Some insurance companies leverage individual digital capabilities to solve a specific business problem. Maybe they want a portal to offer millennials the online presence they require, or a customer engagement offering to boost their brand and cross-sell opportunities. This is how many insurers begin exploring the potential of digital offerings.
But there is another level to be reached. An all-encompassing digital approach that features integrated components functioning at their highest levels and complementing each other – and forward-thinking insurers are already beginning to add complementary new digital services, such as machine learning, robo-advice, Internet of Things-related applications, etc.
The first approach uses digital capabilities to solve a problem, as opposed to the second level, which means having a fully digital business. This “digital business” approach comes complete with process automation and business shortcuts.
Because all logic will be digital and consistent at this second level, insurers will be able to optimize a hybrid mix of different channels for customers, agents and other personnel (mobile phones, tablets, etc.).
The consulting firm Wavestone accurately summarizes the benefits of a totally digital business: “Many insurance companies have developed some form of digital capability, but very few have managed to develop a full end-to-end integrated digital strategy that is aligned to business goals, cross channels (covering presales and post-sales activities) and back-office processing and management of claims. To be effective, digital must be integrated at all levels and functions within an organization.”
It is extremely difficult to reach this pinnacle via a best of breed approach, as explained in our NEW white paper: A Pre-Integrated Suite is Key for Establishing a Digital Business.