Imagine you are going to get insurance for your car and there you get told to present and sign ten papers for them. Then you find out that you are expected to visit them four more times for the completion of the process. Frustrating, isn’t it?
No one likes the unvarying traditional paperwork procedures, especially in today’s world where most people are living a hasty life. Insurance companies have also realized that they cannot expect consumers who like keyless, and driverless wheels to like the tedious paperwork to buy insurance.
That is why auto insurance companies have started using modern business process automation to allow potential customers to compare multiple quotes that fit their budget.
The Conventional Process of Auto Insurance Sector
Earlier, whenever consumers were looking for auto insurance quotes, they had to follow through a hectic process that started with calling an agent for details. After getting the details, they had to meet in person for documentation. Once the documents were submitted, the underwriting process took time as all the details had to be verified, before giving a quote or approving a policy.
The insurance company can only issue a policy with appropriate due diligence as it can put the company at risk. But these days, with the advancement of technology things have improved for the better. With the help of technology, application and approval processes can be finished in just a day in most cases.
The auto insurance technological transformation is designed to offer seamless onboarding for consumers at every stage.
With technology, they can cater to clients’ specific needs such as easy access and faster policy approval. This means that people no longer have to wait for days to complete insurance paperwork when buying a new car.
DID YOU KNOW?
Automobile insurance emerged as a specialty product for enthusiasts even when automobiles were still a novelty.
Impact of Technology on Auto Insurance Industry
Here are a few points to explain how this seismic yet progressive shift is happening and impacting the auto insurance industry:
Better Risk Assessment
Insurance companies use the process of underwriting to determine whether a person is eligible for insurance or not, how much they pay for it, and the risks of insuring them.
For example, if an underwriter ignores the weather report indicating the possibility of floods, the claim from the regions impacted by the disaster will be significant. In the same way, even the tiniest information regarding the underlying asset being covered will impact the risk for the insurance business.
It is beyond the capabilities of the human brain to verify multiple statistics and information at a time but it can be done more easily with the help of neural networking and machine learning. AI enables intelligent underwriters to correlate several data points in an efficient time.
There is a chance for human error in the manual assessment but the AI does not miss any significant data points. Data points like driving habits, telematics, and social media patterns are used to offer fairer premiums. Using AI algorithms, fraudulent claims are identified and premiums are adjusted on real-time parameters for fair pricing.
Seamless Process
The whole process from general inquiry, estimates and quotes, application filling, verification, and approval is delivered through omnichannel. This allows the customer to access the insurance company’s portal or app at any time of the day and from any location without physical walkin.
The quote comparison is aided by visual media and animated assistants for an interactive experience. All the inquiries are compiled from large data sets of frequently asked questions, that will present valid points easily.
The information in the form of illustrative animations is uploaded at every stage of the sales portal which guides the customer through the whole process. Questions regarding customer services and sales inquiries are answered by chatbots.
There is no risk of personal information leakage as the consumer it is protected with encryption.
Once the documentation and application are completed, the verification is carried out by automation. Approval is offered through electronic contracts which can be signed from any location using eSignatures. The process is paperless and eco-friendly, takes a fraction of the time compared to traditional policy purchases, and is error-free leading to better compliance.
Trivia
The first car insurance policy is considered to be a policy written in 1897 although it was a horse and carriage policy modified to cover a car.
Improved Consumer Experience
One of the underrated features that technology provides in the auto insurance field is that it allows consumers to compare quotes from different providers on product comparison and review websites. Such sites provide consumers with an opportunity to go through genuine reviews from authentic consumers. It also allows consumers to share their experience of the product. It allows prospective consumers with insight to make wise decisions.
Consumers can now access online portals and apps at any time without any restrictions or geographical limitations. Easy access to the onboarding process, where all the queries are answered with chatbot assistants through interactive avatars. Because of this favorable environment, the consumers can take their time to understand finer points without any pressure or judgment of raising queries till they understand everything to make an informed decision and feel confident about their purchase.
They are willing to go with an insurance provider considering the standard of the service which is relevant and high-tech. Lighter paperwork saves time allowing the insurance advisor staff to focus more on building a long-term relationship with the customer. With personalized service, consumers feel more valued and maintain a lasting relationship with the company.
Better Sales Funnels
AI can analyze customer behavior and patterns resulting in the enhancement of traditional sales. It can create a unique experience for each person leading to customer satisfaction and better feedback from them.
AI keeps an eye on the latest trends and opportunities which can be easily missed by humans. Which leads to smarter decisions. It automatizes routine tasks like email management, data entering, etc which saves time and reduces human error.
Conclusion:
Most of us are aware of the fact that every business is keen to provide the best consumer experience as the cost of acquiring new customers is more than retaining old ones. The advancement of technologies helps this cause in various ways we have discussed above.
It can be said that as we read this article, the automobile industry is set to break its records with better innovations that are yet to be launched.
It is assumed that car insurance companies will rely more and more on AI in the future and it will result in better consumer services. Due to the significant increase in the use of AI in the auto insurance sector, questions like “Will AI replace humans in the auto insurance sector?” are raised.
The concise answer to that question is that no, AI can’t replace humans in that sector completely. Though it can perform certain tasks like responding to customer queries more efficiently than humans.
