Why Is Insurance Technology So Important?

insurance technology

If you work in the insurance industry, you’ve probably heard what some people think about you, with words such as “old,” “antiquated,” and “heartless” being some of the nicer things said. Why do you think this is the case? A lack of innovation can lead to a very poor customer experience. If you don’t make your customers happy, they will find an insurance company that does. This is why embracing insurance technology is so important.

insurance technology

In the last few years, the insurance industry has made strides by adopting new technologies. Thanks to the emergence of new technology, such as traffic cameras, self-driving cars, drones, and smart homes, insurance companies are able to collect a mountain of new information they’ve never had before.

All of these technologies, and how they pertain to the Internet of Things (IoT), continue to grow, and the potential appears to be limitless.1

This growth comes with its own particular set of challenges, though. As your customers adopt progressively safer vehicles, drive down regulated roads, and pick up more fool-proof methods of avoiding catastrophe, insurance premiums will go down universally. While this might make your customers happy, it ends up shredding your bottom line. Because of this, you need to keep all of the customers you can.

The good news is that this is another area where innovation is taking place. While lower risk drives down premiums, the business world at large is also increasing the emphasis on customer retention, locking in on their biggest missing puzzle piece – Customer Communications Management.

Keeping Your Focus Customer-Centric

We’ve reached a new era, one where your company needs to be hyper-focused on your customers. A great customer experience can mean the difference between increased revenue and losing a customer.

More customers want access to their insurance providers around the clock, and they want to control the conversation. In response, providers are implementing automated assistance for their call centers, customer profiles are being stored in the cloud, and communications are being delivered by different channels according to customer preference.

While it’s no longer a “new feature” for companies to provide customers a choice in how they receive communications — SMS/text messaging, email, and print, for example — what is becoming an emerging technology is dynamic documents with interactive customer data visualizations. Your customers’ interactions — as they hover over colorful charts and graphs — can be monitored to improve future communications with targeted ads and appealing displays.

Embracing the Internet of Things

There’s a good chance you’ve heard someone use the expression “Internet of Things.” There’s also an equally good chance you have no idea what that expression means. Don’t worry, you’re not alone. The Internet of Things, or IoT, is simply this: connecting everyday things to the internet that you wouldn’t normally think to connect to the internet.

internet of things; IoT

Think about all of the things you had in your house 10 or 15 years ago. Now, think about those things now. Have you said “Alexa, turn on the TV” recently? Or how about, “Hey, Siri, set the timer for the sprinklers to 3 p.m.” It’s the Internet of Things. Your TV, refrigerator, central heating/AC, lights, robotic vacuum cleaner, etc., can all be controlled via a wireless connection by your phone, your voice, your smartwatch, and more.

IoT gives insurance providers significantly more data about customers, which in turn means insurance providers can give their customers personalized, omnichannel communications.2 Vehicle tracking devices can adjust premiums in real time. Heating systems and washer-dryer setups can potentially help underwrite home insurance policies. The amount of data captured by a smartphone alone is still not fully tapped. These are things that translate into lower rates, but ultimately to higher Customer Lifetime Value (CLV) when implemented and applied in the right ways.

This is the other side of interactivity — not just how it enhances the customer experience but also how it improves your experience of the customer. With greater options for interactivity, you can ultimately know your customers better and create more specific personas, continuing to develop products and messaging tailored directly to their specific wants and needs.

Overcoming the Fear of Big Data

Everything mentioned above — all of this insurance technology — produces data. A LOT of data. More data than your company, or any other company for that matter, has ever had before. So much information that, when you really start to think about it, could possibly induce a panic attack.

big data

Take a deep breath and relax. All of this information is extremely valuable to your insurance company. Sure, parsing what seems like an infinite amount of data circling around different people and objects with which your customers interact can seem very daunting. It doesn’t have to be. With the proper customer data management tools, you can take all of this data and create something that’s extremely valuable to achieving your long-term revenue goals.

Customer Communications Management solutions — or CCM — will update, remove duplications, and clean all of the valuable data you collect. Big Data visualizations will also allow insurance companies to gauge entirely new parameters around customer identity.

With so many things feeding databases, it’s becoming easier to nail down averages, project tendencies, and separate customers into types, which allows insurance companies to better engage customers with their own data. This might not only provide more accurate risk assessments, but also lead to the development of new, more sensible products.

Innovating Further with Insurance Technology

Many insurance companies already use a Customer Relationship Management (CRM) tool or other data management platform to learn more about their customers. Perhaps your company is one of them. This is an important part of embracing insurance technology. From a customer loyalty standpoint, however, this is only half of the circle.

Customer Communications Management provides your business with the other half of that circle. Insurance providers who have a solid CCM solution in place are not only taking in loads of data from all of the new software-bound items at their disposal, but they’re also putting it to the best possible use. These insurance providers are able to use this new data to inform every last detail of their communications, whether in a confidential statement or promotional ad.

Customer Communications Management is what culminates from all of the innovation around customer data and business process management. It’s being adopted by insurance companies able to understand the cyclical nature of their customer relationships, and how important this is in the long-run for both revenue and customer satisfaction.

The main driver of the customer-centric movement is the industry-wide realization that revenue and customer care are never at odds, as the leaders always seem to be the ones promoting a top-down unified brand, but also a personal user-focused philosophy. Insurers everywhere can save time and money with omnichannel communications.

Insurance Technology and the Ecrion Solution

customer communications management solution

Hopefully by now you understand the importance of your company moving into the modern age with insurance technology. If you’re able to give your customers what they want, keep them happy, and still manage to see a substantial increase in ROI, isn’t that the very definition of a win-win? And, let’s be honest, as mentioned earlier, can you really afford to lose customer right now?

At Ecrion, we understand all of this. That’s why we built our software with your company — and your customers — in mind. An Ecrion solution can help give your company the edge over your competitors by giving your customers exactly what they want, how they want it, and when they want it.

From interactive documents, to omnichannel delivery, to document composition document automation — and more — the Ecrion platform delivers. Our goal is to help you and your company have a better relationship with your customers. It’s a goal we take very seriously and one we’d like to share with you.

If you’re ready for your insurance company to take the next step with insurance technology, we’d love to hear from you. Contact us today by email at sales@ecrion.com, by phone at 866-418-3838, or fill out our contact form. We look forward to helping your company on the path to better customer communications.