Recent research reveals that insurtech companies — much like the rest of the world — have been hit hard by inflation fluctuations. These companies are seeing increased costs coupled with decreased profits, which may threaten their ability to continue operations. Insurtech is adaptable, though. These companies will need to strategize new ways to reduce expenses and meet customers’ needs more efficiently.
The following four tips can help insurers in every part of the industry accomplish these goals.
The rise of artificial intelligence remains a heavily debated technology in the world of insurance. Despite these contentions, one cannot dismiss the appeal, especially with the possibility of cost reductions. Indeed, outsourcing certain operations to AI may help insurtech companies — all other insurers, too — stay out of the red. For example, the gradual transition from human underwriting to algorithmic underwriting has helped many insurance companies save exponential amounts of money on labor costs.
Insurers should also consider whether their current platform is helping or hurting their operations. Many agent portals are clunky and feature an interface that isn’t user-friendly. Their features’ scope may also be limited thanks to outdated technology. More advanced MGA systems rely on insurance agent portal solutions such as Portal Pro to solve these problems. Portal Pro allows users to issue quotes, report on claims, and process electronic payments, all from a single platform. This streamlined portal can reduce the cost associated with managing multiple platforms — and more importantly, it can improve the user experience.
Another strength of a good insurance portal is its ability to empower customers with self-service options. As inflation continues to cause increasing expenses, shifting responsibility into customers’ hands can reduce insurers’ and MGAs’ costs. It creates a situation where a customer service representative does not need to provide policy documents. Instead, the right platform can allow customers to obtain these documents with no intervention or assistance. It minimizes the amount of labor that insurers must extend to meet customers’ needs — and this will reduce costs.
Technology can offer an array of solutions that will minimize insurtech companies’ expenses. However, companies can implement other cost reduction strategies outside of tech solutions. Processes such as invoicing and billing can be costly because of the excessive volume of paper waste they often create. Similarly, some administrative tasks, such as processing claims, may be needlessly expensive if companies still use paper documents. Encouraging customers to shift to digital records can eliminate these expenses and help insurtech companies further fight against rising costs.
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 (541) 209-0700.
