E-insurance is the use of internet and information technology to produce and distribute the insurance services. E-insurance is providing insurance coverage through an insurance policy, in which all request, proposal, contract, negotiation will be performed online. E-insurance will reduce managerial and administrative costs through the process of business automation, and will improve the managerial data. By selling insurance policy directly will reduce commission paid to middlemen (of course part of this commission should be spent to attract customer and marketing.
Cost reduction in competitive market, lead to reduce insurance premiums, and allow people and prospective customers to buy more insurance, which results in greater penetration of insurance. In short, in the last century, using E-commerce has been the major activity of developed countries. Developing countries also are moving quickly towards accessing and using it. However, applications of E-commerce in insurance companies yet to be exposed in the third world. E-insurance as one of the main parts of E-commerce is an industry that has been considered seriously by emerging insurance markets.
The most important instruments in e-insurance is information and communication. In other words, e-insurance is taking advantage of information and communication technology in order to develop a new process of insurance that is to coordinate the network and information. Hence, the use of e-insurance includes development and deployment of information infrastructures, as well as, preparing and implementing policies.
The advantages of E-insurer are:
- More speed, in the process of issuing insurance policy.
- Increasing the accuracy in the insurance activities.
- Reducing the office space of insurance companies through developing virtual space.
- Retaining policyholders.
- Integration of mechanized insurance systems in all branches, insurance website.
- Rapid identifying the policyholders
- Increasing the clients
- Reducing the administrative costs.
- Increasing the rate of interaction between insures and customer.
The advantages of insured’s are:
- No need to manually completing forms
- Ease of paying and receiving related funds (Premium and claims)
- Reducing the time and the cost of using insurance coverage and the resultant satisfaction.
- Possibility of direct communicating (virtually) with the sales managers and customer callcentre in any time.
- Instant access to statistics and thereby quickly getting reports/Information.
In general, there are two types of technical and non-technical limitations in implementing electronic insurance. Technical obstacles include issues related to the security and reliability of network and hardware, required software and lack of compatibility of specialized software with networking capabilities. On the other hand the cost of developing E-insurance is non-technical limitation that prevents the developing E-insurance.
According to the research findings in this issue, it is observed that employees in insurance industry, have had a positive attitude toward implementation and deployment of E-insurance and in general, most of them have considered E-insurance as an opportunity (in contrast to threat or challenge), and believe using e-insurance in their company is essential. People related to the marketing and sales, as well as research and development are most enthusiastic in applying E-insurance. Furthermore, introduction of E-insurance improvise the company’s reputation as a pioneer. Limitations on accessing communication instruments such as optical fibre and wireless connection are some of the hindrances. Security issues and customer’s fears of presenting personal and confidential information is another obstacle.
Insurance companies who already utilize AI for risk analysis, allowing them to determine more accurate premiums based on the data. AI can streamline the process and improve both accuracy and customer satisfaction rates. Some life insurance companies who use Al to review claims and look for nuances that could indicate fraud details. AI is going to change life insurance- in truth, it already has. Leaders who see these big changes are going to be in the best position to apply them productively.AI will magnify insurance companies’ to trust people by spotting intrinsic nuances that are often flagged the claims process. Companies can shift focus to customer satisfaction and industry growth and human resources can dedicate time for being ethical human.
Hiring the wrong person is incredibly costly; as businesses lose their investment in that individual’s training. Time is a resource that no company can afford to lose. It can take employees months to comb through lot of documents related to life insurance claims. Fortunately, that’s no longer will be necessary. An AI program can sort through the same stack of claims in mere seconds, while also eliminating subjectivity and identifying data points that human eyes would almost certainly miss.
Utilizing AI eliminates the need for employees to perform tedious data analysis and instead allows them to do something more innovative and proactive for the business. Essentially, insurance companies will now have robots to do the robotic work, so humans don’t have to chase data pointing to past events or historical performance.
AI will improve the speed of claims processing, freeing employees to interact with people instead of paper. It will also actively prevent fraud, so customers will pay premiums that align more closely with their life stages. As the use of AI spreads, leaders in the life insurance industry should work to implement programs that will truly streamline their businesses and push them in the increasingly automated future.
Many companies are ready to go beyond the experimental phase of AI, leveraging it to improve productivity and create entirely new revenue opportunities. To become a high performer, we will need to both develop technology, data and people’s capabilities as well as become deeply involved in the broader AI ecosystem. We must converge and integrate three main factors to achieve AI application and optimisation: technology, data and people.
In addition, it is suggested that we must strike the right balance between reskilling the existing workforce and hiring external talent, and that AI calls for a diverse range of expertise to both train and work with intelligent machines. Success in AI cannot happen in isolation. Analysis shows that creating AI innovations requires incumbents to open up their technology, data and talent to work with specialists. It is necessary that we seek advice of highly skilled specialist to provide guidelines to our IT team in this respect.