Historically, insurance companies depended on manual processes and legacy systems which stored data separately and organized it into categories, such as home, auto, boat, and more. However, New Business, Underwriting, and Claims processers lack of integrated data lead to missed sales opportunities, higher claims costs, and increased underwriting and operational inefficiencies.
Many companies addressed these issues through business transformation. New platforms offered improved customer experience with self-service functionality and data consolidation. This led to improved operational efficiencies, increased premium by attracting new clients, and enhanced risk management decisions through greater use of data analysis.
Digital transformation allows companies to take the next big leap. Using intelligent automation technology, (e.g., AI, machine learning, data automation, RPAs, etc.) to analyze their accumulated data to identify ways to:
- Enhance customer experience through product simplification and hyper-personalization.
Younger generations expect hyper-personalization and omnichannel distribution abilities. Intelligent automation allows carriers to better understand and respond with new products and services that will attract them.
- Making better underwriting decisions has always a hot topic. Driven by a combination of new, ubiquitous data sources, an aging underwriting talent pool and a demand from the C-suite for more science and less judgement. The focus is not on replacing the human talent but re-focusing it and arming it with better data and tools.
- Reducing Claims Costs is necessary during these post-pandemic times. Earnings volatility has been rising since the financial crisis as low investment yields can no longer hide spikes in claims. Powered by IoT and sophisticated data analytics there are renewed efforts applied to reducing both the volume and value of claims. Claims processing is also evolving through better triaging of effort, loss and exposure analytics, and automation
- Driving better business decisions by utilizing and monetizing data. Insurers across both Life and P&C businesses are utilizing technology to drive better business decisions across Claims, Underwriting and Finance. Embracing data science, through prescriptive analytics, many Insurers are looking to monetize their data sets. Many of the major Brokers and Re-insurers are pivoting to being risk data providers
Capco has worked with clients to address their pain points by providing and implementing digitalization strategies, including:
- Digitizing and automating the end-to-end claims process
- Creating and implementing a digital enterprise customer experience
- Transforming the digital account servicing function
Digitally transforming insurance requires a comprehensive strategy and a diligent execution. Only when mastering this transformation journey, insurers will remain competitive and gain advantages in the market.