Let’s have a look at emerging fin-tech services and the way they are reshaping businesses.
Financial Technology(Fintech) is defined as emerging technology trends that seek to address longstanding issues in financial services and improve and automate these services, providing a frictionless experience for all the parties involved.
Insurance is not something people love to buy. More often than not, it forces customers to confront challenging realities. There is no profit when it comes to buying insurance, all it does is provide a hedge against future uncertainties. Given the product-centric operations of the insurance industry, it has become more important than ever to change the present dynamics.
With a rise in automated services-whether, its internal operations or B2C processes-Fintech is surely changing the product-centric atmosphere into a customer-centric one. Let’s see how:
Customized Policy Quotes:
Using large datasets consisting of behavioral patterns of customers, insurance platforms are providing a high level of customization when it comes to buying insurance. For instance, traditional insurers would place a higher quote on young drivers due to their inexperience. Now, with the customer in focus, quotes can be personalized based on a user’s driving pattern, allowing safer drivers to pay less for their health insurance.
Remember those days when talking to an insurance carrier seemed like a mammoth task involving a large number of hours spent on negotiations and speaking over the phone? Now with the introduction of chatbots and enhanced identity verification systems, one doesn’t have to go through a whole bunch of processes for simple tasks such as filing a claim. Machine learning will also analyze your interactions with carriers to enhance future exchanges, making them seamless.
Faster claims settlement:
With AI-based insurance carrier practices, not only does handling claims gets automated but the margin for disputes reduces dramatically due to the large datasets of previously handled claims that are used for solving emerging problems. Detection of fraud is another added advantage with the introduction of blockchain and smart contracts, rendering users to verify their identity for every step of the process. This will help in establishing a more secure environment for both parties while also saving billions of dollars that are lost in fraudulent claims each year.
Such customer-centric practices will help more people ease into buying insurance. Rather than being a painstaking process, a seamless transaction between the insurance carrier and its clients will increase the appeal for buying insurance in the future. As customers go online, businesses and processes too will take on a digitized approach to solving the needs of the customers.