If you’re an insurer struggling with contact-ability retention amidst this insurtech saga, you’ve probably already heard the phrase, “no KYC required. ” However, this trend is far from over. Avoiding KYC for insurance has a significant impact on insurers’ contact-ability retention. It’s a sign that insurers need to invest in more than just digital technologies.
Adapt and Disrupt Business Processes
Insurers are already facing a number of challenges related to no- KYC in terms of the validation and verification of documents. Managing the issue will require the insurer to adapt and disrupt some of its legacy business processes. It’s not enough to simply implement a new system. An insurtech company insurer must be able to disrupt its own processes. It will have to work with an external network to do so. This way, the insurers will be able to take a step towards the fintech revolution.
Keep Track of Renewal Information
Organizations Insurers not aware of insurtech must work with brokers to obtain renewal information and other critical data. The issue of contact-ability retention is especially problematic for insurers not primarily dealing with life insurance technology. Without a reliable and secure data pipeline, brokers will have difficulty providing administrative services. Insurers should consider exploring blockchain technology, which holds tremendous promise for transactions involving multiple parties and no central trusted authority. Further, they should look for ways to minimize the amount of information they need from brokers and make use of publicly available information.
Make Use of Blockchain Technology
The blockchain has many advantages for KYC processes. The immutability of the network creates trust among parties. By eliminating secondary validation and cross-checking, KYC blockchain software eliminates the need for manual processes. Furthermore, it makes reporting and communication more efficient and prevents mistakes or fraud. Blockchain technology comprises the potential to reshape the way KYC processes are conducted. It allows for decentralized, automated data validation and full control over personal data. In addition, financial institutions are looking to utilize innovative technologies that will improve the way they do business. By embracing Blockchain technology, these organizations can increase transparency and reduce the risk of financial fraud and crime.
A key aspect of blockchain is that it can execute operational and control processes. By codifying workflow routing and KYC controls in smart contracts, businesses can automate KYC. This will reduce the need for periodic reviews. By utilizing the technology, more financial services companies can also implement multilingual solutions. By implementing the technology, banks and other accredited organizations can offer a better customer experience. While the future of Blockchain for KYC is uncertain, it will be a game-changer for the financial services industry.
Endnotes
Despite the challenges and opportunities, this trend is a major challenge to insurers, specifically in terms of the verification of documents. Insurers must adapt to this new reality. They must develop smart contracts and mobile applications to manage customer interactions with their clients. Insurers should use their private key to grant network access to their customers. Then, they can build smart contracts that trigger a claim process based on data provided by sensors linked to the internet of things.