Small changes can make a big difference
Identifying the potential for change is a key driver of decision-making and the awareness of megatrends is as crucial to the insurance industry as it is to many other organizations. Megatrends are structural shifts that are longer term in nature and have irreversible consequences for the world around us.
The pandemic saw increased incorporation of digital tools stretching across multiple industries. Tech companies strengthened their position among a wide array of customers and communication through digital platforms became even more pronounced. The frequency of interactions and the level of personalization have dramatically changed. The risk of disruptors from once only vaguely related industries has increased and new competitors might be hard to identify.
“Several megatrends are shaping a new operating environment for insurers that is hugely disruptive and that challenges traditional ways of value creation” according to a report by McKinsey & Company.
Customers today demand mobile yet personal as well as quick but sustainable processing from companies in most sectors, the insurance industry included. Additional IT investments are needed to digitalize and automate processes to stay in the game. To create these solutions insurers need to attract the right talent, especially in areas such as cloud computing. However, Deloitte’s global survey found that it’s getting harder to acquire the candidates needed which could undermine transformation efforts.
By adopting new models for interaction that adhere to the desires of both customers and employees, the insurance companies could improve operational efficiency and customer experience simultaneously.
Besides the quick and ever-growing developments in tech, customers today are increasingly aware of how climate change may impact their daily life and the planet as a whole. Therefore customers find both user experience and sustainability to be self-evident also when purchasing services such as insurance. As a medium to large insurance company, it can seem daunting to revisit established processes and tools to keep up with these profound developments. But there are ways to deal with it.
As “Insuretechs are driving digital innovation and disruption in the industry (…) enabling them to solve customer pain points through a digitally enhanced client experience could pose a competitive threat to incumbents.” – McKinsey & Company
By starting small and prioritizing important pain points with big potential such as the areas of customer experience, employee satisfaction and sustainability outlined above much can be achieved. Maybe building on the various digital adaptations implemented during the pandemic to support the virtual workplace and customer engagement environment by refining and scaling the technology could be one way to go.
By embracing new ways of interacting with customers and working with employees in well-defined areas with a clear prospect of ROI, much can be achieved in a short time frame without losing out on long-term potential.
At the core of every carrier’s operation, claims handling provides plenty of potential for automation and simplification. Both customers and employees greatly benefit from quicker and more efficient claims processing, reducing time-consuming manual tasks. Internally new technology should be considered a helping hand that let employees focus more on personal customer service to increase the feeling of human connection when needed and preferred. In other words, a win-win type of situation for both employees and customers.
Also, implementing low-barrier ways of settling claims sustainably enables the insurance provider to cost-effectively achieve ESG related goals and support marketing initiatives.
Megatrends are not equal to mega change
To summarize, it’s not easy to dissect megatrends or know where to start. But responding to megatrends doesn’t necessarily have to mean organizational mega change.
As a hands-on approach to some of these most prominent transformational forces of our time, providing claims departments with cloud-based tools that assist adjusters with quick, transparent and accurate claims valuation including sustainable claims settlement seems like low hanging fruit in context.
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