Digitalization Drive in Insurance Industry
Digital transformation of marketing channels has brought a change in consumer expectations. Going digital calls for revised culture and process of work. Industries across sectors are reaping the benefits of digitization.
A digital transformation in the insurance industry refers to an
outside-in approach in line with a customer-centric view of the
business. Development with new technology helps in bringing innovation
and therefore creating new revenue streams.
This process of digitalization however, is very challenging.
According to a 2013 Ernst and Young survey, over 100 companies in the
insurance industry showcased their preparedness for digital
transformation. According to the survey, 79% of insurance companies
understand the importance of going digital but are lagging far behind.
A comprehensive digital transformation in the insurance industry
includes a transformation of core insurance applications, customer
service as well as claim operations. Insurance companies hold vast data
pertaining to business process management, analytics,
mobile technologies, and business applications.
Insurance companies need to focus on digital methods of garnering,
processing and delivering information. This requires a comprehensive
evaluation of existing tools used, process of managing documents and
channels of communication. In totality, the key
element is in transforming analyzed behavioral pattern of insurance
customers and strategies of business models to digital readiness.
Need of digital capacity:
Levels of digital maturity in the Insurance industry however, needs
analysis on customer engagement, utilization of mobile and the social
media spectrum. EY Global Insurance Digital Survey 2013 states that
majority of insurance companies, about 80%, do not
have a structured digital operating model.
Internal factors affecting the insurance industry in going digital:
In the insurance industry, progress on the digital front can be
challenged by internal factors. This includes legacy technology, speed
of delivery viz. turn-around time and digital fitness. An emphasis
towards a synergy in digital innovation can grab opportunities
as they come.
Enhancing customer experience:
Main components of a successful digital strategy include enhancing
customer experience and focused management of customer relationship.
Owing to increasing market competitiveness in the insurance industry,
costs involved in acquiring customer share is rising.
Therefore, it becomes imperative for companies to retain customers.
This can happen with continuous improvement in delivering a better
customer experience that is digitally inclined.
Analytics for Digital Soundness:
Providing a seamless digital customer experience is possible
primarily with the help of unambiguous analytics. Market share analytics
with strategic segmentation is an essential element for digital
soundness followed by technical know-how and marketing competency.
Analytics lead optimum utilization of costs involved in a digital
Grasp the Social media wave:
With the growing usage of mobile and tablet devices, insurance
industry too needs to benefit from the social media and mobile wave.
Insurance enterprises today need to increasingly listen to the chatter
on social media to gauge customer feedback and also
measure brand sentiment. Social Media will play a huge role in shaping
consumer perceptions in the years to come.
Nous Infosystems offers comprehensive insurance
to bring about digital
transformation in the Insurance Industry.
We have implemented solutions such as Policy Administration systems,
Claims Management System for brokers, Rating Engine Development, Risk
Management Portals, BI dashboards and Social Collaboration solutions for Fortune 1000 insurance companies. Talk to us today if you are interested in
accelerating digital transformation within your enterprise.