Ensuring Electronic Signature Lawfulness for Insurance Industry in United States

How to eSign a document: electronic signature lawfulness for Insurance Industry in United States

in this video we are going to talk about digital transformation strategy for the insurance industry so before starting this video like this video and subscribe to my youtube channel for future updates the expectations of customers are driving innovation and the digital transformation of the insurance industry to a large extent and when we talk about the functions of an insurance company to deal directly with customers or have an effect on customers we are referring to what is known as the insurance value chain the importance of modernizing and digitizing the insurance value chain cannot be overstated in the current era but what exactly is the value chain in the insurance industry all of the components of insurance that contribute to a company's overall value are included in what is known as the insurance value chain consider it to be the sum of all the points at which customers and carriers interact with one another these interactions also include functions for customer self-service which are of the utmost importance to the modern consumer when we talk about the value chain in the insurance industry we are referring to the following product management retailing and wholesale trade new business and amp underwriting claims payments assistance to customers the procedure for implementing digital transformation in the insurance industry the tools and applications that make up digital insurance such as artificial intelligence ai internet of things iot machine learning predictive analytics big data and cloud-based services are what have sparked the digital transformation of the insurance industry even though these tools are absolutely necessary for the process of digital transformation there is a great deal more to it than merely downloading and installing new software the idea of tackling all of these digital updates and implementing new systems can seem daunting expensive and risky to carriers that have a complex mix of legacy it systems these carriers may have to choose between updating their legacy systems or implementing new ones but you have nothing to worry about because a cloud-based infrastructure enables you to transform your business digitally at your own pace while utilizing an agile multi-phased approach for instance you could begin by deciding which segment of your business you will focus on first and then look for solutions that will enable you to successfully collect and integrate all of your data in a single location regardless of where you begin one of the most essential aspects to keep in mind throughout your digital transformation is the capacity of your technology to continuously update and stay up to date you can experience limitless innovation when you use evergreen solutions because these solutions are powered by modern deployable technology that is always up to date and always capable of handling the task at hand the most important advantage the digital technology offers in the insurance industry is that it gives you the ability to discover new strategic solutions for your customers before those customers are even aware that they require them there are a few tried and true steps you should take to make this process as smooth as possible even though digital transformation can take time even if you're looking to make a digital transformation all at once there are a few steps you should take to make this process as smooth as possible stage one computerize all existing procedures the automation of previously performed tasks is the initial step on the road to the digital transformation of the insurance industry customers have come to anticipate high levels of speed and individualized attention both of which would be extremely difficult to provide in the absence of automated functions there is a significant opportunity for improvement in this area and many processes within the insurance industry can be made more productive and efficient with the application of digital technologies and methods such as by computerizing the underwriting rules and generating referrals through the use of more effective workflow processes by opening the claims coverage automatically and setting reserves based on predefined rule sets implementing functions for live chat and providing real-time automated responses to questions and concerns raised by customers using technology to automate billing and communications stage two optimize for strategic focus the second stage of digital maturity for an insurer is optimizing for strategic focus which is also known as strategic optimization this stage goes beyond the automation of tasks and focuses on identifying critical elements that differentiate carriers in the marketplace and leveraging digital technologies and strategies to optimize processes that support those market goals additionally this stage focuses on leveraging digital technologies and strategies to optimize processes that support those market goals take for instance product excellence some insurance companies are optimizing their operations around product innovation with the goal of configuring and developing new products to meet the requirements of particular markets such as the commercial specialty market speed to market some businesses are focusing their optimization efforts on the ability to make changes to their rates rules and product offerings more quickly than their rivals customer and agent experience as well as service some companies are focusing their optimization efforts on becoming the most convenient to do business with typically by way of a preferred channel in the same vein as the automation stage the strategic focus stage has value in and of itself and it is not necessarily just a stepping stone to another stage in the journey that a carrier will take indeed the ability to differentiate oneself in the market can determine the success or failure of a company stage 3 true digital transformation the third and final stage of digital maturity is the complete transformation of a business into an open connected platform model this stage represents the most advanced level of digital maturity platform companies such as lemonade and metro mile are organized to meet evolving market needs by orchestrating connections between buyers sellers products data and service providers this is done in an open informed iterative and dynamic cycle of supply and demand sometimes platform companies are referred to as ecosystems although it is obvious that this level of development cannot function without extensive digital underpinnings the model requires more than just technology in order to function properly it requires a new way of thinking and operating and it represents the complete transformation of the organization and the approach that is taken to go to market for an insurer true digital transformation places the requirements and goals of the customer front and center in all of their decisions and processes changes the way an organization operates by moving away from separate internal and external business units each of which has its own unique collection of data and processes and moving instead toward continuous real-time communication and the sharing of data enables fluid connections to be made between the constantly relocating market participants in a fundamental way the relationships between partners competitors and suppliers among other parties bringing your customers the benefits of digital transformation in insurance the divide between insurance companies that have digital capabilities and those that do not as widening at an alarming rate it is not a question of whether or not to replace legacy core systems rather the question is how to do so by moving to a software as a service sas model for their core information technology operations a large number of insurers particularly small to medium carriers and those with smaller pools of tech talent from which to draw are effectively leapfrogging the competition this is especially true for smaller companies insurers are able to immediately use and benefit from more functionality for digital communications data-driven decision-making and predictive analytics as a result of pre-integrations as well as the always ready and continuously updated state of sas platforms sas also frees up your i t staff from repetitive and non-value-added responsibilities such as maintenance and upgrades allowing them to focus on other business challenges these challenges include things like optimizing customer experiences and getting ready to use new data sources such as those obtained from telematics and third-party providers sas also allows you to focus on other business challenges when carriers move forward with insurance digital transformation supported by a fully scalable sas based platform they can anticipate reaping an endless number of benefits as a result of their efforts the following are some of the first positive signs that can be attributed to digital transformation for the majority of insurance companies procedures that are standardized reduced expenditures productivity in sales rapidity of market entry omni-channel integration let's take lemonade for example lemonade a company offering home insurance policies is a pioneer in the insurtech world where its use of machine learning ml goes beyond satisfying customers and driving efficiencies to underwriting risks and managing claims despite its exponential growth lemonade scalability is questioned considering increasing customer demand and limitations around availability and precision of data lemonade's unique business model lemonade's business model is based on a transparent fee model fast claim settlement and social good the insertec company communicates its fee structure with its customers to achieve trustworthiness and transparency two key attributes missing in the insurance industry collected customer premium is utilized by lemonade in the following manner twenty percent flat fee for lemonade 40 for reinsurance to cover major claims 40 for claims any surplus goes to charity apart from its transparent fee model lemonade differentiates itself by replacing agents with bots that run insurance processes from end to end however more than half of lemonade's claims are still being handled by humans given their complexity which means that lemonade still has a long way to go forget everything you know about insurance is the slogan that greets people who go to lemonade's website in 2015 lemonade a tech company based in the united states came into the market to change the game their big goal is to make insurance a social good instead of a necessary evil so they've been working on a service that fits right in with the 21st century not just in terms of technology but also in terms of putting people before profits since lemonade meets customer needs while also taking society as a whole into account first of all they got rid of all the traditional paperwork would you like to make a claim just open your device and send it immediately all of their services which right now include property and liability insurance can be accessed from any laptop or smartphone you can get your own insurance policy by going through a simple easy to understand process their online portal handles every part of your relationship with lemonade second lemonade used artificial intelligence to cut the time it took to file a claim from weeks to just a few seconds once their anti-fraud algorithms check the claims about 30 percent of them can be paid immediately a team of real service oriented people takes care of the more complicated claims the real game changer though is that lemonade treats premiums as money that belongs to the customer and not to them customers still pay a premium each month but the big difference is that at the end of each year lemonade gives all unclaimed premium money to a charity chosen by the customer by only taking enough to cover costs and pay employees their main business isn't making money it's making a difference for everyone they serve they gave more than five hundred thousand dollars to different charities last year customers and insurance companies trust each other a lot more because of this simple idea lemonade is building a strong honest relationship with its customers while also making long lasting changes for the better in society as a certified b corp lemonade is showing the insurance industry that the only way to stay relevant in the future is to really care about all the people your business affects lemonade follows a customer-centric experience approach with a financial model that leverages technology while trying to minimize conflict of interest with customers leveraging technology every process on the platform from marketing to onboarding leverages technology to both improve customer experience and mitigate risk alignment of our interests in the lemonade model the company gives away variable premiums and as the customer purchases a policy they can designate a charitable cause which is where lemonade gives the residual premiums from their policy subscription-based model lemonade follows a subscription-based model to smooth out its revenue generation products renters and homeowners insurance pet insurance give back feature lemonade donates leftover money to causes our customers care about reinsurance service through which the reinsurer agrees to cover a portion of the claims of another insurer the primary insurer in return for a portion of their premiums what do you think about this video do let us know in the comments section below if you enjoyed this video and want to hear from us again be sure to hit that subscribe button before you go