Insurance regulations come into play with changing customer trends & demands. Read on to gain valuable insights into how insurers tackle the same with innovation.
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2. INTRODUCTION
Evey business witnesses innovation at one point or the other
owing to the changing customer demands or the need for
enhanced product quality.
The insurance industry is no different as new concepts are being
introduced due to the innovation and use of the latest technology
and the lifestyle changes of the customers.
So, let’s get started and figure out how the changing times are
paving the way for innovation and regulations in the insurance
industry.
3. Insurers need to innovate with respect to the competition in the
market but there are times when they are forced to bring out a
change due to the demand of regulatory organizations.
A number of such organizations witness the changing lifestyles of
the customers and the need for refined insurance products and
services.
This is quite the opposite of how we define innovation. but with
regulatory bodies making the change a must, insurers are left
with no other option but to innovate.
Customers
Driving the Real Change
4. The National Association of Insurance Commissioners (NAIC)
formed an Innovation and Technology (EX) Task Force to assess
new developments in InsurTech, along with educating and
informing the regulators.
Innovation & Regulation!
What’s the Opportunity Scope?
5. IN DECEMBER 2017
In December 2017, a new model was presented by the
American Insurance Association to the National Association of
Insurance Commissioners, which stated creating a regulatory
sandbox that could eliminate the fear of violating regulations
while testing new digital innovations.
Insurers need to keep compliance with the sandbox
regulations when trying to innovate new products and
services for the customers so that the innovations do not fall
outside the changing customer needs.
The Sandbox Concept
6. SANDBOX CONCEPT
States like Wisconsin, Connecticut, and Illinois favor regulations
stating they help provide guidance to the insurance innovators.
While stateslike Wyoming, Arizona, Vermont, and Utah are taking
the initial steps towards establishing a sandbox environment.
The sandbox game-changer came in May 2019 when Kentucky
passed the sandbox bill for the first time for developing solutions
for creative risk management.
7. ARE INSURERS PREPARED?
Understanding On-Demand
Insurance Needs
Creating the On-Demand
Business Model
incorporating the use of
technology
Key points within
this section
When it comes to staying
compliant with the emerging
customer needs,insurers and
InsurTechs are well ahead of
the time due to the following
strategies adopted by them:-
8. Growing Your
Spirituality- 3
What's inside
this issue:
Understanding On-Demand
There have been rapid changes in the
way customers buy products and
services.
To match this pace, insurers use
previous statistics in order to create
products and services which meet the
current demands, along with
satisfying the risk levels.
Insurance Needs
9. Creating the On-Demand
Microinsurance- Smaller
risksfor a particular time
period, episode, or event.
Sharing Economy- Sharing
of assets like rideshare
(Uber, Lyft), homeshare
(Airbnb), bicycle sharing
(Ofo, Mobike), and more.
Continuous Underwriting-
Changing of terms and
pricing owing to the
updationof an individual's
risks.
The insurance business models
are being reinvented to meet the
present customer demands, with
creation,underwriting,distribution
,pricing etc., getting complete
makeover.
The new digital model comprises
of the following:-
Business Model
10.
11. Incorporating
API-based platforms and multi-
channel access to upgrade
business processes.
Multi-channel access with
portals and mobile apps for
channels and customers.
IoT(Internet of Things), Artificial
Intelligence,& Machine Learning
for providing personalized
products to the policyholders.
Robust data and analytics
potential to analyze platform
data to support changing on-
demands in the form of claims
underwriting, prevention,& more.
The requires
meeting customer demands
timely and efficiently.
For this, using the following
technology becomes a must for
the new business model:-
new business model
The Use of Technology
12. This makes it evident for the
insurers to hold training
sessions for the new talent,
along with useful inputs from
the experienced employees, to
meet quantity and quality at
the same time.
The New Talent & Training Need
In order to meet the new demanding
insurance challenges, insurers need
a lot of new talent. It is not just
about hiring manpower to meet
workload quantity but quality as
well, and to meet quality with
perfection; hiring top talent is
essential.
Now,here is the main concern;
hiring new top talent who are
technologically advanced will
definitely add value to the
organization, but they still lack
the expertise & industry
knowledge which their
experienced peers possess.
13. Your first day of school can at
times be difficult. Remember
to trust your instincts and
just be yourself.
42%-Embracing partnerships,
InsurTech, and ecosystems.
30%-Focused on digital
strategies for customer
engagement.
39%-Embracing platform
and API economy.
37%-Creating a future
business.
Leaders
In the present scenario, successful insurance leaders are the
ones who have outshined their peers by adopting the
following strategies:-
This makes it clear that if business owners want to
enhance business growth, they need to move with the
changing customer demands and streamline their business
operations according to the current and future trends.
The Future Insurance Pathfinder
14. As per Global Industry Analytics, Inc., the global outsourcing
market was valued at $24.6 billion in 2017 and is expected to
grow to $220 billion by 2020.
This makes us wonder as to what exactly makes clients opt for
outsourcing, and the following benefits offered byoutsourcing
surely explains the same:-
Reduced operating costs and workload.
Standardized business processes.
Managed regulations, reporting, and compliance.
Reduced new product market time.
Increased scalability and flexibility.
Expanded core functions of the business.
Streamlined administrative services.
Improved customer retention and service satisfaction.
Outsourcing Trends
Making Insurers Future Ready
15. Are you finding it difficult to manage the back-office
processes of your insurance company owing to lack of
time, manual power, or technical expertise?
If yes, you need not worry as Cogneesol is there to
support you completely. Apart from the above-
mentioned ,we will aid you with:-
Policy management Commission management
Insurance Accounting
Leading Outsourcing from the Front
outsourcing benefits
Claims Processing
Cogneesol Inc.
16. Conclusion
This brings us to the conclusion that customer demands are
changing with time, and so are the insurance regulations,
paving the way for innovation amongst the insurers.
However, due to the fierce competition that exists between
insurers, focusing on product quality and customer service is
imperative, rather than spending time on managing
unproductive back-office tasks, which can easily be outsourced.
17. Contact Us
+1 646 688 2821info@cogneesol.com
www.cogneesol.com
30 wall street, 8th floor,
New york, USA