Digital transformation is gaining traction and is a term that you have most likely already encountered. It has, in some way, transformed just about every industry, and the traditionally slow to modernize insurance industry is no exception.
One of the reasons for the increased need for automation can be attributed to COVID-19, as automation processes and practices are needed for companies to stay afloat and make business operations run more smoothly.
According to a Global Survey conducted by McKinsey, companies have had to accelerate the digitisation of their customer and supply-chain interactions of their internal operations by up to four years. Customers have now made a dramatic move toward online channels, with online engagement becoming a daily necessity due to the pandemic and work-from-home environment. Companies have shifted their focus to digital offerings, rather than product development.
There are numerous benefits for organisations that embrace digital solutions and allow for both customers and brokers to engage more effectively and efficiently. Some of these include:
Digital transformation of insurance operations is reshaping both the current and future state of the industry. These solutions assist insurers in creating features, functionalities, and applications that will help them stay competitive in their respective market. Operations are now streamlined, customer interactions can be conducted through chatbots, claims can be processed automatically, and brokers can collect all information, allowing them to work faster and more accurately. To win today’s market over, the insurance industry requires speed, efficiency, and ease of use.
Customers expect exceptional service and attention, with service being suited to their needs. Digital transformation has empowered insurers with the necessary tools to provide customers with more personalised services, without overextending their resources. With AI and machine learning, personalised experiences have become seamless for consumers and brokers alike. With robust data analytics and AI systems, marketing efforts can be tailored to reach the audiences they set out to impact.
Examples of personalised services include the ability to pay bills, view policies, and file claims via an app. Brokers can now receive and process all information on their end through one system. No more waiting on the phone, wondering if your claim is received and being processed; customers receive instant feedback, and brokers are able to do their jobs more efficiently and effectively.
With digitisation, the insurance industry is becoming both nimble and scalable at the back and front end of its operations. On the customer-facing front, insurers today offer service everywhere and anywhere through self-service dashboards and apps, allowing them to collect valuable data from customers via IoT-enabled devices. On the back end, brokers and insurers can make more accurate decisions about underwriting, policies, and new product offerings.
Digital transformation is assisting the industry in ‘future-proofing’ business, as the technologies available continue to evolve and offer more advanced opportunities for the future. With the foundation having been laid down by AI and machine learning, blockchain data, data analytics, and predictive analytics, insurers can adjust and transform with newer technologies and capabilities.
Customers have always been on the parallel road of organizations’ digital transformation journey, continuously embracing technologies at a high speed, with companies now having access to more meaningful customer data than ever before.
Whether customers are interacting with your company online or purchasing a product or service, all information is being received and analysed, and with the digital world growing at a rapid speed, insurers are adapting to change and offer their customers more efficient, and on-trend solutions, with the ability to connect and communicate in real-time.
With the collection of online data, we can learn more about our customer’s desires and behaviours.
Connected cloud computing can be considered less of a transformative trend, but more an evolution of cloud computing. Public and private clouds, or data centres are no longer the best option, as their needs vary, and a single choice becomes restrictive over time.
Cloud computing is a delivery model that allows insurers to facilitate or accelerate business transformation, through applications, data, and IT resources to users as services delivered over a network of self-service, economies of scale, and flexible sourcing. Virtual servers are now able to connect to massive data centres which have the infrastructure to store and protect data.
Cloud-based technology allows organisations to meet evolving needs, such as cloud-sourced storage, networking, or digital security. Connected clouds and cloud computing intend to meet companies’ evolving needs. No matter which workloads are being run in a cloud, the experience for those utilising the applications needs to be seamless, secure, and streamlined, which is precisely what a cloud allows for.
As consumers expect high levels of speed with personalized attention, the demand for automation has increased dramatically. Through automation, insurance companies can provide efficient and effective technology and techniques to consumers, such as automating underwriting rules and driving referrals through the efficient workflow process. Digital transformation has also allowed for the automatic opening of claims coverage, live chat functions and instant communications, and the automation of billing.
“Digital Transformation (DX) is so much more than providing a digital client experience or digitizing a few processes - it affects the entire insurance organization. Historic processes need to be collapsed and rebuilt and supported by the change management of all skills within the organization.”, says Graham Harvey, CEO of Cardinal.
Cardinal aims to future proof insurance businesses with technology and software solutions. With a focus on creating digital-first solutions that meet the needs of new and existing clients, Cardinal has embarked on a digitally transformative journey and created the iPlatform to suit consumer needs.
The iPlatform is a collection of pre-built, validated, continually innovated, and trusted apps, services, and third-party integrations. The iPlatform propels your business from having a standalone insurance administration system of record to having your very own platform and customized ecosystem of integrated, ‘best-of-breed’ solutions, and partners.
With multiple categories and apps across a wide spectrum of capabilities, the iPlatform provides you with options on how to build your ecosystem, whilst wrapping layers of value around your companies’ core capabilities.
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