Modernization is sweeping the insurance industry, digitally changing the way operations are streamlined, customer interactions are performed, and claims are processed.
That The traditional, robust insurance world is shifting away from manually driven processes backed by legacy systems (with decades-old technology) towards a more agile and fast-paced environment, relying on digitalization to deliver new, fun products, business models and services. . customers with satisfying experiences.
Better yet, technology and innovation are creating waves in this normally rigid world — paving the way for what many call ‘insurtech’, technological innovations created and implemented to improve operational efficiency and support the entire customer experience.
According to Gartner, digital transformation is The most important goals for insurance CIOs. “Staying resilient while adapting to changing customer and market needs will force insurers to rethink their digital platform strategy.”
Same as fintech is Pushing the boundaries of the financial and banking sector, insurtech is expanding boundaries by providing better value, more flexibility for customers, and more personalized experiences and results — and it’s all about data.
In fact, “a flexible data model is the key to really driving change in the industry,” according to Endava’s head of APAC sales, Mike Young.
Endava provides digital transformation consulting, agile software development services, and various automation solutions — and has a mission to increase digital empowerment in the insurance arena.
“Insurance has always been about assessing risk and the proliferation of data provides an unparalleled opportunity to accurately predict outcomes. Insurance companies that embrace this and find flexible ways to leverage data will quickly rise to the top of the industry,” he said.
What’s more, insurance that focuses on value not price — and harness the power of technology — will be the one to position themselves as something more than just an insurance broker, according to Young.
“The most effective way to achieve this is through technological innovation. Instead of simply being a means of exchanging risk, insurers will start using technology to market themselves as something that is good for their customers and for society as a whole.”
Indeed, it is all about “reimagining the relationship between humans and technology”, and using the power of data through digital enablement to personalize experiences, Young said.
“Digital transformation is personalizing an industry based on statistics and averages.
“Some examples include predictive analytics and how information can be customized to put the customer at the center of the interaction. Undoubtedly, digitization can deepen the industry’s understanding of its customers and enable a better experience for all.”
Digital technologies that stand out in this sector include artificial intelligence (AI); machine learning (ML); low code; automation; Internet of Things (IoT); social media data; telematics; chat bots; and drones.
In addition, the launch of CDR (Consumer Data Rights) per sector, which has already been rolled out in banking and energy, is expected to modernize the insurance space. — giving consumers more control over their data.
Find the right partner
While the insurance industry is no stranger to disruption (and having had to pivot and adapt quickly due to the global pandemic), many players are still procrastinating, largely due to the fact that certain data platforms and tools fail when they come. capability or process being set.
So, are the majority of insurance players on the same page? Not even close.
The insurance sector is lagging behind most other sectors in its digital transformation.
“Many insurance industries have failed to keep pace with the rapid digitization of other industries. However, this cannot remain so forever. As new technologies become more prevalent, the risks covered by insurers will expand, forcing a rapid industry evolution.” Young said.
The key is finding the right partners to help digitize core capabilities, deliver more digital self-service tools, and create personalized products and experiences for customers.
“A number of programs that have been attempted internally, either fail or take tripling the time and budget to deliver half the functionality.
“Unless you are a digitally born insurance company, chances are there is a lot of legacy technology that needs to be updated and modernized to modulate the service, open it up to third-party partners, and sequence out the underlying data model. Historically, insurance companies have had a poor track record of delivering major transformation programs.”
Specialist partners are also important for insurance companies embarking on a digital transformation journey – given the massive skills shortage that is wreaking havoc around the world and closer to home in Australia.
According to the Tech Council of Australia, Australia will need one million people in technology jobs by 2025, meaning around 260,000 people will need to enter Australia’s tech workforce before that date.
“Finding a partner who understands the business goals you want to achieve is essential in any digital journey. For insurance companies, they face the need to transform their own technology while adapting to changes in the technology of the companies and consumers they cover. This two-front change demands a nuanced understanding of the challenges faced by the industry.” Young said.
“It is evident that valuing the customer experience, valuing supporting data, developing the right technology and repositioning insurance as a partnership are important concepts that industry leaders can leverage to drive growth.”
To read about how Endava can position your business at the forefront of innovation, see here: