By now, most insurers understand the benefits of digital transformation. Although these projects are by their very nature risky and can have serious repercussions for a business’ reputation, brand and data privacy, the benefits almost always outweigh the risks.
Achieving enhanced customer experience and reduced costs, for instance, is no small feat. But there is a bigger shift that is sometimes overlooked…
A digital transformation can be a “metamorphosis” for insurance personnel! They get to shed the anchor of decades-old legacy systems, and emerge from the metamorphosis like a butterfly emerging from its cocoon. Insurers can take advantage of the opportunity to optimise the planning and execution of sales and operations. A successful transformation often includes a redesign of the insurer’s operating model and organisational structure, as well. How is this major paradigm shift enacted?
Digitally-enabled IT systems improve internal and external customer satisfaction, build retention and increase sales revenue. Roll-outs are improved based on frequent feedback and productivity is increased. The pressure on service desks is reduced through managed services, self-sufficiency and automated processes.
Automated workflow and task management increases the accuracy of customer and policy data; and improves application processing. New products can be rapidly launched and benefits quickly realised.
Operational business processes are streamlined and bottlenecks are eliminated, allowing for changes to the insurer’s org structure, and costs are reduced with straight-through processing and improved transaction speeds. In conjunction, a multi-channel strategy maximises revenue and reduces overall expenses.
The latest third-party/insuretech innovations can be made available to insurers via a digital partner hub. By handing off the research and analysis of a multitude of third-party offerings, insurers benefit from a wide range of advanced technology, while focusing on their core business.
A transformation likely sounds good to many insurers, but it’s important to remember that it’s only achievable if you can maintain it. Your strategy must allow your organisation to make necessary changes to stay competitive in a sustainable way over the long-term.
This type of sustainability results from the integration of three main components – communication, technology and leadership – among three crucial types of stakeholders – executives, employees and consumers. This is key for true transformation.