BAKU, Azerbaijan, May 31. The current era of digitalization has revolutionized the business sector, and Azerbaijani insurance companies also follow this tendency, insurance expert Kamran Babayev told Trend.
According to Babayev, the key success factor for insurance companies is to provide quality service to customers, both when concluding insurance contracts and in the event of insurance events.
"The most important thing in insurance is a quality service. Clients must see the attention and care from insurance companies. Clients pay the insurance premium namely for this. Otherwise, the company will never develop," he said.
Regarding the development of digital technologies and convenience for customers, the expert noted that in the context of digitalization and the increasing life dynamics, insurance companies should provide customers with maximum convenience and opportunities.
"Online conclusion of insurance contracts without having to leave your home or office, access to information about insurance contracts and payments, accelerated settlement of insured events - all this should become a common practical experience for clients," Babayev explained.
According to him, the COVID-19 pandemic has played an important role in the development of digital technologies for insurance companies.
"During and after the pandemic, the share of insurance claims settlement through mobile applications has significantly increased. The pandemic has consolidated the understanding of the need for digital and platform technologies in business, and has shown the importance of their implementation," he added.
The expert emphasized that chatbots, voice assistants, and analytical CRM (Customer Relationship Management) systems are all new tools actively introduced by insurance companies into their work.
"They help improve communication with customers and increase the effectiveness of interactions. The coming years will show that many interactions with insurance customers will be carried out through digital channels," Babayev said.
Speaking about the development prospects, the expert noted that in order to achieve the full potential of digitalization in insurance, it's necessary to optimize internal processes and robotize routine tasks.
"Developed countries are already actively using artificial intelligence for risk assessment, fraud control, and underwriting. The future of insurance companies represents the introduction of new technologies and expanding opportunities for customers," he said.
According to him, Azerbaijani insurance companies are on the track to a digital future, and their development provides prospects for improving service and efficiency of operations for the benefit of customers and the industry as a whole.
"However, despite the progress made, a big work is ahead in terms of digitalization. There is huge potential for the introduction of new technologies and innovations that can change the paradigm of how insurance companies operate," he concluded.
In 2015, Azerbaijan launched 12 Strategic Roadmaps to ensure economic diversification and sustainable economic growth. Digital transformation of the economy was embedded in this strategic reform agenda and a number of related reforms were implemented between 2016 and 2020.
Digitalization was covered under the Strategic Roadmap for Development of Telecommunications and Information Technologies (ICT Roadmap) and the Strategic Roadmap for the Production of Consumer Goods at the Level of Small and Medium Enterprises in the Republic of Azerbaijan (SME Roadmap).
The digital transformation is also envisaged by Azerbaijan 2030: National Priorities for Socio-Economic Development, a strategic policy document approved in February 2021.
The document identifies five priorities: sustainable growth and competitive economy; a society based on inclusive and social justice; competitive human capital and innovations; stronger development of Azerbaijan’s territories; and clean environment and green growth.
Besides, the document outlines the overall vision and should be followed by a set of five-year strategy documents and policy action plans, which should detail policy objectives and actions across different policy areas.
It's expected that the digitalization of the public and the private sector will be high on the reform agenda and the planned SME development strategy 2021-2025 will define a set of policy interventions to promote the uptake of digital technologies among SMEs and the general population.