Technology remains a key catalyst to revive the Insurance industry
AUTHOR: Aftab Khan, 4impact Insurance Lead
08 March 2021
While COVID-19 has negatively impacted the Insurance value chain, the same adversity will present the sector with opportunities to benefit from in the longer term, with investments in technology being the catalyst in ensuring these opportunities are realized.
Insurance traditionally has been looked at as slow, old fashioned and ineffective. Customers are continually looking for different type of engagement with their insurers, as technology has broken the industry barriers. So, an insurer’s experience delivery should be on par with not its immediate peers but with companies like Amazon and Apple who have set the bar high for others to follow suit. Unlike other industries where one could deliver a digital transformation project by simply making cosmetic changes to legacy system with a modern UI on the top, it is not the case within Insurance.
In the digital era, price-oriented consumers are increasingly bypassing intermediaries and purchasing products directly. While both consumers and businesses are looking for good-value insurance products, trust in the provider is a key consideration for decision making – especially when it comes to claims payouts.
Slow incumbents will be among losers while new age insurers like Ping An and Lemonade that have made investments in technology central to their product offerings and back-end operations will continue to challenge the current business models. For instance, Traditional core systems are complex requiring large teams of people to implement, integrate and support. Many a times, Insurers try to build internal capabilities to manage these but with little success or added overheads.
It is also important for insurers to continually assess their core system capabilities around Policy, Billing & Claims management. Some insurers have found solace in running legacy policy systems in combination with new age claim systems. This half-hearted approach fails to have the full impact intended to improve the overall operational efficiency and customer experience eventually impacting the profitability of the business. New age platforms empower insurers to ideate, define, launch and test new insurance products in shortest amount of time. Implementing or upgrading to modern core systems requires deep industry expertise and technological know-how to keep close tab on advancements in different lines of business and regulations. Insurers can no longer afford to have failed implementations, ineffective project deliveries and lack of subject matter expertise among its resources.
A new era for finance is upon us
As we enter a new era in insurance, product delivery cycle times are much faster and changing the competitive landscape faster than ever. Our goal at 4impact is to provide insurers with resources, subject matter and technological expertise that enables them to innovate and evolve as fast as their business.
In wake of the current situation there is increased pressure on IT departments and business leaders to not just ensure operations run efficiently and effectively but also ensure that the decisions made by underwriters, claims adjusters, product owners are both timely & accurate. The opportunities for operational cost savings, delivering great employee and customer experiences are limitless when you embark on establishing right partnerships at the right time.