The pandemic posed challenges for every company, but for P&C insurers, it might have been the wake-up call the industry needed to build more stable business models and technology infrastructure.
- As the COVID-19 pandemic shows no signs of abating, it’s changing business forever.
- Digital transformation is essential for P&C insurance carriers if they want to survive disruption in the future.
- The C-suite must be prepared for the financial pressures, modifications to their business model, and competitive landscape to come.
- Today’s and tomorrow’s business landscape requires the superlative customer service and business efficiencies that only intelligent automation can provide.
- Automated data analysis has wide applications, and its use in underwriting shows a customer retention improvement of 5% to 10%.
The COVID-19 pandemic has had a substantial impact on the way companies conduct business, and the P&C insurance industry is no exception. From equipping a remote workforce for collaboration and productivity to servicing customers with no face-to-face interaction, carriers scrambled to digitally transform, knowing it was essential not only for growth but their survival. Those who have failed to evolve are ill-prepared for what’s to come.
The future is uncertain, and P&C carriers with antiquated back-office operations and legacy technology will be unable to quickly respond to the evolving market and customer needs and demands. In addition, carriers without effective technology won’t be able to implement cost-efficient processes or provide the digital experience prospects, current customers, partners, and producers demand.
Nothing is more certain than uncertainty. To be resilient, flexible, and ready for whatever may come, carriers must invest in core modernization of their digital capabilities, and that includes intelligent automation, a stellar customer experience, and effective use of analytics.
Just as quickly as much of the world thinks they have a handle on the pandemic, a new variant emerges. This makes the trajectory of the virus difficult to ascertain, and the virus has already impacted every facet of business, from remote work to providing the optimum digital customer experience.
P&C executives must champion digital transformation. No matter what scenario evolves, digital technology adoption will continue to accelerate, and traditional P&C insurance companies will face increasing competition from digital and cloud-native companies. This conflict will drive the use and development of emerging technologies and higher levels of customer service, and for those lagging behind digitally, it can mean disaster.
To thrive now and in the future, savvy executives will concentrate on improving digital capabilities, operational efficiency, and efficacious use of analytics, all with an eye toward pleasing customers. Let’s talk about how to serve customers now and prepare for whatever comes next.
Intelligent automation (IA) is a combination of robotic process automation (RPA) and artificial intelligence (AI). These technologies work together to enable speedy end-to-end process automation. Repetitive tasks are performed more accurately and more quickly, and RPA-deployed robots mean your employees have the time to spend on tasks that need human traits that AI and its rule-based decisions just can’t perform.
IA means cost savings – work is performed 24/7 for less than you would pay staff – and has a quick ROI of between 30% and 200% in the first year. Also, ordinarily mistake-prone tasks are now error-free, something that not only boosts the bottom line but customer satisfaction as well by contributing to a frictionless digital journey.
It’s no secret to the C-suite that business customers want the same online buying experience they get from consumer sites. IA gives your sales reps and customer service agents the tools and information they need to serve customers quickly and accurately.
The current and future uncertainty in the P&C insurance industry means leaders should place a priority on the product, servicing, claims, and underwriting, all of which have an impact on customer retention, growth, and overall profitability. Your customers are everywhere and using desktop and laptop computers, smartphones, and tablets. With AI, you can create the same cohesive experience across all channels with chatbots, mobile apps, SaaS, and software.
In addition, IA is completely scalable. Through the use of chatbots, you can provide service to more people. These bots can collect information, respond automatically, answer simple questions, and provide agent prompts. Through the use of intelligent automation and data analytics in P&C insurance, a customized experience can be created with tailored content that will also inform future product offerings and innovation.
In the competitive world of P&C insurance, companies utilizing advanced data analytics are at the head of the pack. Digitized underwriting offers quite a boost – loss ratios improve 3% to 5%, new business premiums get a 10% to 15% boost, and customer retention increases by 5% to 10%.
The amount of data is huge, and no manual method could ever process it efficiently to glean the needed information, which is why automation is a must for advanced data analytics.
Effective data analytics that improves both the bottom line and the customer experience require combining data from disparate sources. The uncertainties that cloud both today’s and tomorrow’s P&C insurance business mean in-house data might not be an accurate measure of policy risk. This means bringing in third-party data.
Through intelligent automation that includes event stream processing, data can be leveraged from every part of your internal system. Your inside information is combined in real-time with outside data and analyzed and disseminated through advanced visualization.
This up-to-the-minute data gives executives the information they need to make informed decisions and forecast trends. When it comes to customer service, the more you know about the customer, the better you can serve them.
The future of P&C insurance may be hard to predict, but proactive leaders seeking to implement digital transformation know it begins with intelligent automation and digital transformation.
RD Global empowers insurance companies with high-impact technology solutions rooted in a 5-star customer experience. Our unrivaled team of in-house technical experts can solve your most complex digital challenges with state-of-the-art, custom insurtech software to power your digital transformation.
Only the digitally strong will survive and prosper. Schedule a discovery call to learn how RG Global can partner with you for success now and in the future.