Digital Onboarding Toolset for Insurance Industry: Identomat at UAINSUR.TECH DAY

UAINSUR.TECH DAY - Eastern Europe’s premier event of the year in the field of insurance innovation was held on June 30th and Identomat’s COO, Zurab Kotaria was invited to present about the subject of digital customer onboarding in the insurance industry.

UAINSUR.TECH DAY is the window into the industry’s most influential views that shape the future of insurance transformation and InsurTech’s direction. Covid has forced almost all sectors of business and the economy to swiftly change and adapt to the new reality. By accepting the inevitability of implementing the latest digital solutions and working with digital channels, insurance companies are able to expand their customer base, generate new sources of income, and offer innovative products. 

Zurab’s speech began by highlighting how the global insurtech industry has developed through the years, making it easier for the public to access it and for businesses to provide it. 

Before diving into separate topics, Zurab reviewed the process of customer journey upon receiving an insurance policy: onboarding, data collection & input, risk assessment & categorization, insurance score-based pricing and policy purchase; 

‘ Each of these components can be automated or digitized, including even the claim processing and insurance history/score update. As a result, these services are provided remotely, making them less time-consuming. ’ 

Online insurance tools can be divided into three main categories: 

• ID verification and KYC
• Customer scoring and risk-based pricing
• Claims processing and policy maintenance. 

What is KYC and why do companies subject their customers to identity proofing? 

The main reason behind it is fraud prevention: businesses must make sure that customers are truly who they say they are online. For example, how Identomat approaches KYC is, it asks the user to take a selfie, take a photo of their ID and within seconds (thanks to cutting-edge Artificial Intelligence) they receive a yes/no answer and are safely onboarded with access to their desired goods. 

The second component, customer scoring and risk-based pricing, has several inner layers: health insurance, life insurance and auto insurance being three in the highest demand. In its core, insurance score factors cover credit rating, health history, driving and criminal records etc. and based on these, risk category, policy options and pricing are determined. 

Last but not least, claims processing and policy maintenance, naturally, occurs after an insurance case (life event). In order to avoid piling up endless documents, receipts, reports etc. document OCR and Data API integrations make these processes extremely quick and analytically precise. As for the claim processing, for the majority of cases, it can be done through visual analysis using AI. For example, vehicle damage assessments and property value estimations can be self-initiated and completed within the provider’s app, using a common mobile phone camera and sophisticated machine learning algorithms. 

‘Claim processing can be fully automated or use the human-in-the-loop workflow -  for especially high-value cases, appraisers will be able to double check and avoid potential error.‘

So, what should insurance businesses' DX (Digital Transformation) toolset look like? First and foremost, a robust DX toolset should enable and amplify digital, remote and automated business activities. Furthermore, it should have flexibility to customize, provide modular architecture and adaptable pricing policy, good back-office dashboard to manage customer cases, have access for all major platforms like iOS, web, Android etc. 

How do insurance providers benefit from Digital Onboarding Toolsets? 

According to Zurab, insurance providers who go through digital transformation attain a far more transparent and faster decision-making model. This leads to accelerated customer onboarding and policy sales. Thanks to digital channels, target markets are vastly expanded. Due to fast and reliable service, customer satisfaction is higher and brand image improves proportionally. With AI based scoring, businesses are enabled to predict and mitigate losses deriving from risk exposure. 

Another side of the coin, and what makes digital toolset so striking and attractive, is that customers have a lot to gain too. They avoid long lines and waiting time is cut to virtually seconds, no need to collect stacks of paper documents and most importantly - instant claims and processing are widely available. 

What obstacles are there to overcome? 

Lack of trust in digital platforms remains one of the main challenges for the public. Understandably, in the age of frequent ransomware cyberattacks and corporate data leaks, trusting companies with personal information is not the easiest pill to swallow.  

On the government's side, the regulatory base is very dated in most parts of the world and needs refurbishment to be in line with the newest industry standards. And when it comes to companies, unwillingness to change organizational processes and the needed effort for workforce participation come to play a huge role in modernizing and streamlining business processes. 

As the market leader in up and coming Georgian insurance business, the biggest insurance company Aldagi has adopted Identomat to safely onboard customers remotely. The company was one of the first in Georgia to move to digital onboarding when Covid-19 first hit the country. Since then, other businesses followed in its footsteps - expanding Identomat’s partner network. Soon after, Identomat was officially approved by local and international regulators, such as National Bank of Georgia ; Recognized as compliant with the Georgian Law on Data Protection, GDPR (General Data Protection Regulation) and ISO-27001 certified. 
If you wish to learn more or have any questions regarding Identomat, our KYC modules, or pricing, don’t hesitate to reach out to our team by visiting our website: https://identomat-329a23.ingress-baronn.ewp.live/