SHMA Consulting

The year 2020, with its epidemic and lockdown, has changed the way people consume products and services. This has also had an impact on the insurance sector. Individuals and organizations across the world are aware of the need for insurance coverage in response to rising hazards, including those posed by Covid-19.

Notably, this has led to a 30% increase in insurance demand from customers worldwide according to the World Insurance Report 2021. To meet the high demand insurance firms should adapt their distribution tactics and use technology as a primary asset when competing for customers.

As technology continues to advance and consumers expect more convenience in their daily lives, the insurance industry has responded by offering self-service options to policyholders. Self-servicing has become a popular trend, and it is changing the way insurance companies interact with their customers.

The first and most significant factor is the increasing demand for convenience and speed. Policyholders want to be able to manage their policies from the comfort of their homes or offices, without the need to take time off work or travel to a physical office. Customers can access their policy information, make changes to their coverage, and even file claims without relying on customer service representatives to assist them. This level of independence gives policyholders greater flexibility and control over their insurance policies.

Another factor contributing to the growth of policyholder self-service is cost reduction. Insurance firms may save money by enabling clients to handle their policies online. This overhead reduction translates into lower customer compensation and higher corporate profits.

Self-service has also increased competition among insurance firms. Policyholders may quickly evaluate policies and rates from different providers and find one that better suits their needs. This has driven insurance firms to innovate and provide better products and services in order to retain clients.

Despite the benefits of self-service, there are also some challenges that must be overcome. One of the biggest tasks is assuring the security of self-service. Insurance companies must ensure that policyholder data is protected from cyber threats such as hacking and identity theft.

Another disadvantage of self-insurance is the risk of unforeseen losses. Organizations that self-insure are responsible for covering the full cost of any retained losses, which can be difficult to predict or plan for. Another problem is making self-service available to all policyholders, regardless of technical proficiency. Insurers need to provide user-friendly interfaces that are accessible to everybody including those who are unfamiliar with digital technology.

Overall, the trend toward self-servicing in the insurance industry is likely to continue. From easy access to policy information, claims filing, and personalized support, self-servicing has proven to be a game-changer in the insurance industry. With the right investment in digital infrastructure and technology, insurance companies stand to benefit from self-servicing by reducing their overhead costs, providing quality service, increasing customer retention rates, and staying competitive in an increasingly digital world.

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