Let’s assess the situation first – According to Salesforce, insurance-related stakeholders are:
- Wanting to be heard
- Placing value on a personal touch
- Concerned about annuity and variable life contracts
- Facing challenges for effective communication
- Witnessing overwhelmed advisors, support and compliance staffs
- Getting strained in manually intensive processes due to office closures
- Unclear about work-from-home policies
- Workforce compensation and similar coverages will continue to experience higher claim volumes.
- Travel policies: Low premium coverages such as travel policies will get affected due to the increase in significant expenses. Insurers like Allianz are now covering for coronavirus related delays or cancellations
- Life Insurance: Due to the widespread pandemic, life insurers will see a rise in long-term care, life and disability claims.
- Financial market situation: For insurers, volatility in the financial markets will impact investment income especially those who are life carriers with annuities and retirement products. Insurers should monitor their investment portfolios and consider diversifying if required.
- Online searches to assess life insurance providers and advisers
- Comparison of price and coverage options.
- Application for a life insurance or annuity policy on an insurer’s website.
- Others could look to take advantage of increasingly sophisticated Robo-advisory services.
Workforce Management: With the onset of a sudden WFH situation, insurers are finding it tough to manage their workforce.
Digital Transformation Strategies:
- Offer alternative staffing opportunities such as contract and freelance arrangements.
- Adopt digital transformation in business to alter the work-nature and talent-needs of the insurance industry. For example, in underwriting and claims processing, there is a growing demand for a workforce with higher-level skills such as analytics, AI, and other advanced technologies.
Digital Transformation Strategies:
- Insurers should evaluate the cloud as a platform for their modernized/legacy core systems. The cloud is more than a destination for data and applications; it is a business methodology which enables transformation in core systems while providing the computing power and flexibility to integrate more advanced technologies, such as machine learning and AI.
- Hence, Cloud Computing Services such as Amazon Web Services (AWS) can provide them with added agility and flexibility to meet their future requirements. Insurers who may already be building on-premises solutions should look to upgrade delivery capabilities using AWS Cloud Consulting Services or similar solutions.
- Also, hosting selected core applications on the cloud could help insurers be better prepared to meet future business transformation needs.
Thus, insurers are in the need for building customer-centric and end-to-end digital transformation strategies that are based on trust, transparency and convenience to deliver a unified customer experience across lines of business and functional silos.
Now, let’s have a look at how the insurance industry, in general, can use digital transformation strategies to overcome their challenges.
- Making customers digital-savvy. For example, with the use of mobile apps supported by Guidewire & Salesforce at the backend.
- Setup, streamline and automate online processes using chatbots for managing online claims while reducing data loss, call-centres’ workload, and increasing the information exchange between the customer rep and the policyholder.
- Real-time communication to reduce risk, and customer grievances.
To know more about how digital transformation can be made easy, please contact us at : email@example.com