It is no surprise that Saas has become an essential tool in shaping and transforming industries. Nowadays, Insurance industry are being transformed into virtual businesses only because of what virtualization has made the service efficient, accurate, and easier to use.
Software as a service has become the trend these days. Are these tools helping people with their complicated problems? How is it contributing to the insurance industry being a software licensing and delivery model? The functions that Saas has provided to the insurance industry have proved to be remarkable because Saas helps developing solutions and also ensures a more connected environment with customers.
SaaS is the abbreviated form of Software as a Service, and is also known as ‘on-demand software’. It is a part of cloud-computing along with a few more of them such as IaaS, PaaS, DaaS, MaaS, MBaaS, DCaaS, iPaaS, and ITMaaS.
It was during the late 1950s when leading companies like IBM and other computer providers referred to SaaS as ‘time-sharing’ or ‘utility computing’. The services were required by the banks at that point in time so that banks could use computing power and database storing services.
SaaS’ Contribution To The Changing Insurance Industry
It is not only the insurance industry but every other industry in the world that will benefit from emerging technologies like AI, machine learning, and other software tools so that there is an improvement in customer experience and business operations.
Industries like the Insurtech industry use tools like SaaS. The Insurtech industry is large especially in the Asian countries it has got a huge market. India stands as the second-largest Insurtech market in the Asia-Pacific region.
However, the numbers are expected to keep growing from 1.7% to 2.3% by the year 2030. SaaS help insurance companies focus on their business by providing an effective solution. As a result, this becomes a strategy to focus on growth rather than focusing on maintenance of the IT department.
The insurance market has always been competitive and will continue to be. This means companies that can come up with standout offers and features will dominate the market. The gap between insurers and the policyholders needs to be filled so that excellent services prevail in the market.
SaaS’ entry into the insurance industry helped companies reduce their cost and employees were able to check the status of insurance. Companies were able to decrease the use of internal resources without making any kind of compromise on security.
In a country like India where there are more than 800 million internet users, people are adapting the digital benefits of insurance companies. The pandemic situation was another major reason for emerge of SaaS services in the insurance industry.
Why Insurance Companies Should Adopt SaaS?
On one side there are the benefits of using SaaS services and on the other, there has to be proper implementation of SaaS insurance solutions. To go both hands in the hand proper planning is required.
There has to be some effort put in from the employees’ side so that there is an improvement both in customer experience and being cost-effective at the same time. Reasons, why companies should adapt to SaaS, are because of the following:
· Enhancing Customer Service
People say it is the customers that run the business and it is true because customers generate money for a business. Customer satisfaction is important not only in the insurance industry but in every other type of industry.
SaaS helps improving customer service by providing easy solutions. SaaS help saves the time for the policyholders by providing information regarding bill payment. This way they do not have to raise queries which will only waste time and the solution might be ineffective.
Once in a while updates are made from the insurance companies so that additional features can be benefitted by the customers. Additional features also help to enhance the customer experience.
· Information Is Secure
A policyholder will always look for a safe and secure methods for their insurance. Well, SaaS is an effective solution for that because of the security that it provides. Updates help the security of the information regarding the policyholder and payment details more advanced.
Insurance companies would be relieved if they did not have to carry the burden of security. SaaS is the perfect model to use especially when a company has a large number of clients.
The current scenario of the world has pushed people to turn towards the services of insurance companies. Insurance companies are providing enough support to their clients so that whenever there is an emergency the insurance would be of great help.
Thanks to technologies like SaaS that monetary transaction has become more secure. Both customers and insurance companies can save time only because SaaS provides a bridge between the gap between customers and insurance companies.
Without having to move an inch from their houses customers can get help support from chatbots. A chatbot can answer the answers that you can question. SaaS services are yet an effective solution for not only the insurance industry but every other type of industry that can benefit from SaaS.
Why SaaS is important for an insurance company?
SaaS helps insurance companies secure the data of the policyholders by identifying fraud and assessing risks.
Will the growth of using SaaS for insurance companies increase in the future?
Insurance industry is rapidly increasing and as well as the SaaS industry. Both businesses and customers can benefit from using Artificial intelligence and SaaS. A huge growth of SaaS for insurance companies is expected in future.
How technology is changing the insurance industry?
Technology has made the claims experience more efficient, accurate, and easier to use than ever before.