Top Trends That Will Shape Up The Insurance Industry In 2023
When it comes to incorporating cutting-edge technologies, the insurance industry is a late bloomer. Until the digital revolution gained traction, most players in the insurance industry were content with legacy systems. However, with the rapid advancement of new-age technologies, the insurance landscape is witnessing an evolution, and incumbents are developing strategies to enable their companies’ digital transformation.
Here are certain key trends that are set to shape up the insurance industry in 2023.
1. Insurtech is witnessing a rise
According to a recent report, insure-techs are the fastest growing segment in FinTech, with a market value of a whopping $339 billion expected by 2025.
The Pandemic has increased the need and urgency for digital solutions for customers and businesses, resulting in an increase in technology initiatives. Increased internet adoption has created an opportunity for insurers to facilitate technological advancement and bridge gaps in current digital solutions.
2. Personalized Solutions
Recent surveys have revealed an increase in customer awareness pertaining to insurance. In addition, trends across various industries such as education, ecommerce, and entertainment have evolved customers to better understand personal needs and expect customized solutions.
The availability of data analytics and the increasing dependency of customers on digital platforms means that the insurance industry will need to shift from a product to a solutions approach when tailoring insurance solutions for customers.
3. Policyholders are becoming more self-serving
Self-service options are desired by approximately 81% of consumers, including insurance policyholders. They now expect to be able to do more for themselves without having to get in touch with an insurer’s customer service representative. Customers are turning to insurance technology trends as a medium to purchase policies, manage policies, settle payments, raise claims, and so on as they become more tech-savvy. While giving the consumer more power and control would vastly improve the customer experience, it would also benefit businesses by lowering customer acquisition costs, increasing insurance agent productivity, increasing customer retention, and expediting claims processing, among other things.
4. Interaction and communication via multiple channels
The growth of the insurance industry can be attributed to various intermediaries, such as agents and partners, who warrant that customers have a smooth and seamless experience from policy purchase to claim settlement. In order to make the industry more transparent and unified, insurers will continue to incorporate their systems and platforms so that intermediaries, including agents, can effortlessly address customer issues via a variety of personalised online and digital channels. Insurance companies are steadily increasing customer engagement while saving time and money by focusing on digital and omnichannel platforms. An omnichannel tool, such as an AI-based chat bot, for example, supplements actual human interaction while significantly reducing customer wait time and being available 24×7.
To Sum Up
Keeping in pace with the latest insurance industry trends helps insurers stay ahead of their competitors and keep up with the latest customer expectations. The insurance industry trends mentioned above will reshape the insurance industry in more ways than one.
At First Policy, we are focused on helping our clients attain insurance solutions which are not only tailored to the specific needs of your business but also effectively assess and mitigate risks that can otherwise affect your business unfavorably. Our seasoned insurance professionals are constantly working towards expanding their capabilities by incorporating the best trends and practices so that the needs of our clients can be met without any hassle.