The COVID-19 pandemic is impacting businesses worldwide at an alarming rate. In this rapidly evolving situation, insurance agencies need to be on their toes to assess the situation and plan ahead. How they respond to the challenges now will ultimately decide how they fare in the post-pandemic era.
Taking pointers from past market experiences, it is likely that the technology-savvy agencies will win the race against incumbent agencies that employ traditional manual practices. But how is the coronavirus pandemic motivating insurance agencies to rethink their approach towards facing the turmoil in the global economy?
- Pressure on their investment portfolios due to market turbulences
- Regulators are urging insurers to go easy on businesses leading to delayed payments and hindrances in cash flow
- A decrease in premium volume as more and more businesses are shutting down
- There is a high demand on the agency staff’s time as customers are calling for help, calling to talk about their coverages. True Insurance advisors are needed to empathize with the client and help them in any way possible
How Can Automation in the Policy Checking Process Ease Operations?
Estimates state that an increasing number of companies are looking to invest in AI and automation to make the best out of the post-coronavirus economy. Here’s how automation can be the much-needed boon for insurance companies in the midst of this crisis:
- Ensure E&O compliance
In the time when businesses are striving to stay afloat, insurance agencies that adapt and adopt to modern tech will certainly fare better. Companies are already functioning with less staff owing to the social distancing guidelines and with deep-rooted manual practices, accuracy, and efficiency are sure to take a backseat.
In a situation like this, choosing smart InsurTech is the best coverage against E&O risks. For insurance agencies looking to cut costs during this crisis, automation can drive savings and enhance customer engagement by ensuring foolproof accuracy.
2. Shift focus on insurance consulting
As discussed above, in the most common cases, pandemics are excluded from insurance policy coverage. It has been seen that a number of states are coming forward to make insurance companies provide coverage for interruptions in business continuity and related losses for claims resulting from the coronavirus crisis. The situation is bleak and hence, businesses are now in need of insurance consulting help from top domain experts.
For the experts in such insurance agencies, the pandemic is very demanding on bandwidth. Automation of the policy checking process would take care of the predictable, repetitive processes, freeing up time for the key staff and letting them focus on tasks that demand their expertise in the field – helping clients with consulting advisory during these trying times.
3. Outsourcing options lose viability
Many insurance companies have been relying on outsourcing processes to lower their workload. Externalizing was also being of help by freeing up time from the hands of the key staff. But in the time when coronavirus had not raised its ugly head, this option was viable, but not anymore. This is primarily because as the pandemic hits countries off-shore, Governments may need to shut down businesses at the outsourcing destinations, leading to further disruptions.
Policy checking automation ensures that the entire process does not depend on the availability of staff. Even with reducing productivity due to remote work, BOTs can automate and run processes any time, without being affected by external disturbances. This means the work goes on with excellent efficiency, accuracy, and zero dependencies.
Read more about why insurance agencies are opting out of outsourcing in 2020 – From Outsourcing to Automation – How Insurance Agencies Are Shifting Focus to a Technology-Driven Experiential Economy
4. Reducing room for error by cutting down manual processes
The coronavirus pandemic has given rise to financial losses and a stretched workforce. Additionally, the crisis can be overwhelming for employees, leading to a lack of concentration that in turn affects productivity and accuracy of work.
The most viable option is to look for technological transformation strategies in policy checking that ensure no room for error by doing away with manual processes and ensuring zero people dependency. Businesses are trying their best to keep afloat and hence, accuracy is key to enhancing customer experience.
Experts predict that the COVID-19 pandemic will serve as a game-changer for businesses, compelling them to undergo technological transformation with special emphasis on automating repetitive tasks. The insurance industry will certainly not lag behind in this pursuit, especially when automating policy checking is giving insurers a competitive edge in a turbulent, unpredictable market.
Drive digital transformation by automating policy checking. Try us out over a risk-free 20 policy trial.