The dirty little secret of the insurance industry is out: when it comes to sustainable, profitable growth, customer experience is significantly more important than the product. The power lies in the hands of the customer—and the faster insurers accept that fact, the faster they can make the shift toward digital transformation and improved profitability.
This assessment and many others are now being illuminated with a variety of imperatives for digital success in insurance, including:
- The all-important four C’s of digital transformation in insurance: customers, competitors, costs and compliance
- The impact of mobile on acquisition, retention and cross-selling
- A wellspring of critical facts and figures, including information about the percentage of insurers comprehensively investing in digital technologies
The Power of Information
While the aforementioned power lies in the hands of the customer, digital transformation delivers an equally valuable gift to the hands of the insurer: information. It has been predicted that there will be more than 40 zettabytes (one zettabyte is equivalent to 1000 to the seventh power) of data by 2022, and the digitisation of insurance data will serve as a game-changer for insurers. This tidal wave of data can be harnessed to improve the basics of insurance—an advantage that simply wouldn’t be realistic or even conceivable where the data to remain paper-based and analogue.
A Purposeful Approach to Digital Transformation
One of the key findings is organisational readiness for digital transformation is imperative to its success. An insurance company would be unwise to expect to achieve a viable transformation in piecemeal or without a legitimate strategy. In fact, three critical success factors are now well understood when it comes to creating organisational readiness for digital transformation, one of which is to reject the notion that viable transformation can be achieved with an ad hoc approach. That’s change, not transformation.
A comprehensive approach to both customer experience and back-end operations like policy maintenance and claims processing is likely to include digital options like:
- Conversational AI
- Intelligent Documents Processing
- Process automation
- Customer communications management
According to Accenture, 75% of insurers believe that, in the future, industry boundaries will dramatically blur as digital platforms reshape the industry into interconnected ecosystems. That presents an opportunity. Insurance organisations can either embrace this disruption of the status quo and use it as a means to explore new frontiers in selling solutions (as opposed to just products and services), or they can simply fade away.
If your insurance organisation is seeking thought leadership and guidance on digital transformation, please contact Cloudhub360, the Intelligent Hyper Automation specialists, today!