How Modern Insurance Policy Systems Are Reinforcing the Insurance Industry

In order to deliver a better customer experience, insurance companies need to integrate systems and platforms that allow for seamless conversations across channels. Imagine being able to change your quote while on the phone, receive personalized options via text, and give helpful advice to customers. You don’t have to be a tech guru to enjoy the benefits of modern insurance policy systems. Read on to discover more about these systems and their potential to improve your customer experience.

Underwriting controversies

According to a recent study, a third of insurance executives believe that ecosystems are the future of the financial services industry. Compared to traditional businesses, ecosystems are more streamlined and scalable. Insurers should leverage technology to meet customer needs across the entire value chain. In a recent survey, 79% of insurance executives said they are preparing for this transformation. This is the right time to start thinking about the future of your business, and modern insurance policy systems are helping make this a reality.

Insurance companies want you to buckle up, but they do not want you to go bungee jumping. While there are still risks associated with not buckling up, the risks are increasingly clear to most people. This gives insurance companies the ability to associate the premium they charge with risk exposure. Furthermore, individuals’ behavior is increasingly cost-conscious, which increases insurance premiums, but this can benefit the economy. Nowadays, more consumers are paying attention to these implications.

Impact of microservices on user experience

Microservices are becoming more popular these days. Even big name companies like Netflix and Amazon use them. These microservices enable developers to make technical decisions quickly and independently. They also simplify data management, as services are decoupled and independent from each other. One example would be an online store’s billing and authentication services, which may need to share data. If the services do not share data, they could cause duplication or consistency problems. A good rule of thumb is to keep data sharing to a minimum.

Insurance companies should move away from monolithic systems and embrace microservices. The main reason for this is that monolithic systems hinder the speed of application development and user productivity. Microservices enable faster policy processing, with a better user experience. Solartis’s rating microservice eliminates the three-minute premium return time. A microservice-based rating system can also be tested on a sandbox before implementing it in production.

Traditional insurance companies are under increasing pressure to innovate to stay competitive. Many carriers are hampered by monolithic applications and outdated technology. Achieving the agility of modern microservices means leveraging existing investment in technology while enabling innovation. With this, insurance companies can make use of their existing infrastructure. Microservices enable flexibility, agility, and cost savings. This is an important benefit for modern insurers.

Benefits of a CX strategy

As the insurance industry moves towards a more customer-centric model, more companies are embracing CX initiatives. According to IBM’s Elevating the Insurance Customer Experience study, more than half of all insurance executives feel that their organizations do not have a CX strategy. This is an indication that there is a great deal of room for improvement in the insurance industry. A CX strategy is vital to improving the customer experience across the entire customer journey, from the initial contact with the insurance company to the renewal of their policy.

The insurance industry is not as digitally-savvy as other industries. However, WhatsApp has become one of the most popular messaging platforms, with over two billion users. That makes it the ideal CX platform for the insurance industry. Many consumers now want to communicate with their insurance brands via messaging apps, and insurers can take advantage of this by creating an intelligent digital experience. This will allow them to better understand their customers and build trust.

Insurers must be able to effectively interrogate their books of business to understand which customers to retain and which ones to lose. With this information, they can tailor their service to retain and attract customers. It is important for insurers to remember that retaining customers is the fastest path to business growth. For example, a recent Invesp study showed that it costs five times as much to acquire a new customer as it does to retain an existing one. This means that insurers must stay competitive to retain customers.