The future can be difficult to predict, but it doesn’t have to be difficult to prepare for. Insurers are grappling with a challenging new business, investment and regulatory environment caused by the financial crisis. However, the industry faces a much broader problem. Demographic changes, growing power in emerging markets, and shifts in customer behavior will all help shape the long-term future of the sector.
Digital technology is a global megatrend that is transforming various industries, including the insurance sector. The insurance sector has been somewhat sluggish in IT adoption due to the rapid change in technology and the fact that distribution channels are still conservative (eg handled by agents and brokers and not really ready to adopt new technologies). However, customer adoption of digital technologies, including social media, smartphones, e-commerce, and more, enabled through cloud service models, e-commerce and mobility is impacting the technical and commercial capabilities of many insurance companies. Insurers are quickly taking advantage of this trend.
The factors driving these changes can be the following categories:
Social: The balance of power is directed towards the customer.
Technology: Advances in software and hardware that transform ‘big data’ into actionable insights.
Environment: More sophisticated hazard models and hazard pre-hazard injuries to address the increasing severity and frequency of catastrophic events.
Economy: The rise of economic and political power in emerging markets.
Politics: Harmonization, standardization and globalization of insurance markets.
Key business drivers for IT adoption in insurance:
Engage customers with multiple channels of customer interaction and include all age groups
Strategies that include increased investment in Internet and mobile channel strategies for faster and more immediate communication
We work with our partners to launch innovative products in areas such as microfinance, wealth management, and more.
Automate the underwriting process and predict real-time fraud analysis, risk analysis using data analytics and business intelligence (BI).
Explore cross-selling of insurance products, particularly in emerging markets such as India, by leveraging the bancassurance banking systems and regulations available in each country.
A joint Forrester and Accenture study found that 63% of insurance businesses report that they are ready to go more digital, but only 23% of these businesses report that they are ready. To accelerate this process and ensure a successful transition to digital workflows, there are several key areas insurers can expect to embrace as they seek to create more automated and user-friendly processes.
Accommodating cloud-based and on-premises infrastructure
According to PC World, just two years ago, 84% of enterprises were running in the cloud, and more than half of these enterprises reported that the cloud reduced the workload on their IT teams. However, IT teams in the insurance sector struggled with what information regulators could store in the cloud and on-premises. In addition, the proliferation of legacy technologies is challenging cloud-based approaches. According to a recent TrustMarque report, many insurance companies are using 40-year-old management technology designed to manage the claims process. This kind of technology stifles innovation, but insurance agents don’t immediately replace these mainframe technologies.
This year, as the insurance sector adopts more streamlined workflows, the use of technologies that can operate via hybrid cloud and on-premises increases significantly, ensuring maximum flexibility for customers and customers and strong adherence to what they must do at all times. You can expect Change government regulations within the insurance environment.
Automate business processes when needed
The key to moving to a more digital world and improving customer service is automating workflows when needed. The overuse of social media is on the rise, and across multiple channels, customers expect ultimate interaction and personalization from insurance agents and brokers.
Standard face-to-face interactions may be less common between insurers and customers, but relationships are still as important, if not as important, as in the past. As a result, insurance agents need more time to interact with customers and can spend less time sorting papers, scrolling through documents and figuring out claims processing.
Choosing programs and systems with customers in mind
A Forrester-Accenture report recently dubbed the year “the age of the customer,” where customer experience is at the heart of the digital movement. This means that technology and new digital processes cannot be implemented with a management-first mindset.
Think of something as simple as a digital application, for example. Some technologies may actually require three different phone numbers, but o
