The year 2020 witnessed the resurgence of many digital transformation projects. Things like customer servicing technologies, remote signing, and many other creative digital products came to the forefront. The insurance sector has profoundly transformed as well.
With the evolving customer needs, insurers also have expanded their services intuitively. Today, more than ever, they need future-ready operations and technology to reach customers in novel ways.
An insurance digital transformation tool that facilitates digitalization of processes like customer onboarding, risk management, and servicing imparts a great customer experience.
Given below are the top digital transformation trends in the insurance field in 2021.
The Emergence of No-Code Development
The normalization of no-code/low-code development is most pronounced in enterprise IT. Vendors are starting to offer enterprise-grade no-code tools that emphasize compliance and security. Consequently, enterprises can delegate such tasks to vendors while also ensuring good compliance and security standards.
These tools magnify overstretched internal resources, enhance productivity, and minimize backlogs. Their most significant benefit is the elevated time to market for novel digital products and applications. Thus, with these tools, insurers can now provide better apps speedily and increase their service quality.
Headless Tech
The most prevalent example of headless technology is website development. Conventional websites possess a back-end and front-end and a graphical user interface. The trend of headless tech goes along with no-code tools for the creation of customer-facing front-ends.
Now, insurers can isolate their front-end presentation layer from their back-end data feature to make custom digital experiences.
This trend is important for the insurance sector as back-ends are usually fraught with legacy technology issues. It renders them incompatible with new front-end experiences that customers want.
The Rise of Hybrid Cloud Architecture
The Mordor Intelligence estimates that the hybrid cloud market will hit the USD 128.01 billion mark 2025. It will increase at a CAGR of 18.73 percent over the prediction period of 2020 to 2025.
Organizations in the insurance field are increasingly embracing the hybrid cloud to leverage the benefits of public and cloud clouds.
They are right in this approach as hybrid cloud infrastructures boost speed and impart greater flexibility to businesses. They can quickly move between their tools and those provided the cloud for working efficiently.
Accelerating Legacy IT
The trends of no-code tools and headless tech have brought about a great development for organizations in the insurance sector. These technologies allow organizations to preserve their legacy IT architectures.
But it cannot hinder the enhanced digital experience for their customers and workers. They can augment legacy IT and keep improving their customer and employees’ digital experience simultaneously.
A great insurance digital transformation tool modernizes legacy systems, thus boosting the efficiency of organizations while minimizing their cost of ownership.
Support for Work from Home Culture
It is predicted that the work from home culture will stay strong post-pandemic. Increasingly, surveys are revealing that workers prefer to work full time from home.
For insurers, it implies supporting their employees to work remotely. There isn’t any place for paper-based workflows that need employees to be physically present in the post-pandemic scenario.
Real-Time Data through IoT
Internet of Things or IoT massively aids insurance technology giving real-time and highly accurate information. It, in turn, enhances risk assessment accuracy and allows insurance holders to determine their policy pricing rightly.
Although IoT implementation is still encountering various challenges, it is forecasted that a lot of innovation will occur in this place.
The insurance sector is rapidly being transformed with the adoption of new technologies. The digital has undoubtedly become the norm today. Thus, insurance leaders need to prepare themselves accordingly.