A big buzzword floating around in tech is “disruption” which may seem unknown to the general population, but familiar to the tech industry. It is a word that may generally have a negative connotation now represents transformation itself. To “disrupt” is to improve, upgrade, and innovate. What does it mean to disrupt the insurance industry, then? There are a few ways that insurance has been dealing with disruption. However, one of the biggest is the transition away from legacy software systems. There’s little room for outdated and unintegrated data systems in an industry that’s rapidly moving into the future. Solutions like Portal Pro can provide the disruption the industry needs to continue growing.
Yet another big buzzword in the insurance industry is “insurtech.” The portmanteau of “insurance” and “technology” represents the various tech improvements that are rapidly taking over. While many insurance companies have relied on legacy systems for far too long, insurtech is ditching tradition in favor of innovation. The result is the development of platforms that better serve insureds’ needs, offer better communication tools, and streamline the policy management process. What could be more disruptive than that?
As insurtech promises to improve communication between insurers and their clients, the traditional role of the client is rapidly changing, too. Old-school insurance tactics treated insureds as a deferential party rather than a partner. Insurers reinforced this dynamic by limiting access to policy management tools and policy documents. They do this while also maintaining claims processes that were often perplexing to navigate. These elements ultimately made insureds feel dependent upon insurers. However, this is no longer the norm. Insurtech levels the playing field by empowering clients to control their coverage independently.
The sudden growth of the insurtech revolution has posed a challenge to regulatory committees, but insurers must be aware of the standards that apply. In most cases, the mandates that govern traditional insurance policies are still relevant to insurtech innovations. There may be additional regulations that insurers must comply with, too, regarding the electronic submission of sensitive data. Insurance companies investing in insurtech should research the regulations that apply to their products.
The ultimate goal of insurtech tools like Portal Pro is to improve communication between insurance companies and their clients. This improvement in communication can equip insurers with the data they need to develop better products, optimize claims resolution processes, and boost profits in the long run. These benefits come alongside improved client satisfaction, too, thanks to the empowerment that insurtech can provide. Insurance companies should look for ways to integrate tech innovations into every process so that customers can benefit.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at (818) 707-4295.
