The Role of Digital Technology in the Re/insurance Industry
Insurance is essential when addressing some of society’s important and pressing issues, such as those that cover their assets, home and life. Reinsurance companies, on the other hand, help insurers maintain their company’s financial stability by limiting their losses. As we emerge into the world of digitalisation, it has transformed the re/insurance industry to another level. Digital technology has helped make the industry more efficient, appealing, and understood. It has also contributed to boosting the performance of marketing, product development, sales, claims management, and more. Read further about how digital technology has helped shape the re/insurance industry.
Save cost with digital technology
Ever wonder how technology helps in reducing costs? It benefits by lowering distribution and administration costs. Companies have many concerns regarding operational costs to necessitate a significant amount of working capital to maintain their operations. Digital technology helps reduce costs by substituting humans with technology-enabled processes and devices such as cloud computing, AI (Artificial Intelligence) and big data. These technologies and processes enable insurance companies to guarantee the accuracy of their data and monitor real-time regulatory compliance.
Instead of hiring a large team of staff to physically work and move files and folders to different locations – storing, retrieving and processing documents or data electronically using PC networks and minimal human interaction are less expensive and more reliable. Moreover, new product information can be partly or wholly automatically sent to customers via apps.
Technology makes things more appealing
From marketing to claims management, things are more appealing with the help of digital technology. In marketing, it is apparent in developing strategies to distribute insurance. Video platforms are used to explain products to customers, spread more company information, and give asset management topic descriptions. Using marketing technologies helps attract younger generation customers as we’re all evolving in the new world of technology.
Another matter that makes the insurance industry more appealing with the help of technology can be observed in product sales. Sales can be managed by using a chat box. This is where the role of AI takes place, giving the customers the same experience of communicating with a real-life person.
As the world evolves, technology has found its significant role in many industries, insurance being one of them. Reinsurers such as Malaysian Re play a key role in shaping the industry as they help to stabilize insurers should there be any loss experience by distributing specific risks. Additionally, MNRB as the parent company of Malaysian Re boasts an extensive business portfolio across Asia and the Middle East, which guarantees sound financial and management position. Visit the MNRB website https://www.mnrb.com.my/ to learn more about other MNRB businesses related reinsurance, retakaful, retail takaful and more.