Digital technology has revolutionized how products and services are delivered, so much so that even the traditionally resilient insurance business model is not immune to this trend. The evolving customer expectations drive insurance companies to reevaluate their business models to stay relevant. The technologically adept nature of new-gen customers has pushed insurance providers and industry participants to engage in a constantly evolving playing field, where they must compete in new and unfamiliar ways.
The rising demand for round-the-clock access, speedy delivery, transparent information on product features, pricing, and customized, innovative services for the digital era is becoming hard to ignore. Meeting these demands allows insurers to enhance their profits in their primary business. Furthermore, digitization brings improved services and faster processing times, which leads to higher customer satisfaction and retention, boosting profitability.
It is crucial to note that customers expect the same service level from all providers, including insurers. Technology advancements, including big data, machine learning, and artificial intelligence, have disrupted the traditional insurance business model, compelling insurers to adopt new digital strategies to remain relevant. Despite this, some insurers are reluctant to make changes to meet these expectations.