Association of Insurance Commissioners (NAIC) formed an Innovation and Technology (EX) Task Force to assess new developments in InsurTech, along with educating and informing the regulators. Innovation & Regulation! What’s the Opportunity Scope? IN DECEMBER 2017 In December 2017, a new model was presented by the American Insurance Association to the National Association of Insurance Commissioners, which stated creating a regulatory sandbox that could eliminate the fear of violating regulations while testing new digital innovations. Insurers need to keep compliance with the sandbox regulations when trying to innovate new products and services for the customers so that the innovations do not fall outside the changing customer needs. The Sandbox Concept SANDBOX CONCEPT States like Wisconsin, Connecticut, and Illinois favor regulations stating they help provide guidance to the insurance innovators. While stateslike Wyoming, Arizona, Vermont, and Utah are taking the initial steps towards establishing a sandbox environment. The sandbox game-changer came in May 2019 when Kentucky passed the sandbox bill for the first time for developing solutions for creative risk management. ARE INSURERS PREPARED? Understanding On-Demand Insurance Needs Creating the On-Demand Business Model incorporating the use of technology Key points within this section When it comes to staying compliant with the emerging customer needs,insurers and InsurTechs are well ahead of the time due to the following strategies adopted by them:- Growing Your Spirituality- 3 What's inside this issue: Understanding On-Demand There have been rapid changes in the way customers buy products and services. To match this pace, insurers use previous statistics in order to create products and services which meet the current demands, along with satisfying the risk levels. Insurance Needs Creating the On-Demand Microinsurance- Smaller risksfor a particular time period, episode, or event. Sharing Economy- Sharing of assets like rideshare (Uber, Lyft), homeshare (Airbnb), bicycle sharing (Ofo, Mobike), and more. Continuous Underwriting- Changing of terms and pricing owing to the updationof an individual's risks. The insurance business models are being reinvented to meet the present customer demands, with creation,underwriting,distribution ,pricing etc., getting complete makeover. The new digital model comprises of the following:- Business Model Incorporating API-based platforms and multi- channel access to upgrade business processes. Multi-channel access with portals and mobile apps for channels and customers. IoT(Internet of Things), Artificial Intelligence,& Machine Learning for providing personalized products to the policyholders. Robust data and analytics potential to analyze platform data to support changing on- demands in the form of claims underwriting, prevention,& more. The requires meeting customer demands timely and efficiently. For this, using the following technology becomes a must for the new business model:- new business model The Use of Technology This makes it evident for the insurers to hold training sessions for the new talent, along with useful inputs from the experienced employees, to meet quantity and quality at the same time. The New Talent & Training Need In order to meet the new demanding insurance challenges, insurers need a lot of new talent. It is not just about hiring manpower to meet workload quantity but quality as well, and to meet quality with perfection; hiring top talent is essential. Now,here is the main concern; hiring new top talent who are technologically advanced will definitely add value to the organization, but they still lack the expertise & industry knowledge which their experienced peers possess. Your first day of school can at times be difficult. Remember to trust your instincts and just be yourself. 42%-Embracing partnerships, InsurTech, and ecosystems. 30%-Focused on digital strategies for customer engagement. 39%-Embr cing platform and API economy. 37%-Creating a future business. Leaders In the present scenario, successful insurance leaders are the ones who have outshined their peers by adopting the following strategies:- This makes it clear that if business owners want to enhance business growth, they need to move with the changing customer demands and streamline their business operations according to the current and future trends. The Future Insurance Pathfinder undefinedAre you finding it difficult to manage the back-office processes of your insurance company owing to lack of time, manual power, or technical expertise? If yes, you need not worry as Cogneesol is there to support you completely. Apart from the above- mentioned ,we will aid you with:- Policy management Commission management Insurance Accounting Leading Outsourcing from the Front outsourcing benefits Claims Processing Cogneesol Inc. Conclusion This brings us to the conclusion that customer demands are changing with time, and so are the insurance regulations, paving the way for innovation amongst the insurers. However, due to the fierce competition that exists between insurers, focusing on product quality and customer service is imperative, rather than spending time on managing unproductive back-office tasks, which can easily be outsourced. 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Insurance regulations come into play with changing customer trends & demands. Read on to gain valuable insights into how insurers tackle the same with innovation.
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