Fintech and Insurtech: Streamlining processes to ensure a seamless customer experience
For a long time now, tech-savvy professionals have been referring to the buzzword “fintech” – short for Financial Technology. This term encompasses Digital Transformation and its capacity to revolutionize how financial services are provided.
In short, the implications of this are far-reaching. We can expect to witness new business models and market players emerging, leading to simplified processes, and disintermediation of traditional services and products – all presenting a host of exciting opportunities for those who seize them.
The conversations remain similar when the topic of discussion is insurtech, which encompasses all digital technological advancements with respect to the insurance sector.
Fintech and insurtech are two powerful forces that work symbiotically to drive progress. By mutually reinforcing each other, they are paving the way for a brighter future together.
To comprehend the size of the fintech market, it’s important to understand that global investment amounted to $107.8 billion in only the first half of 2022 and exceeded $111.2 billion during the previous six months (the second half of 2021). This illustrates just how rapidly this sector is growing.
Transforming to the more particular arena of insurtech, we notice that at the end of 2021, a respectable market value was held at $3.85 billion, with estimations predicting an astounding 51.7% compound annual growth rate by 2030.
Historically, the insurance industry had been hindered by its lengthy and tedious processes. This is no longer true as now we have seen a complete shift in this sector’s digitization process.
This transition has established a discernible trajectory, leading from digital identification and authentication systems to the harvesting of data – arguably the most treasured asset in any organization nowadays – to forging an innovative bond with customers.
In this article, we will be examining three essential regions: digital identity and electronic signature; legally approved digital preservation; and lastly, CRM systems to CCM that are digitized yet personalized.
Unlock the power of digital identity and electronic signing
AGID (Agency for Digital Italy) describes Electronic Identification as a method of using personal authentication data electronically to distinguish one individual or business from another. This process offers users the ability to identify themselves online confidently and securely.
In summary, digital identity is the only way to ensure that an individual online user can be identified within a computer system. Furthermore, it’s also important since it gives proof of which person is conducting specific activities on the Internet at any given time.
Let’s cut to the chase: digital identity systems make it possible for insurance companies to onboard customers directly online without tedious paperwork, all while complying with relevant laws and regulations and providing maximum security.
The electronic signature tool is no exception to this pattern. Remotely signing documents and contracts from any type of device through digital signature solutions has become commonplace, making it essential for you to integrate these tools into your processes to improve efficiency as well as provide a more seamless customer experience.
Ensure digital longevity with secure compliance
Prior to delving into the discussion of digital preservation, it is essential to recognize the distinction between dematerialization and digitization. Dematerialization processes refer to swapping paper documents for their electronic equivalents; conversely, digitizing procedures carry an even greater level of depth.
By digitizing paper documents and analog processes, we can reduce the expenses associated with manual techniques such as postage, storage space, etc., while granting digital counterparts full legal standing. Fintech and insurtech companies are reaping numerous advantages from this shift to digital technology; not only does it save a great deal of money but also allows them to cut down on time-consuming paperwork that is often integral in the insurance industry. Digitization enables us to streamline our business operations for greater efficiency.
Imagine the time and energy it can take to find a single piece of paper amongst mountains of paperwork. Even worse, what if you only need to search for certain pieces within one document? That’s why efficiency is paramount in this situation – searching through all these documents would be so much more difficult without it.
Thanks to digitization, these challenges are no more! You can quickly and precisely locate what you’re looking for in mere moments. Best of all, consistent digital storage allows you to avoid any risks regarding damage, deterioration, or compilation errors.
Imagine the ease of accessibility to entire documents or segments when working in a digital world; this is accomplished without delay or hassle, and with minimal risks. In contrast, accomplishing such tasks through an analog form may prove slow-paced and riddled with difficulties.
Moreover, let us not forget the transparency aspect or fundamentally, the countless possibilities that can be taken advantage of by analyzing your document repository on an entirely new level. Imagine all that you could gain through intelligent data analyses of large datasets or even deeper levels of “smart data” embedded in enterprise documents.
However, digitization offers more than just fulfillment; it also provides novel opportunities for electronic filing and CRM/CCM processes that can reap great rewards.
Transitioning from Customer Relationship Management to Content-Centric Marketing
This post has delved into the realms of fintech and insurtech, particularly accentuating the delicate process of onboarding. From digital identification methods to regulatory storage within digital archiving – we have discussed numerous key components that lead us to our conclusion: this last step is perhaps the most determinative one.
Digital archiving yields one of the most useful results: a powerful CRM system that is incredibly efficient, intuitive, and can be used for exhaustive analysis. In other words, it unlocks an invaluable trove of information about your customers.
What does this signify? An unparalleled understanding of your target market.
With a greater understanding of the insured, communication between insurance companies and individuals is revolutionized. This breakthrough in Customer Relation Management (CRM) systems also has an immense influence on future CCMs (Customer Communication Management). What’s the central keyword for upcoming CCMs? Personalization.
By beginning with data-driven analysis, companies can craft personalized digital conversations with their customers. The dialogue should consider individual risk profiles and the specific characteristics, needs, and desires of those individuals. It’s essential that this data is taken seriously – within the insurance industry which has grown to become the third largest manufacturing sector yet also holds one of the highest “planned churn” rates: climbing from 19.5% in 2018 to 22.5%.
To put it simply, customer retention is the priority for businesses in this industry. Companies must strive to build a lasting relationship with their customers and develop strategies that will help them achieve this goal. With the right tools such as certification and authentication systems, electronic signature capabilities, digital preservation technology, personalized marketing tactics, and communication options at hand – companies are sure to reach their goals of keeping customers engaged.