The insurance industry has been slow to change. But going by the optimism and excitement at insurance conferences — among industry giants, insurtechs, thought-leaders, and decision-makers — over all the latest developments in the industry, we can safely say technology is driving change.
Across the industry, companies are trying to make up lost ground and accelerate digital transformation. They’re integrating emerging technologies into their operations while others are partnering with insurtechs to launch entirely new business models.
Carriers and insurers are asking: how can we harness innovation to meet business needs across the enterprise, including within customer experience?
Here are some insights into what industry leaders believe will shape the future of insurance.
AI Is the New Frontier for Insurance Innovation
AI is not coming for insurance — it is already here. Insurtechs, carriers (and brokers) are scaling their AI initiatives to solve business challenges — from unstructured data digitization and claims processing to fraud detection — and stay competitive.
The question on everyone’s mind is: how can we capitalize on AI and technology to reach the modern consumer?
Maximize all your data sources from agents to IoT to funnel into AI. Build volume and ensure quality that allows you to be predictive. Develop agile ecosystems through strategic adoption that support personalized, AI-powered customer experience from quote to claim. Balance artificial intelligence with human insight to seize opportunities from personalization to refined risk and streamlined claims.
While AI is a game-changer for the insurance industry, we all agree it must be deployed responsibly.
The Age of Pilots and Trials Is Over
Companies — even those slow to implement digital technologies — are now implementing solutions at breakneck speed. They are embracing customer experience (CX) and employee experience and moving from experimenting with “newer” technologies to integrating them into their solutions. Digital transformation has become a burning priority — many organizations are fully down the path to successful (and long-term) transformation journeys — and the momentum will likely continue. However, getting back to basics around data, process, and customer experience is potentially where a large portion of the industry will still see a “big bang,” as those may be areas many companies may still have to focus on.
Not All Automation Is Created Equal
Not every automation project succeeds: there are four common mistakes companies make.
The first mistake is automating without completely understanding the process you're trying to automate. Making room for all variations in a process is critical. That’s why processes may need to be redesigned first before automating them. Because "Automating a poorly designed process just makes bad things happen faster."
Secondly, only some have a quantifiable business case. Building an automation business case involves quantifying the impact automation will have on critical metrics than merely identifying areas for automation.
Instead of treating automation "as a hammer in search of a nail," where you go after as many automation opportunities as you can find, focus first on optimizing key processes as best as possible.
And finally, quantifying results and ROI is essential in the early days of implementation as this helps build a future business case for more resources.
While process metrics such as efficiency, throughput, and cost/effort are standard methods for measuring the impact of automation, business metrics such as customer satisfaction and revenue also need to be considered.
There’s a Hidden Opportunity in What You Already Know About Your Customers
On average, most insurance companies have few touchpoints with their customers. But through data and analytics, insurers can focus their efforts on driving growth through better customer experiences. With the right tools and data, they can improve this improved customer experience through analytics and make that experience stellar.
Data can help you unlock the full customer story and offer coverage that adds the most value to your business. When you look closely at every stage of your customer acquisition process, you get a better understanding of why they convert — and why they don't.
When you know why your prospects say "no," you can make improvements and convert them to "yes."
It’s well known that insurance companies make minimal investments in customer experience after they've acquired the customer. But if you must grow, you must acquire and retain, and continue to ask – "what else can we do?" Here’s where you can lean on data to guide you.
Murray, I've included your additional point as another key takeaway. I just streamlined the thought a little. Please let me know if it works. Thank you.
Murray Izenwasser, Senior Vice President, Digital Strategy
Sponsored by ITL Partner: OZ Digital Consulting