Insurance Companies and Digital Transformation

Techno1ai.com | Insurance Companies and Digital Transformation - An Insurance Company is an institution that provides various insurance policies to protect its customers from various kinds of loss risks. The insurance business is the business of taking over risks from customers to be covered by insurance companies. Insurance companies work by using the accumulated premium funds paid by customers to cover the claims of customers affected by the disaster/risk. 

The definition of insurance itself as stated in Law No. 2 of Th 1992 concerning insurance business [1] is an agreement between two or more parties, in which the insurer (Insurance Company) binds itself to the insured (Customer), by receiving insurance premiums, to provide reimbursement to the insured due to losses, damages or loss of expected profits or third party legal liability that may be suffered the insured, arising out of an uncertain event, or giving a payment based on the death or life of the insured person. [*1]

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In Insurance there is such a thing as an Insurance Policy. An insurance policy is an insurance agreement or coverage that is consensual in nature or there is an agreement. The insurance policy must be made in writing in a deed between the customer and the Asurani provider company that entered into the agreement. The deed made is what is called the insurance policy. So in short, the Asurani Policy is a written proof of agreement between the insured party (customer) and the insurer (insurance company). Some examples of insurance companies are: FWD Life, Panin Dai-Ichi Life, AXA Mandiri, Manulife, Prudential, Sinarmas and others.

TECHNO1AI.COM - Insurance Companies and Digital Transformation
TECHNO1AI.COM - Insurance Companies and Digital Transformation


Insurance Companies and Digital Transformation

In simple terms, the business process of the Insurance Company is as follows:

Attracting Customers:

Insurance companies through their insurance agents or salespeople, offer products and look for someone who will be its customer/ customer. The insurance company will divide each insurance buyer or policyholder into different parts. So, if you use health insurance, it will not be mixed with life insurance or anything else. Insurance will cover any of your losses according to the amount taken by the policyholder.

Collecting Premiums:

Customers or customers will be given a premium payment schedule (usually per / month). Through this premium payment, the amount of money from each customer will be managed to overcome problems experienced by other customers (who make claims). So, broadly speaking, the money processing process carried out by insurance companies is the turnover of customer money to cover the risks (claims) experienced by other customers.

Paying Claims:

If there is a claim from a customer who is at risk, the insurance company will pay it in accordance with the provisions. The insurance company will ensure that the incident of the claim made by the customer is really a disaster and not an intentional occurrence.

Insurance Company Agent

If you are thinking about an Insurance Company, the most likely picture that comes to your mind is an Insurance agent who goes to great lengths to convince you why the expensive premiums are worth it. Regarding insurance agents, the Government of Indonesia has regulated it in Article 27 PP No. 73 of 1992 states that:

Each insurance agent can only be an agent of one insurance company.
The insurance agent is obliged to have an agency agreement with the insurance company he is in charge of.

All actions of the insurance agent relating to insurance transactions are the responsibility of the insurance company he is responsible for.

The insurance agent in carrying out its activities must provide true and clear information to the prospective insured about the insurance program being marketed and the provisions of the policy content, including the rights and obligations of the prospective insured.

This is proof that the government considers the issue of insurance to be an important matter and a general need and needs to be regulated based on the laws and regulations in force in Indonesia.

Digital Transformation of Insurance Companies

As technology advances and evolves, Insurance Companies are migrating from 'real' personal relationships to 'virtual' personal relationships to build, retain and manage customers. Then what do the Insurance Company Agents need to do in their efforts to maintain Customer satisfaction. Digital transformation to focus on customer satisfaction

1. Focus on the customer

The CRM solution implemented by the Insurance Company helps companies to meet the needs of their customers and employees. Insurance companies are more adaptable and flexible to changing consumer needs and trends. While the majority of traditional insurance CRMs only have a 'sales' approach, holistic solutions today focus more on profitable 'relationships'. The important factors that contribute are:

  • Recognize the needs of various customer needs
  • Increasing demand to provide a seamless and enjoyable customer experience across channels.
  • Putting customers in the driver's seat to make business decisions.

2. Built by data and strengthened by automation

Seamless data flows break down the boundaries of silos for the Company's workforce. Not only does it give Insurance Companies a complete picture of their Customer's needs but it also analyzes, interprets and predicts client behavior and also facilitates strategic decision making. Automation will make redundant processes more efficient and workflows faster. With automated and intelligent CRM data synchronization, insurance agents can receive real-time data updates on sales marketing and customer service. By using the data available in the market through social media, the integration of credit rating agencies, etc., insurance companies can:

  • Detect fraud quickly
  • Improve predictions
  • Develop new products according to market tastes.

3. Preferred Partnerships

Strategic alliances of insurance agents and partners, such as hospitals go hand in hand. They help in understanding client behavior and health details, providing valuable information for underwriting. They have opened up new avenues of partnership, for example;

  • Partner with a travel portal
  • Partnering with a tax filing company (encouraging insurance as an option to save on taxes)
  • Partner with a healthcare technology startup.

4. Real-time price dynamics

'market' insurance aggregators are proving to be game-changers in the industry. Offline and online channels have different rates to attract subscribers. Aggregators emphasize various pricing algorithms and intermediate tariffs and benefits to then pass on to customers.

5. Flexibility with cost savings

In many insurance organizations, a cost-saving approach alone has made investing more rewarding. It helps to be flexible and credible. While at the same time allowing the customer experience to play a key role. The digital transformation carried out by insurance companies with the implementation of CRM software has strengthened the relationship between insurance companies and their customers or customers with more personalized services, regardless of time and location. The prevalence of mobility helps executives to view, create, and modify CRM data on internet-enabled mobile devices.

Insurance companies are rapidly embracing digitalization to remain competitive and successful. However, it is very important to realize that digital transformation is not only about systems and processes, but also meets the ever-changing needs of customers. That is why the Digital Transformation of Insurance Companies should start from the implementation of a CRM system to increase Customer satisfaction, Customer management, as well as increase Company Value. (read: CRM System in Insurance Business to Manage Customer Relationships)

The Role of CRM for Insurance Company Growth

The insurance sector is one of the most dynamic sectors in the business landscape in Indonesia. Regulations imposed by the government can easily make changes in margins. Although, it is one of the most unpredictable sectors, but it has great potential, as can be seen from the large number of investments of international players. Technological developments and constant changes make insurance companies to always be updated with the latest developments, tools and solutions to make the environment more conducive to themselves. To stay abreast of the latest trends especially the current digital technology trends. Streamlining business operations and managing customer data is becoming increasingly important for every Insurance Company.

While it's true that managing a customer database isn't the only thing that's needed in a business, when it comes to maintaining a solid customer database, it's a profitable thing for insurance companies. In a competition-driven industry, allowing your team to access customer-related data will improve sales leads and customer management in the most efficient and cost-effective way.

This is where the CRM sector is needed in the context of digital transformation in the Insurance Industry sector. CRM software can easily manage customer data for companies. In connection with the latest developments in the CRM sector, companies can now store their customer data in the cloud so as to save costs and data security is more guaranteed. With the emergence of the first Cloud-based CRM software in Indonesia, namely Barantum CRM which can be integrated with the Barantum Call Center, it can provide solutions directly to the insurance industry.

Benefits of CRM for Insurance Companies:

CRM assists insurance companies in providing professional-level services to their customers, as it gives access to all relevant information in a fraction of a second.

Every employee of the company can provide their customers with all the right information whenever they access customer data.

CRM helps keep central information up to date.

A CRM application will be very helpful in maintaining a long-term relationship with customers.

Helps manage a large amount of data, forms, contracts, reports and other documents about the central management system that can be accessed at any time by the company's employees. Thus making their work more efficient.

The features of CRM software that can help Insurance Companies manage their data efficiently are:

Address Management:

CRM software can help maintain automated processes for address management. With another mouse click the employee can check whether the information provided is correct or not. This includes checking for duplication. In addition, employees can filter customers according to their target and filter other specific areas of content to display the intended target customers

Proper Document Management:

CRM solutions can help insurance companies to create and manage different types of documents. Documents can be created in the form of Microsoft Excel, PDF, email, graph etc., according to the ease of the employee. Meeting presentations for sales meetings are also saved and can be accessed directly through a central server, which gives all employees access to their current documents. Keywords can also be used to find specific documents.

Retaining Document Rights:

Another feature in CRM solutions is that it gives rights to their employees. Companies can grant rights to their employees based on their hierarchy. This can be done using the Professional or group administration features. One can easily grant rights to data records. Employees can be granted access to the data to which they have rights. This feature is easy to manage by using a User-friendly Interface.

CRM helps in generating Opportunities:

Crm software has a smart "Opportunity" feature enabled which in turn can help company employees to manage their potential customers and prospects. For example: Automated notification and action services, can help remind companies of upcoming events, birthdays, and even notify when appointments are scheduled. Forecasts and reports can be easily created to manage leads.

Phone &Tablet Accessibility:

Insurance employees can now access information from anywhere, whether it's a PC at home or a smartphone and laptop when they're on the go. CRM software can access the central database through an internet browser on mobile phones/laptops and tablets.

Task management:

CRM software is your personal assistant. It lets you manage your tasks with ease. One can easily monitor ongoing tasks and create follow-ups after completion. Filters in CRM Software let you sort and display tasks by deadline date, person in charge, etc. there is more, there is a reminder feature that sends reminders on time when you are approaching your deadline.

The Sales CRM technique serves as a magic wand for the insurance sector in managing their customer database. In Indonesia itself, CRM systems play a major role by acting as an important business tool for a number of purposes.

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