Digital insurance is the use of modern technologies in insurance services, which significantly simplifies customer experience and reduces costs for insurance companies and their partners. During the Covid pandemic, this insurance model became extremely popular, as it allowed customers to avoid in-person visits and reduced the time required to process policies.
What is digital insurance and why is it more convenient than conventional insurance?
Digital insurance is an innovative approach to providing services in this industry using modern technologies. Digitalization is a relatively new direction in the insurance sector that provides citizens with a full range of services online, without the need to visit insurance company offices.
Many insurance companies now offer the opportunity to purchase insurance products online. This option is especially convenient for those living in regions with a limited number of insurance offices. Electronic technologies allow not only to issue insurance but also to settle claims, apply for payments, and extend the policy remotely. All this makes insurance accessible and simple for customers.
In 2024, insurers are actively introducing AI and neural networks into their work, which helps analyze risks, customize targeted advertising, automate cross-selling, and communicate with customers using chatbots. This increases service efficiency, saves policyholders’ time, and increases trust in the company.
What electronic technologies do insurance companies use in Russia?
Digitalization technologies in the Russian insurance industry in 2024 include:
- Click-to-activate: A customer can activate insurance only when it is really needed, for example, when renting a car.
- Driver behavior analysis: Based on available data, AI assesses the accuracy of drivers and forms fair rates, reducing the cost of insurance for careful drivers.
- Chatbots: A chatbot is useful for sending an instant response to a customer’s request, providing information about rates and promotions, calculating insurance products, and other types of customer support in messengers.
- Blockchain: The use of private blockchain platforms makes interactions with users transparent and secure, simplifies transactions, and reduces the risk of errors.
Advantages of digital insurance for companies, policyholders, and intermediaries
For insurers, digitalization makes it possible to reduce costs for maintaining offices and staff, as well as improve the quality of services through automation. Insurance companies can accurately process large amounts of data and create personalized loyalty programs for different customer segments.
For policyholders, digital technologies reduce the final cost of insurance products, make prompt service more accessible, and simplify the claims process. Customers do not need to spend time visiting the office; all insurance contract issues can be resolved online.
For intermediaries, digitalization also makes work easier. Thanks to the services and mobile apps developed by insurers, insurance partners do not need to manually recalculate coefficients and process a large number of paper documents, which reduces time costs and enhances customer service.
By Andrey Kreer , CEO of the Polis.online insurance platform