Insurance CIO guide to technology trends for 2023
The impact of technology on the insurance industry
Technology is revolutionizing the insurance industry. From Know Your Customer (KYC) tools to smart risk assessment and remote onboarding, no element of the insurance world remains unaffected.
On a macro level, technology gives insurance providers access to enormous amounts of information that were never available in the past. Rather than trying to make educated guesses, insurance leaders can now make decisions that are supported by real-time, reliable, granular data.
In addition, processes that used to require layers of paperwork can be streamlined and made more efficient, allowing insurers to cut costs and remain competitive in a crowded market. Even more importantly, technology can be used to drive business opportunities like new products and services or to access new audiences.
[.emph]Technology doesn’t only benefit insurance providers—it has also improved the insurance world for customers. [.emph]
Customers are now empowered to compare prices online to find the best insurance offer for their needs. The hassle around insurance has been minimized–previously cumbersome and time-consuming processes like onboarding and claim submission can be done quickly and easily and in many cases, remotely.
Technology trends in the insurance industry in 2023
Technology is already playing an important role in the insurance world, but it isn’t static—it’s advancing at a head-spinning rate and it’s critical that insurance providers understand the trends in order to prepare for the future. While it’s impossible to predict exactly what’s going to happen in the dynamic world of insurance technology, we’ve compiled four key technology trends in the insurance industry that we expect to play a key role in 2023.
Customer experience as a key differentiator
The era of lifetime loyalty is over. In the internet age, customers know they have options and are savvy about utilizing them. They carefully compare prices and services, and want to interact with brands on their own time, in their own way, and on their own terms. They expect minimum friction and maximum choice—one size doesn’t fit all.
That’s why in 2023 insurance companies will have to pay more attention than ever to what their customers want in order to keep them on board and minimize churn. The price transparency has already driven prices down and cut profit margins making it nearly impossible for providers to be competitive based on price alone. The only way for insurers to differentiate themselves is through better customer experiences.
Personalization capabilities will continue to be a key component of customer experience. By offering a client the most relevant product at the right price point, insurers can significantly improve their competitive edge, even with tight profit margins. But in order to capitalize on the personalization opportunities, insurers need smart analytics and technology to support agile work processes. They need the capacity to develop new apps and services quickly to avoid missing out on new opportunities.
Reduced dependence on tech talent
The unusual behavior of the employment market since the onset of the pandemic has created a media buzz about the so-called “Great Resignation”. As organizations try to navigate the tides of the evolving job market and are still figuring out what will happen in the employment market in the future, one thing is increasingly clear—the severe shortage of tech talent isn’t going away anytime soon. In a recent survey by Gartner, 64% of IT executives saw the talent shortage as the biggest barrier to emerging technologies, ahead of implementation costs and security risk. McKinsey reports that 87% of companies worldwide either currently have a skills gap, or believe that they will have one in the future.
[.emph]of companies worldwide either currently have a skills gap, or believe that they will have one in the future. [.emph]
In the insurance world, the problem is even more acute. The median age of insurance employees is higher than in other tech and financial sectors, and tech talent tends to gravitate to cutting-edge startups. The insurance industry, often perceived as stodgy, has a hard time competing with the startup world.
Insurance companies can prepare for the talent shortage by minimizing their dependence on legacy systems that require highly-skilled tech talent. No-code and low-code platforms can help empower employees with less technical know-how to take on roles previously limited to highly skilled workers, preventing slowdowns and bottlenecks.
Digital journey transformation
While managers and employees tend to see various customer touchpoints as separate, related to different departments or procedures, customers don’t usually make the same distinction. Customers see all of their interactions with an insurance provider as part of an organic whole and expect transitions between activities and platforms to be seamless.
Insurance providers, like brands in other industries, need to invest thought and resources in creating a coherent customer digital journey from lead generation to customer retention. Creating such a journey requires collaboration from various stakeholders in the organization—it can’t be the sole responsibility of IT. Development platforms need to be inclusive for employees in various roles so they can work together to build a cohesive and positive experience for the customer.
eSignatures are on the rise
Insurance transactions require a lot of signatures, for legal, compliance and security purposes. But as the world becomes increasingly remote, it no longer makes sense to deal with paper-based signatures. Customers don’t have patience for the hassle of mailing paperwork or bringing it to an office, and the resources required for an enterprise to manage data from physical paperwork can eat away at profit margins.
eSignature solutions make it easy for insurance providers to eliminate manual tasks and automate data documentation. They also make it easier for customers to navigate processes with convenient reminders and simple actions that can be conducted at their convenience. The need is driving extreme growth in the global eSignature market which is projected to reach $9 billion by 2023.
[.figure] $9 bn[.figure]
[.emph]eSignature market size by 2023 [.emph]
Strategies for staying ahead of the curve
Looking at the trends, it’s clear that insurance providers need to think big and embrace digital culture in all elements of their business—it’s the only way to remain competitive in today’s market. The digital customer journey has to encompass all customer touchpoints, platforms and departments, and customer-facing teams have to take an active role in order to respond to needs and opportunities in real time.
A no-code/low code strategy is also critical to success in a rapidly changing technological landscape. First of all, no-code tools make it possible for insurance providers to develop new digital applications and products faster than ever before. Insurers can respond to market opportunities and customer demand in real time, rather than waiting for a development process that may only be completed when the need has passed. This allows insurers to improve the customer experience and remain competitive in today’s tight market.
Second, no-code tools ease the dependence on highly-skilled tech employees. Non-technical employees, including customer-facing staff, can be empowered to conduct the majority of the development work, so the highly skilled tech workforce can focus on the most complex projects and tasks. Overstretched internal resources can be better utilized, reducing backlogs, and improving productivity without compromising on security and compliance standards.
Using no-code platforms, employees from various departments can take part in the development process. It becomes easier to create the collaborations needed to build a seamless digital customer journey throughout the various activities of the organization and prepare insurance offerings for tomorrow’s market.
EasySend offers a no-code platform crafted specifically for the needs of the insurance industry. Using EasySend, you can choose the right path for your organization, easily launch your organizational digital journey, and scale according to need.
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