If you’re an insurance agent, you’re well aware of the emerging digital strife in the insurance sector and the complications. Indeed, as digital advancements eclipse human ability, many parts of the industry are changing rapidly. Some have welcomed this change and its improvements, while others have resisted it and critiqued its implications. If you’re wondering how technology is disrupting the insurance industry, there are a few essential factors to pay attention to that are affecting the market.
Find out how technology is poised to address the industry’s current concerns.
One essential metric for the insurance industry is the time it takes to investigate and resolve a claim. The length of this process is called the “cycle time,” and unfortunately, cycle times are growing longer — and more expensive, too. Likewise, the process is slowing down for multiple reasons. Many have attributed it to the transition to digital platforms. Although this transition has brought growing pains, it’s likely to expedite claims processing.
Another major factor impacting the insurance industry — and its transition to digital processes — is the nationwide disruption of the supply chain. As the insurance industry struggles to grapple with the ripple effects of COVID-19, the property and casualty sector has taken a hit. Many insurance professionals are fighting to find a solution with more claims to contend with — and a higher average cost attached to those claims. The shortage of materials further exacerbated this problem, but digital advancements such as inventory tracking may offer a solution in the future.
On top of the aforementioned problems, insurers have seen catastrophic losses of nearly unprecedented proportions. As claims increased, profits decreased, and the result was devastating for many insurers. To make matters worse, many insurers’ investments lost value, causing companies to lose revenue further. Tools like the Verity Program have offered a viable solution to these losses, but many insurers remain hesitant to adopt new technology. The coming years will reveal whether digital advancements can solve strife in the industry.
Many claims emerged — further contributing to the aforementioned problems — as problems in the workforce worsened. Just as COVID-19 caused an array of supply chain issues, it also caused many workforce issues, including a shortage of staff, fewer resources, and higher liabilities. Addressing these risks was and are a challenge — but digital advancements such as claim self-management tools can give clients the power to take ownership of their coverage. It, in turn, can minimize the pressure placed on insurers — even when challenging workplace conditions threaten to destabilize the industry.
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
