The Digital Revolution is Rocking Insurers
One Size Does NOT Fit All
The engagement model has changed – one size no longer fits all. Today’s savvy consumers demand the speed of service, personalisation, knowledge of their portfolio of products and the same level of digital experience that they are already receiving from most other industries (banking, retail, leisure, travel, etc.).
Customers and brokers demand immediacy and self-service in both personal and commercial lines in terms of the administration of their policies and claims. Delays in the underwriting decision, whether minutes or weeks (or even receiving a conditional quote), is a hangover from the analogue age. It is inefficient and does not meet customer expectations. The same is true about completing lengthy, paper-based claims forms, or detailed questions over the phone.
Traditional underwriting, pricing and claims models have changed in recent years and are now undergoing further developments, as a result of the digital revolution, with the proliferation of data enrichment, sophisticated pricing, the Internet of Things (IoT), etc.
Digital Transformation: Core is More
As detailed in a Sapiens blog post, core functionality has not fundamentally changed, it has just evolved and extended its accessibility. A complete digital platform should be constructed so that individual business processes, within the digital business model, are available across the core platform. The answer for insurers (across both general insurance and life) is NOT to diminish the importance of core to chase full digitalisation, but rather to understand that the two can form a perfect union.
For more information: Digital Transformation: Core is More!
The Revolution Will Be Insured
Insurers face a stark choice – they can throw away the useful processes of yesterday and embrace the new digital world… or they can cling to their current model and risk a customer revolution against them.
Sapiens is here to help! We can equip you with a powerful core policy admin. platform and flexible digital engagement solution that recognises differing preferences across target markets, which is a prerequisite in today’s market. The ability to deliver straightforward and easy to understand products aligned to customers’ needs is a “must” and it requires the ability to flex core products to align to these differing needs.
Sapiens’ solution provides the flexibility through ease of integration to:
- Refine applications to risk and demographic groupings
- Immediately deliver fully underwritten quotes
- Construct products to deliver against individual needs
Surviving Today’s Tumult
The insurance industry has long recognised the need to embrace technology, but has traditionally faced challenges that have prevented it from keeping pace with other sectors. Now the digital revolution is increasing the pace of change – the traditional underwriting journey is being consigned to the scrapheap as actuaries price risk based on a different, more relevant, current set of risk factors.
Buying and retaining insurance is now an ongoing, mutually beneficial partnership that opens the door to ongoing addition of value, including up-selling and cross-selling. To improve customer retention, insurers must engage with customers in a manner that is truly relevant for the customer and delivers exceptional value.
The ideal solution encompasses the blending together of digital technologies and data analytics to provide a flexible, responsive, on-demand, consumer interaction. It will provide an engagement revolution for the customer journey and ongoing partnership value.
It’s Time to Engage
General insurers want to provide the optimum experience to their customers. Infrequent contact with their existing customers reduces the opportunity to maximise cross- and up-sell, whilst also allowing the competition to grab increased market share. The wrong experience will turn customers off. However, with the right platform supporting the business strategy, including enablement of the expected customer experience, insurers can analyse a treasure trove of data on individual customers, providing opportunities for smarter, targeted offers. Insurers will be able to unlock their silos of information and synchronise disparate data-points, resulting in data-driven decision-making that will provide tangible business benefits.
For more information, please schedule a meeting with Sapiens.
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The Digital Revolution is Rocking Insurers