In recent years, due to the rapid growth of information and communication technology, and above all, the development of internet, the process of E-Insurance has been accelerated. Since the new millennium, insurance companies throughout the world are actively presenting their services by using E-insurance and internet. E-insurance is the result of evolution in communications and information technology.In other words, it is an insurance operation, which are performed by using internet and other technology. We need to take advantages of new information and communication technologies to provide better services, in order to reduce the real-time of activity and management costs.
E-insurance presents many new opportunities. Large companies may reap some economies of scale, which could give them a more enduring advantage over new and existing market players. However, it is also possible that smaller insurers may successfully use E-insurance to serve niche markets. Artificial Intelligence (AI) and its related technologies will have a seismic impact on all aspects if the insurance industry, from distribution to underwriting and pricing to claims. Advanced technologies and data are already affecting distribution and underwriting, with policies being priced, offered and purchased. As AI permeates life underwriting we will be able to identify risk in a much more granular and sophisticated way.
It has been predicted that in 2030, manual underwriting will cease to exist for most personal and small-business products across life and non-life insurance. The process of underwriting will be reduced to a few minutes.The majority of underwriting will be automated and supported by a combination of machine and deep learning models will be built. These models will be powered by internal data as well as a broad set of external data accessed through application programming interfaces and outside data and analytics providers. Information collected from devices provided by insurers, will be aggregated in a variety of data repositories.
Claims processing in 2030 will remain a primary function of insurers, but head count associated with claims will be reduced by 70 to 90 percent compared with 2018 levels. Advanced algorithms will handle initial claims routing, increasing efficiency and accuracy. Claims for personal lines and small-business insurance will be largely automated, enabling insurers to achieve straight-through-processing rates and dramatically reducing claims processing times from days to hours or minutes. Automated customer service apps will handle most policyholder interactions through voice and text, directly following self-learning scripts that interface with the claims, fraud, medical service etc. The turnaround time for resolution of many claims will be measured in minutes rather than days or weeks.
Blockchain has been growing as the central repository of truth for many industries and use-cases. The insurance companies are taking advantage of blockchain as it brings transparent information about the transactions, which creates a sense of trust. Blockchain offers to be the central repository of truth. Using blockchain, underwriters can source data from external sources to automate some aspects of underwriting, since the data in the blockchain is trustable and is from a verified source.
With blockchain, most of the necessary information that is required for claims verification can be processed in no-time. Since blockchain can take inputs from a variety of difference sources without tampering any information, insurers can use the data available in the blockchain to track the usage of an asset.
We, therefore, should move forward and formulate appropriate strategies, keeping in view the following advantage of E-insurance.
- More speed, in the process of issuing insurance policy and setting claims.
- Increasing accuracy in the insurance activities.
- Upgrading mechanized insurance system, according to the latest hardware and software facilities.
- Eliminating costly and time-consuming stages, in sales process, claims process etc.
- Reducing the office space of insurance companies through developing virtual space.
- Encouraging policyholders to further use of insurance affairs through a perfect communication system.
- Attracting organizations to contract with insurance companies for group insurance.
- Retaining policyholders and do more business with existing policyholders.
- Facilitating the insurance affairs such as documents, reporting.
- The possibility of further managing the affairs of insurance in a transparent way.
- The possibility of intelligent performing of some insurance processes such as introducing the policyholder to the medical centers, only by phone or internet.
- Integration of mechanized insurance systems in all branches, through website, and internets.
While implementing the programme of modern technology we need to bear in mind following points for consideration:
- New technologies provide new opportunities for more earning and enhanced customer service. Digital innovations act as catalyst for customer satisfaction. Therefore, E-insurance ought to be the priority of insurers to reach out to more people, more effectively.
- New technologies need to be adopted for day to day business development through E-marketing and sales. Our E-business ought to be customer-centric for which instructive voice response and mobile text messaging are very useful.
- Desk executive need to be engaged for E-marketing and direct sale.
- It is necessary that we seek advice of highly skilled IT specialist to provide guidelines to our IT team to explore the application of Artificial Intelligence (AI) for risk analysis, fraud detection and enhance customer satisfaction.
- We need to lunch paperless online sales process system and speedy claim settlement.
- By adopting insure-Tech, we will be able to understand diverse market segments, market needs, preference and grievances. This will lead us to decide how we utilize modern technology and formulate prudent strategy and future action plan by sharing experience of Malaysia, Singapore, India and Iran.
- We need to think rationally while deciding to invest in prominent emerging technologies such as AI &Blockchain. This is because; technological innovations can help us to win the hearts of new generation customers.
- It is necessary a realize that we do not have much time to adjust with rapid changes happening around the globe and it is likely that foreign companies can invest in modern technologies while doing business in Bangladesh.
- We need to agree as to how we will be responding to changing dynamics in order to ensure that we can improve the efficiency and effectiveness of our agents, employer of agents by providing data, information and market analysis.
- We need to share experience and progress of neighboring countries in applying modern technologies in E-insurance through, internet, blockchain, big data, advanced analytics and Artificial Intelligence so that entire operation system can be automated. If we invest in modern technologies and advanced analytics today, we will be revolutionizing and leading in future.
- We need to formulate policy guidelines for using social media and build long term stronger relationships with customers.
- We should have a plan as to how social media can work for us and how best we can manage it.
- We need to realize that full fledge IT module applications would improve our performance, productivity, efficiency and reliability. We need to find out what is an absolute necessity to achieve the overall goal.
- We need a comprehensive software training module to enhance the skills and performance of our staff and turn into an online teaching academy.
- We need install a comprehensive online sale software module and an outstanding email marketing team to be filled I by the existing underutilized staff.
- We need to provide ICT policy guidelines for security, proper network management, proper control and user responsibility.
- ICT ethics policy for promotion of ethical conduct, a trustworthy and honest atmosphere is a necessity.
- ICT audit need to be carried out on a regular basis to review and evaluate policies for ensuring availability of accurate data/information, maintaining confidentiality and availability.
Software modules which have been complete, implement and completed but yet to be implemented and or the modules which need be reframed and need to be classified and an action plan to be prioritized. Time frame for completion and implementation need to be fixed and to be reported to executive committee of the Board.