Monday, November 20, 2017

Insurtech: optimizing processes with mobile data capture

Being one of the most consumer-centric industries, insurance is overflown with challenges of the digital age. While closely related industries, such as banking, are taking brave steps to keep up with the demanding digital and mobile market, insurance seems to be struggling to keep up with trends in customer experience and to cut down costs and fraud losses. Efficient management of these issues is certainly challenging, but let us tackle some of them from the fast-moving mobile environment perspective.



The challenges of digital transformation


One of the major reasons why consumers today are more keen to make important financial purchases online is the empowerment they get from having fast and easy access to all information they need to make the final decision. Empowered consumers like to do research on their own and they may contact an agent or go visit a branch office only when they have concrete questions and concerns. This is not just the case with online retail; even more sensitive and complex services like opening a bank account or getting a loan are now done within minutes via a mobile app - so why shouldn’t insurance services be done with the same ease?
Apart from having information at hand, another important factor valued by consumers is the simple functionality of the research and purchase process. Choices in complex decisions such as insurance options have to be made simple and intuitive, in order to get the consumer to proceed to checkout as soon as possible. Certain parts of the insurance purchase process are dull and take up a lot of time, such as filling in personal information manually or providing physical copies of identity documents. But there is a way to replace the most time-consuming parts of the process with smart tech solutions, and enable consumers to go through with them in just a couple of seconds. By scanning identity documents with help of OCR (optical character recognition), personal data are instantly extracted and can be automatically entered into any data management system. Besides saving a great amount of time, this neat feature doesn’t require heavy investments in new office equipment - it can be done on any mobile device, or if you still prefer desktop solutions, as a part of the existing web application. Talk about killing two birds…


Developing a mobile-centric approach


Such solutions are certainly neat, but only if used as part of a well-defined and efficient digital channel strategy. A common mistake of the majority of insurance providers who are stepping into digital is that they are still trying to mimic the branch office experience and processes. Only a few of them, such as Slice or Inshur, have developed a mobile-centric approach, offering innovative and fast insurance services through mobile apps. Not only did they create more streamlined processes for consumers, but they also shortened the overall processing time. What once was a problem, now becomes a new customer acquisition channel.


Fraud prevention


Introducing new tech into the traditional insurance business processes sounds exciting. However, besides having to be used in the right way, there is another challenge: susceptibility to fraud, which still seems more difficult to manage remotely than in real life. 
Insurance scams are a fruitful area for information manipulation, mostly due to the after-the-fact nature of reporting any unfortunate events. The lag in reporting details in the claims process is useful for both customers and third parties who are looking to exploit the ability to bend the circumstances of such events. Besides eating up the insurer’s premiums,insurance scams done by third parties (medical or car service providers) can have devastating consequences for the customer’s financial or even medical health. 
Don’t get discouraged too early, though. The new disruptive tech offers advanced solutions, e.g. in verification and biometrics, which can help prevent fraud losses while additionally improving the overall customer experience, and is also becoming easier (and cheaper) to integrate into the existing business processes. Even text recognition tools mentioned earlier offer additional security feature: they work locally, on-device to ensure data privacy. 
By combining multiple tools together, you can cover a wide range of insurance services and processes through a mobile app or online.



Easy data input & management


So far we have talked about the consumer experience and protection of their data. But let’s look at the other side of the coin. Solutions mentioned above are not only useful for the consumer, but they also enable more productive and efficient internal processes. By moving multiple steps of insurance services to mobile and getting consumers to do the steps themselves on their own devices allows for a faster and more effective information flow. Instead of typing, fulfilling a claim form through a mobile app can be incredibly easy and fast by scanning the required information, like VIN, driver’s license, or health care card. When combined with corresponding data management systems, this feature can generate efficiency on a large scale, both in day-to-day operations and in complete business processes.
We hope this helps you realize the extent to which digital transformation has become an integral part of every industry - so now it’s time for insurance to speed up and move from the branch offices and web to mobile-first services.


Related information


BlinkID - SDK for scanning identity documents as the first step in remote user acquisition
BlinkInput - SDK for scanning various predefined numbers or text, eg. VIN, health care card, insurance number...

If you’d like to know more about OCR solutions we offer, get more info on how they can help optimize insurance processes, or explore various other use-cases, feel free to get in touch with us here. We’d be happy to have a chat with you! 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.