The insurance industry has dramatically evolved over the past several years. Today it is embracing digital transformation in various ways to address complex challenges from consumers, regulatory and digital ecosystem. There is also a need for agile workflows, better data access & processing, and advanced data analytics to improve risk assessment and informed decision-making.
To realize the actual advantage of digitalization in the insurance industry, it would require data analytics, reporting on the financial performance of products (BI), and strategic plans to offer a bird’s eye view of all the micro and macro indicators of the business.
Through this article, we wish to address, what lies ahead, and what must the insurance leaders prepare for to develop sustainable business models.
Here’s what we’ll cover
Our team of specialists understands the core industry needs & can help you develop a solution tailored to your needs.
The acceptance of the idea of change has been one of the biggest industry challenges. However, due to the pandemic, more players in the industry were forced to embrace change and address technological challenges.
Listed are some of the hurdles we believe industry players will face:
The consumers of today expect information to be easily accessible & available across devices. That means even traditional insurers have plenty of opportunities to innovate & change the way they interact with their customers. Currently, the average lifecycle of the development of an insurance policy to actual delivery to a customer takes typically four to eight weeks. In cases where the underwriter requires the support of an Attending Physician Statement (APS) with proof of health history, it adds another three to four weeks to the delay. The reason for this delay is the use of manual processes. However, the insurers of today cannot afford to wait this long to issue a policy. That’s where the need arises for optimized underwriting processes.
Just like the above, there are several advantages for business. For instance, customers would expect convenience & hassle-free upload of documents, easy payment options, seamless claims processing and receiving updates & reminders on their policies. Early adopters of digital transformation would accelerate their processes to reap long-term rewards. Here’s a look at how it can impact your business:
Now that you have an understanding of the benefits and challenges, let’s discuss the core aspects of the required strategy for business.
Emerging technologies like AI, machine learning, cloud, predictive analytics, big data and more enable digital transformation in insurance. For insurers with IT systems, the idea of evolving digitally may sound like a daunting task. However, the shift is more seamless. With a cloud-based infrastructure in place, you can take on an agile approach that helps in driving digital transformation. For example, you can consider one part of your business and enable it with a solution that helps you collect & store your data in one place. It does not matter where or when you begin. By leveraging these technologies, you will be able to stay relevant & be ready to innovate when the time is right.
To achieve true digital transformation, an organization requires a new way of thinking and operating style that supports a wider market reach strategy. Listed are some of the points in this reference;
Let’s discuss some of the practical use cases that CIOs should know about and how can they be put in action to create the difference.
The gap between insurers – digitally enabled and those that are not is accelerating. And it is no longer a question of replacing just the legacy core systems. But it’s practically about addressing the how aspect. Many insurance frims — especially small-to-medium carriers and those with smaller set up with the right tech talent are effectively leapfrogging the competition. They are addressing the concerns around revenue, retention, and customer experience by implementing advanced technology.
We combine our domain expertise, strong partnerships in the industry and technology prowess to develop custom solutions that help insurers digitally transform. Our approach rests on the understanding of APIs, Analytics, Data Virtualization, Agile Delivery and DevOps to meet the growing needs of global insurers.
With deep industry insights, we can help identify potential challenges & help you design a solution that puts you in the market in no time.