Research claims that pandemic boosted the digitalization of insurance in Brazil

The covid-19 pandemic has driven the digitalization of the national insurance sector, reveals a study released by the National Confederation of Insurance Companies (Cnseg). Around 56.5% of companies in the insurance market indicated that more than 75% of their processes can now be carried out digitally. The survey started in May 2020 and ended in 2022.

It also shows that the safety factor motivated policy renewals and new hires, helping to reduce the need for face-to-face assistance, with the aim of protecting employees, brokers, professionals from other channels, customers and society in general.

47 companies were consulted, representing 86% of the national insurance sector. The survey was divided into two stages. The first looked at the actions of the Brazilian insurance sector in the context of the pandemic, related to customer service and provision of services to customers, policyholders, suppliers and brokers, by mapping the scenario before, during and after the health crisis. In the second phase, interviews were conducted with clients and trends for the insurance market were identified.

CNseg identified that most insurers and insurance brokers moved around three basic pillars: digitization, which made companies operate in digital environments; new products, centered on the creation of products focused on the “human”; and win-win, adoption of a model that benefited society through investment in people, technology and communication.

At the beginning of the pandemic, only 28% of the companies consulted had all their processes carried out digitally. With the advance of the pandemic, the percentage doubled, rising to 56%, when considering the implementation plan of companies within 12 months.

The CNseg study highlighted that, at the beginning of the health crisis, the digitization of redemption processes did not occur electronically in 34% of companies. Twelve months later, 23% of the companies intended to implement the redemption request digitally and 32% expressed the desire to implement at least part of the process for electronic assistance. Among the 28% who still do not intend to adopt digitalization, the justification is to reduce the risks of fraud in the processes.

Service

In the assessment of the leader of the working group responsible for the study by the Market Intelligence Commission (CIM), Gilberto Garcia, the survey shows that insurance groups have transformed during the pandemic to better serve their customers, seeking to improve their processes and ensure a higher level of policyholder satisfaction. The survey also resulted in the fact that, even with the digitization of processes, the customer does not want to lose contact with the broker. “They want a “phygital” experience, which unites the physical and the digital”.

The largest number of applications by companies at the time of a pandemic (79%) was directed to 24-hour assistance and 21% reported having made improvements to the services offered. Advances were also made in prior inspections and virtual risk inspection by 33% of those consulted, with another 43% already practicing this service format; 27% promoted differentiated discounts in loyalty programs, which were already implemented by 45% of the companies; and prior health assessment for life insurance, which was already practiced by 75% of companies, increased by 21%.

To ensure service to customers, suppliers and service providers, 81% of insurers planned to carry out improvements in information technology platforms, in order to guarantee the stability of systems; 70% on information protection and security; and 66% carried out the service through differentiated communication systems. Among the companies that work with life insurance, 71% adopted the expedited settlement of occurrences and 45% provided a differentiated service process for 24-hour services.

Other results

Other positive impacts of digitization were felt by companies in renewals (59%), in insurance subject to alterations (53%), and in portability of accumulation products (63%), because there was no loss of resources in the period. To achieve these results, companies promoted various financial actions, including the exclusion of charges due to installment rescheduling by 17% of companies, an action that was already carried out before the pandemic by 34% of respondents. Regarding the rescheduling of overdue installments, 45% reported having carried out an improvement or new action in this process.

During the study, 67% of companies observed a reduction in the frequency of occurrence notices (claims) in the peak months of the pandemic, between March and April 2020. Later, however, the numbers returned to stability. For 33% of the companies participating in the survey, the increase in cases occurred mainly in relation to life insurance. Gilberto Garcia indicated that this occurred because the companies disregarded the exclusion clause for events related to pandemics, such as covid-19.

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