Knowledge Hub

Digital technology – fueling the Insurance transformation

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp

Clover Infotech_Blog_Insurance

The digital revolution has engulfed businesses and is leaving no industry deprived of its overwhelming potential and opportunities. Digital is no more restricted to being a marketing platform, but a business enabler. Digital has become the one-stop touch-point for Gen Z and a major chunk of the of Gen Y audience for knowledge, research,  and peer reviews. Even a traditional business such as insurance is witnessing a dramatic turnaround in the way it operates and communicates with customers – both existing and potential. And the recent addition to this transformation is online advice.

All you need to do is, say the words in your search engine, “Buy Insurance”. A single click and you’ll find loads of search results; not only insurance companies that let you buy online, or better, comparison websites that do the research and compare  for you, but also suggest the best policy  as per your needs and expected benefits. This is an interesting branch of business, where companies have risen to become “business enablers and facilitators”, thus also eliminating the hassles of extensive research and decision-making for the customer.

The magnanimity of the digital influence can be gauged by the fact that about 26% of the global consumers buy insurance policies online – evidently an immensely critical statistic for sketching out business strategies for insurance companies. With approximately 71% buyers depending on digital research for pre-purchase decision-making, organizations not only need a strong digital presence but a positive online image as well. And the digital story doesn’t just end at purchase; today more than 40% consumers are influenced by digital and social media channels during the consideration phase. Another insight, and a potential game changer, is that 90% of the car insurance business generated globally comes from retention. Hence, today’s insurance companies need to realize this important fact that has been going unnoticed until recently – it is as important to have a digital customer retention and conversion strategy as business development. On the contrary, almost all marketing expenditure is focused on acquisition.

Simplified policy documentation, insurance premium calculators, online expert advice and chats have made insurance. Also, social listening, web behavior, driving patterns, and healthy living habits, all of these fuel analytics engines with the critical customer data. It is this fuel that drives business decision-making and enriches customer experience. It is this amalgamation of all the digital assets and services of an organization that helps in building a stronger customer base. While doing this, it also helps in ensuring a healthy customer retention ratio and enhancing the digital experience of the customer.

Leave a comment

Your email address will not be published. Required fields are marked *

Subscribe to Our Blog

Stay updated with the latest trends in the field of IT