The digital realm has seen remarkable innovations, particularly in the financial sector, leading to the rise of fintech – the intersection of finance and technology. This evolution signifies a transformative journey involving novel business models, streamlined processes, and a myriad of new market opportunities. A parallel development, insurtech, encapsulates the digital advancements tailored for the insurance industry. Together, fintech and insurtech are reshaping the financial landscape, presenting both challenges and unprecedented opportunities.
In the first half of 2022, fintech witnessed a staggering global investment of $107.8 billion, slightly less than the $111.2 billion in the latter half of 2021. The insurtech sector too is booming. By the close of 2021, the market valuation touched $3.85 billion, with projections indicating a phenomenal compound annual growth rate of around 51.7% leading up to 2030. Italy, although behind its European counterparts like Germany and France, has shown significant growth in insurtech investments, which surged from €60 million to over €200 million in the first half of 2022.
Historically, the insurance sector was known for its slow, bureaucratic nature, especially in Italy. The digital wave, however, has revolutionized the industry. This transformation encompasses everything from advanced digital identification systems to the optimal utilization of data, the most invaluable asset in today’s digital age.
One key element of this digital shift is the concept of “electronic identification.” Essentially, it’s a unique set of data identifying an individual within a digital system. This identification method ensures a seamless online onboarding process for insurance services, adhering to all regulatory standards while providing utmost security. With tools like SPID, Italy has seen over 35 million digital identities activated by January 2023. The widespread adoption of electronic identity cards (CIE) and the electronic signature tool further emphasizes the sector’s digital inclination.
Another critical area is the move from dematerialization to digitization. While dematerialization focuses on replacing paper documents with electronic versions, digitization adds legal and evidentiary weight to these electronic counterparts. The benefits are multifold – cost savings, time efficiency, reduced risks, and enhanced data accessibility. Moreover, this shift enables companies to exploit their document repositories, leading to deeper insights and better customer relationship management (CRM).
The culmination of this article focuses on the transition from CRM systems to more advanced, personalized Customer Communication Management (CCM) systems. With a robust digital CRM system, companies gain unparalleled insights into their customer base. This information is then leveraged to foster a unique, tailored communication strategy for each customer. As the insurance industry grapples with increasing customer retention challenges, these digital tools are crucial in establishing and nurturing long-term relationships.
Our Perspective:
“We recognize the transformative power of fintech and insurtech in enhancing the customer experience. As digital consultants, our emphasis lies in leveraging these technological advancements to create innovative, consumer-centric solutions. We believe in a holistic approach that encapsulates the entire customer journey, from onboarding to continuous engagement, ensuring every touchpoint is optimized for a seamless user experience.”
Pinnacle Digital Advisors
Article originally posted: https://www.doxee.com/blog/digital-marketing/fintech-and-insurtech-digitizing-processes-to-realize-a-successful-customer-experience/