Better customer experiences built on data-driven insights
Insurance is all about preparing for the unforeseen, but even insurers can’t predict the future with total certainty. And with climate-change-related weather abnormalities, a lingering global pandemic and ongoing regulatory changes impacting the industry, the future is increasingly uncertain, and the job of insurance is growing in complexity.
Nimble industry entrants from Silicon Valley and beyond are nipping at the heels of institutional insurers, offering slick and simple user experiences. Spoiled for choice, customers now expect the rapid response times, intuitive interfaces and personalized experiences that they receive from their favorite apps. However, in an ever-evolving regulatory landscape, and weighed down by aging IT infrastructures, institutional insurers are struggling to play catch up.
Fortunately, traditional insurers have something the “insurtech” upstarts don’t: trusted brands. And in this business, trust goes a long way. If insurers get the modernization piece right, they could establish thriving new relationships with agile disruptors along the way.
To develop better customer experiences, insurers need a single, actionable view of their customers. But so often their view is fragmented, with mountains of customer data spread across many silos and technologies in various states of upkeep. Incorporating new technology into an aging infrastructure can be daunting, and there’s little room for error. And in this industry, there’s no room for security breaches.
A holistic approach
New competitors are redefining what it means to be an insurance company. The time is now for traditional insurers to take a step back, reflect on core business assumptions and rethink how the IT estate needs to change to meet new market demands. This transformation is an opportunity to reduce costs, expand profits and enablenew business models.
A holistic approach is needed to tear down silos and integrate and automate workflows across the organization. Such efforts must be executed in priority of the highest return on investment (ROI), with new architectures that allow older technologies to work alongside new ones.
Transforming IT infrastructures will enable insurers to be more operationally efficient and resilient to market disruptions. What’s more, flexible product development workflows will enable insurers to respond to rate changes and introduce new products faster. AI-infused products will yield better customer experiences and reduce costs by providing policies that are more well-matched to customer needs.
But achieving these goals is about more than a few discrete IT projects. Together they represent an end-to-end business transformation. Daunting, but with the right approach and the right technology partners, it’s doable.
In this paper, we’ll discuss three industry imperatives that insurance companies need to consider right now: digital transformation, core modernization and cloud innovation.