Digital Transformation in the Insurance Domain and Its Effects on UX and Security
Technology is changing the way the insurance industry conducts business and is encouraging implementation of new policies for emerging digital threats such as ransomware. While on one end, technology developments mean better solutions and service to consumers, it also introduces new risks. However, if you want to eliminate the risks of airline terrorism, you don’t stop airplanes from flying. Instead, we secure airplanes with ample security measures to mitigate risks. Similarly, while opening up to technology, most companies are prone to risks. So while evolving with technology, one should be careful and move forward with technology by keeping the security in mind. In order to have a Security roadmap, the C-suite should be aware of such risks and not be swayed by the promises of technology and focus exclusively on putting the digital agenda ahead while ignoring the risks related to security. Hence the following should always be kept in mind while considering security policies:
• Leadership acknowledgement
• People awareness
• An evolving checker mode for feedbacks
• Response team in place
The reason why security is important is because it gets directly translated to Customer Experience. I would classify customer experience to 2 things:
1. Effort from customer and sellers
2. Turnaround time
For instance, regardless of the type of the insurance, CX depends on the customer details that is collected, the effort put into, the ease of which the client can make an informed decision as to the type of insurance he chooses. The digital world has made the customer promiscuous and he expects everything to happen instantaneously; whether it is policy issuance or credit card issuance or even opening a savings account. If not instant, they demand a guaranteed time. A client will invest with 100 percent conviction into those BFSI institutions that guarantees a quicker turnover time.
Although the insurance industry is somewhere in the middle of the pack when it comes to digital transformation, AI, IoT, and Mobile have already rocked the domain. For instance, institutions that provide car insurance are able to derive and process information regarding the kmph of the automobile, the braking intervals, and the average speed rate with which the user drives the automobile thus enabling the institution to fix the premium amount accordingly. Although this is yet to impact life insurance, the age is not far behind.
The international market has responded more effectively to the technological disruption than the Indian market has. But there are some players in the Indian market like ICICI, Max life insurance, Edelweiss and especially those that have an international counterpart are faring better in the Indian front. For instance, ICICI has an app that helps to insure the two wheelers with just a mobile app. Thus the transformation is sure but sporadic.