Page 8 - TurkInsurance Digital Magazine

6 cover story

Retail or corporate customers do not the report, some of the major strategic priorities that need to
only buy products from the insurance be considered are sustainable growth, return on equity, dynamic
market, but also solutions for specific structure and customer loyalty. The report also analyzes the
problems. Nowadays, most insurance digital processes that are expected to shape the future and states
customers prefer to research online that drones, blockchain, telematics, artificial intelligence, robot-
before referring to an agent or bro- ics and internet of things will be tools defining the future.
ker. Therefore, it is important for in-
surance companies to be better aware Robotics are among the primary factors of digital de-
of where their customers are looking velopments
for solutions. Insurance customers
are looking into social media plat- In today’s environment, digital contact with customers gets more
forms to find similar problems and solutions and are regarding and more important in marketing products and services. Robot-
blog posts as guidelines. All those phases push insurance com- ics and robo-advice applications are among the most influencing
panies towards digitalizing their processes if they want to stay digital developments for Turkey. Robo-advice tools that work
afloat. Social media platforms, mobile informatics and portable by considering the assumptions and inputs and therefore have
device integrations, easy insurance applications, robotic process an ability to produce advices targeting user needs are frequently
applications and artificial intelligence constitute most of those preferred in the insurance markets of many countries including
digital processes.
Turkey, OECD countries in particular. Companies make huge
investments in robo-advice services which are highly appreciat-
Digital developments cause customer expectations to improve ed by customers. In Turkey, this service was initially used by
and diversify. Today, insurance customers are still exposed to Adendum, a technology company that launched the customized
traditional service approach. This means that they always com- smart information system called ‘AddVICE’ for the private pen-
pare it with the other markets, as they need to fill in long forms sion market. Nowadays, many companies in the market use this
for claims filings due to limited integrations between channels system.
and engage in tedious policy arrangements, which are unsettling
in terms of customer expectations. Such deficiencies create op- Another significant area that is expected to define the future of
portunities for non-life companies that have just entered in the insurance sector is blockchain technology. Thanks to non-cen-
market and create new competitive that are focused on data and tralized and reliable transaction structure, blockchain technol-
technology.
ogy brings advantages in detecting frauds and managing data.
It provides the ability to share sensitive personal information,
Thanks to competitive advantages of the digital environment, in- including medial information, in a safer and cheaper manner.
surance companies can control their risks more effectively and With a more transparent and reliable transaction structure, it
move away from the price-indexed competition by monitoring offers a highly convenient structure for interpersonal insurance
the new applications offered by new competitors in the market. If products. Moreover, this technology can popularize micro in-
insurance companies only focus on risk classifications and prod- surance applications over blockchain’s interpersonal structure.
ucts, they fail to keep up with the advanced techniques developed Claims management and payment processes can get accelerated
in internet and telecommunication areas.
and operational costs reduced. Many insurance companies in
Turkey continue to make significant investments in the block-
EY report states that prevention of cyber risks is a chain technology.
focal point
Digitalization brings great conveniences for compa-
Ernst & Young, one of the leading audit and consultation com- nies
panies in the world, has examined the digital developments in
Turkish insurance market in its latest report “Vision of Digital Insurance companies gain huge pluses from digitalization. In
Insurance”. The report states that high-speed IT function will order to estimate the risks more accurately, companies benefit
allow for more customized services and products; adding that from huge big data produced by digital technologies; and they
insurance companies that are going through digitalization pro- use it to be a reliable advisor for their customers and warn them
cesses mainly invest in the prevention of cybersecurity risks, pro- about potential problems in advance. In turn, this enhances cus-
tection of personal information and automation. According to tomer satisfaction.