Digital transformation is the catalyst for success
The key to unlocking value through insurer transformation
If the past few years have shown us anything, it’s that digital transformation is the catalyst for success. And in turn, technology is the key to transformation. Without technology, insurers exist upon reserves of untapped potential, perpetually skimming what little efficiencies they can from legacy systems on the surface, meanwhile the real value lies in the digital potential beneath— which can be tapped into with the help of insurtech.
The insurance industry is under enormous pressure to create value. Whether it’s for their customers, their shareholders, or themselves, the onus is on them to deliver an efficient service that stacks up to the sophisticated digital experiences consumers have come to expect. Only those who can do this will win out in the long term, building greater loyalty, creating cost efficiencies and boosting profitability.
However, in order to reap the benefits of the digital era, firms need to leverage technology to make more informed decisions, automate processes, improve customer experiences, strengthen internal networks, and scale profitably. And with insurtech, they can do it all quickly.
So, what exactly can digital transformation do for you as an insurer?
Digital transformation increases efficiency
Arguably the greatest value you can achieve from insurer transformation is efficiency. Enabled by the machine learning and predictive analytics underpinning AI, insurtech can improve the efficiency of essentially all of your insurance operations. From processing claims and policy writing, to streamlining customer communications through live chat and digital assistants.
While efficiency can be unlocked across the board through transformation, there are three key benefits.
Enhanced data collection
Insurers by nature collect an exorbitant amount of customer data. One thing insurtech can do is analyse and leverage this data to benefit your business. Bringing in this extra layer of tech creates a system for gathering and incorporating intel at a higher level, translating raw data into insights that can be converted into value across multiple touchpoints.
Greater resource management
Digital transformation not only streamlines processes, but also modernises operations, centralising software, databases, and applications into the one business suite. A recent survey conducted by MuleSoft found that in 2020 the average number of applications used by enterprise businesses was 900, making it near impossible to provide a consistent experience. This is where digital transformation brings a level of integration that creates a central repository for business intelligence.
Increased profits
It’s no secret that intelligent data collection and greater resource management can be unlocked by digital transformation, but collective efficiencies have the power to improve the overall bottom line. A Gartner survey shows that 56% of CEOs say digital improvements have led to increased revenue, meanwhile an MIT report found that digitally mature companies are 26% more profitable than their less mature counterparts.
Digital transformation enhances personalisation
We’ve companies like Uber and Amazon to thank for escalating customer expectations. We live in the era of on-demand services, and this level of instantaneous and personalised customer satisfaction has set an incredibly high bar for other industries. But without digital transformation, it’s a bar you’ll never reach.
Insurtech is empowering insurers with the tools they need to meet these growing expectations. Thanks to the intuitive intelligence of AI and machine learning, analogue and laborious tasks are out the window! Instead, customers can now pay bills, view policies and file claims from the palm of their hand, while brokers can in turn receive and process all information obtained in the one system.
The elimination of time-consuming tasks and the ability to invite instant feedback means a technology-led insurer is more efficient and more effective. This also applies to their marketing efforts which—thanks to enhanced personalisation—means they can now reach greater and more relevant audiences.
This added value then gives rise to one of the biggest benefits of all.
Data-driven customer insights
With the ability to collect and analyse customer information, insurers are better able to better understand the people they serve, allowing them to forge a customer-centric business strategy. These strategies then use this data to provide more relevant, personalised, and agile content, that can in turn drive substantial company growth.
Digital transformation helps insurers scale operations
By optimising the way you work with the help of powerful technology (and doing away with ‘clunky’ legacy systems), insurers are better equipped to sidestep and expand more efficiently, while enjoying greater flexibility when it comes to meeting evolving demands. There are two valuable benefits that can be gained by this renewed scalability.
A better customer experience
As we’ve already mentioned, customer expectations have never been higher. But digital transformation can bring about instantaneous satisfaction through self-service dashboards and apps that can collect valuable data from customers via IoT-enabled devices and even wearables. This ability to boost customer experience is particularly critical to insurer performance and success as an Accenture report found that CX has emerged as the key driver of sustainable business growth.
A stronger digital culture
By incorporating more intelligent technology in both front-end and back-end operations and equipping your team with the right tools for their environment and industry, it’s now able to efficiently collaborate both externally and internally, while also collectively advancing the entire organisation. While it may simply sound like a ‘nice-to-have’, a strong digital culture is what influences valuable upskilling and digital learning further down the track—all to the benefit of the wider business.
Digital transformation improves insurer agility
As we’ve already touched on with the renewed flexibility granted by digital transformation, in the same vein it can also help insurers ‘future-proof’ themselves from being knocked out of the race by technological advancements they can’t compete against. Instead, being properly equipped to take advantage of digital opportunities presented by AI, machine learning, blockchain data, data analytics, and predictive analytics will empower insurers with priceless agility that in turn helps them swiftly adopt new insurance technologies and capabilities.
This improved agility brings about two valuable benefits.
A clearer pathway to improvement
The priceless agility afforded by digital transformation can in turn improve speed-to-market and make adopting Continuous Improvement (CI) strategies more seamless. All this fuels faster innovation and adaptation, clearing the way (quickly) for sustainable improvement.
Improved productivity
Digital transformation will continuously ensure your team members are equipped with the right symbiotic tech tools that together streamline workflow and improve productivity. By constantly identifying manual tasks that can be automated and integrating data throughout the organisation, this digital agility empowers team members to work more efficiently and adapt to new tech sooner.
A realistic pathway to achieve digital transformation
As you’ve now no doubt realised, digital transformation is infinitely valuable. Not just in terms of internal efficiency, but in customer satisfaction and ability to sustainably compete. Nevertheless, the full benefit of digital transformation can’t be realised without integrating this technology across all levels and functions of your enterprise, informing your strategy, structure, operations, and culture — something an insurtech partner, like Axe Group, can help you achieve at full scale.