Digital transformation the buzzword

Evolving disruptions and ecosystems have seen organizations adapt to new market realities

The insurance industry is undergoing a massive digital transformation. Technological advances like Machine Learning, AI, Blockchain are the key enablers in the insurance space. In the last couple of years, there has been an upswing of these advances in almost all the spheres of the insurance business.

These disruptors are improving the insurance customer experience by leaps & bounds. Despite the fact that it is difficult to anticipate the full utilization of Artificial Intelligence in this industry and replace specific actions with automated intelligent machines, market leaders are optimistic and confident when it comes to reaping the benefits it entails. On the other hand, telematics is very popular in motor insurance space but it can do wonders in the life insurance segment. Existing wearable tech could be adapted to provide insurance companies with up-to-the minute statistics about the policyholders living pattern. This will help in understanding the customers and their insurance needs.

Digital transformation has been the buzzword in organizations over the last few years and it has forced them to change their business models to adapt to market realities. The interesting thing is that this change is being led by the customers — by their behaviour and unique needs. Digital technology has transformed consumer habits — mobile devices, apps, machine learning, and automation allow customers to get what they want, when they want it. Whether it is social selling or data-driven marketing, these have caused a seismic shift in customer expectations, resulting in a new kind of modern buyer. For a customer-centric organization it is a business imperative to provide a consistent experience to ensure highly engaged customers in a digital first world.

We are in the midst of the Fourth Industrial Revolution where a fusion of technologies is blurring the lines between physical, digital, and biological spheres and is disrupting every industry in every country. The predominant emerging trend that we are seeing as an outcome of this revolution is the move from a product to services paradigm. The positioning changes from selling a product to selling solutions to a problem. As products get democratized, consumers are willing to pay for a service layer allowing organizations to use it as a differentiator and to extract additional value. What we will also see as a result of this is a shift from ‘moments of truth’ to that of a customer journey. This will have profound implications on what customer centricity really means.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

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