Adapting for post-pandemic growth
How can insurers keep growing and use the pandemic to speed up digitalization
The pandemic have provided opportunities for insurers to grow and boost customer experience
According to Deloittes Insurance Industry Outlook 2022; among the 424 insurance respondents surveyed globally, one third expects revenues to be significantly higher 2022.
Insurers are becoming more comfortable with the usage of data-driven metrics and utilizing it for decision making in underwriting, pricing, marketing and claims. The impact of utilizing data-driven recommendations has a significant impact on the insurance value chain, especially if it is deployed correctly. In claims, processing data has become an important building block to reduce wait times and increase the accuracy of claims valuations, at the same time it can also help to signal any red flags about potential fraudulent submissions.
While some may believe that systems could be questioned on the fairness and accuracy of the data-driven recommendations, insurers need to ensure that decision-making is equitable and fair to policyholders and does not result in additional compliance and reputational risk in today’s highly social and connected society.
Cloud is the foundation for digital transformation
In the recent study, 72% of insurance professionals plan to increase spendings on cloud. Moving from legacy systems to the cloud is not only considered vital for digital transformation but also for achieving efficiency goals and operational flexibility. Moving towards automation is a key enabler for both workforce efficiency, improved expense management, speed and scaling of the businesses. However, fairly a small portion of insurers has, for instance, claims management systems on the cloud.
Accelerate digital strategies while at the same time keeping the human touch
Policyholders are more than ever digitally mature and can handle insurance tasks online thanks to Covid-19. Enabling digital capabilities to meet policyholders demands and expectations should be a part of the company’s wider business transformation. However, insurers can’t neglect the value of human touch. Repetitive minor insurance tasks should be incorporated in the automation workflow while the complex and in many cases sensitive parts of the insurance lifecycle still needs personalization.