To compete in today’s competitive insurance market, insurers must simplify and personalize their insurance products. They must launch innovative products more frequently, based on various demands of the marketplace. Also, they need to know their customers and respond to their expectations on time to give them a positive experience. For modern insurance companies, this means creating insurance portals where customers can submit claims by themselves.
Understanding the Digital Customer
Customers expect a digital experience where they can get a policy serviced or claim manage efficiently and effectively. They are looking to have a different experience in their transactions. Consumers expect feedback from social media about what they are getting. Also, they want products or services to be easy to understand and buy those personalized to their requirements. And because many of them prefer to find a product at their desktop or mobile device, insurance companies must ensure the user interface is standardized and mobility-enabled.
Leveraging Data and Knowledge
Because of the demands of customers and the competitive landscape, insurance providers must leverage data and knowledge effectively and quickly to stay ahead. Although companies have performed basic metrics and reporting, they have been not sure how to leverage such data. These days, companies are looking to build predictive analytics capabilities to figure out customer behavior and expectations. The ability to conduct detailed insurance analytics depends on having a digital platform that can access data across the enterprise and benefit from cloud-first capabilities like artificial intelligence and machine learning.
A Progressive Transformation Journey
Digital transformation is not completed overnight and does not mean an overhaul of the entire legacy system. The reason is that regulators may still require some critical data to remain on-premises. Moreover, it might be important to move pure back-end operations from a legacy system to a cloud platform. The digital transformation journey implies a hybrid approach that combines legacy solutions and digital technologies.
Reaping the Benefits
Insurance companies that embrace digital transformation reap the benefits of cost competitiveness. This is possible as they leverage a cloud-based platform and pay based on consumption instead of for software licenses and infrastructure maintenance. Also, this transformation offers great speed to market that lets insurers conceptualize and launch products more rapidly, seeing a return on their investments sooner. Greater agility is another benefit that means consumers can buy products through any channel without disruption, ensuring a seamless journey from research to purchase.
These days, customers are digitally connected and aware of what new players are offering. Thus, insurance companies must embrace digital transformation to stay relevant.