TECHNOLOGY
is lowering the skills barrier and driving more reliable and tangible outcomes for insurers ,” he says .
Insurtech automation vs the customer But does automation make insurance companies more profitable – and is profitability the driving factor in transformation ? If so , where does this leave the customer ? According to Morgenthaler , the technology has improved customer satisfaction – creating a double win for the industry .
“ Properly implemented , automation initiatives often show a strong ROI and time to value ,” he says . “ This is both in terms of lowering operational costs , as well as strengthening customer loyalty and reducing churn .”
Automation helps in two key areas , namely profitability and risk , agrees Nentwich . “ When automated processes are put in place , resources can be deployed elsewhere on higher value tasks ,” he says . “ In addition , the increase in automation reduces the chance of human error , thus reducing reputation risk or loss of revenue through fines or additional resources needed to rectify the error .”
But it ’ s not just about risk and accuracy . According to Colonnese , efficiency is key in cutting costs – but also in improving the customer experience . Happy customers return and are loyal . They also recommend services to friends and family if they are very satisfied .
“ Yes . It [ automation ] absolutely makes their operations more efficient , removing
64 July 2021