Technology as a Growth Driver in the Insurance Industry August 2013 BLOG POST
Emerging technologies provide numerous benefits to insurers in the form of driving growth and reducing operational costs Cutthroat competition among players, and pressure on margins and bottom-line pose several challenges to insurers – making them get engaged in available technologies and finding a right fit for their business solutions. As the insurance sector is recovering from the consequences of the economic downturn, the focus is now on growth. Insurers across the globe are deploying information technologies such as social media, mobile technology, telematics, big data predictive modeling and cloud computing. These emerging technologies provide numerous benefits to insurers in the form of driving growth and reducing operational costs. Majority of the insurers have already implemented one of the available technologies like social media, mobile technologies and cloud computing in some way. Companies have also tied up with social media experts to streamline their social media strategy. US insurer Allstate has tied up with Hearsay Social to support its social media strategy and local agents in their use of social media. It will enable agents to share useful information on social networks and assist in building relationships in their local communities. Allstate’s strategy in social media engagement is expected to provide brand protection as well as business results across every major social network at every level of the organization, from the corporate brand to local agents. Leveraging social media and mobility across the value chain
Technology as a growth driver in insurance industry
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Today, social media has changed the way consumers interact with businesses. Consumers have been continuously emphasizing on ease of communication; they expect organizations to get involved in online conversation for solving queries, providing feedback on products and services, etc. To meet these expectations, insurers have started strategizing their social media initiatives. Companies have also come up with mobile applications so as to serve customers differently by providing access to policy, file claims and pay premiums, etc. There lie several opportunities across the entire value chain. Data analytics and automation can help increase sales opportunities and mobility, and integrated technology can provide convenience and service and social media is a boon for marketing and customer interaction. In the present scenario where companies are desperate to cut costs involved with traditional media, technologies like social media and mobility can improve insurers’ marketing ROI as well as keep operational cost down by providing a low-cost channel and keep down the expense ratio.
Technology as a growth driver in insurance industry
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