The Essential Components of Your Insurance Company’s Digital Insurtech Solution
Choose the right tools to gain a competitive edge now and in the future
- Insurance CEOs, CTOs, and CIOs are realizing the value of digital insurtech solutions
- Leaders must reimagine their business to embrace and use technology to its full potential
- The centerpiece of that is the insurtech platform that enables digital transformation in the back office as well as for agents and customers.
- The most important insurtech platform components include:
-> Intelligent automation
-> An optimized and unified user experience
-> The ability to analyze, manage and visualize data
Insurance industry leaders tell us they hear a lot about digital transformation. The industry, like so many others, has reached a critical turning point that opens the door for both opportunity and challenges. CEOs, CIOs, and CTOs have come to understand that implementing an insurtech solution is vital to maintaining a competitive edge.
These platforms provide tools that simplify, automate, and optimize many of the tedious tasks that happen behind the scenes, providing predictive analytics, performance reporting, and intelligent automation using Artificial Intelligence (AI) and Robotic Process Automation (RPA).
Insurance companies that have implemented insurtech platforms are disrupting the industry and reaping the benefits of happier customers, lower costs, and increased growth. However, with all the available capabilities, your technology strategy needs to be clear on which capabilities to build into the platform. Just what do you need in your insurtech solution? Read on.
The pandemic provided not a nudge but a shove toward insurtech solutions. Cumbersome and expensive legacy systems proved less than reliable. The C-suite was forced to re-examine technology company-wide and rethink operational models.
Unifying business and technology objectives to create new value models that serve both business growth and customer satisfaction has become the paramount focus of industry-leading enterprises. This is at the heart of digital transformation. The technology choices made today will have implications far into the future. In that context, insurance leaders must find the best options for today while building the tech stack for future growth.
Your insurtech solution should offer benefits that help achieve that, such as:
- Policy management, which can reduce administrative time by up to 30%
- Reduced underwriting time through better data management
- Accurate risk assessments through hyper-automation
- Claims registration and processing via automated workflows
- An optimized billing system utilizing AI and Big Data
Insurtech software enables your insurance company to exploit AI and RPA to improve efficiency and the user experience for customers, agents, and your staff. These allow the creation of ultra-customized policies and social insurance. New data streams offer the ability to dynamically determine premium prices based on observed behavior.
The insurance industry is primed for the innovation and disruption that can only come from choosing the right building blocks for your technology solutions: intelligent automation, an optimized experience, and data analysis tools. To be truly effective in transforming your operation, your platform should include:
With intelligent automation, you can expect outcomes that include a vast reduction in duplicate effort, elimination of redundant manual processes, and technical process debt. It also offers the benefits of better decision-making as well as higher employee and customer retention.
Intelligent automation leverages cutting-edge technology including RPA, AI, and event-driven automation.
The data that drives your organization is quickly and efficiently processed. With strategic integration of big data analytics and AI solutions, underwriting accuracy is improved. Automation also provides enhanced customer experiences and dramatically boosts efficiency. In fact, McKinsey has reported that 43% of the time spent processing data can be saved through automation.
By combining automation with redesigned operational processes, companies can lower operational costs by 30% by 2024, predicts Gartner. For example, RPA, a basic component of hyper-automation, emulates repetitive operational, transactional, and administrative tasks. It also removes the need for human intervention and lets your staff concentrate on work that provides enhanced value.
In addition, automation can assure that your operations are in regulatory compliance.
Another goal of your insurtech solution should be to provide a seamless experience for all stakeholders on every device and in every channel. Siloed data is a huge obstacle. Data sharing allows online content collaboration, which means faster quotes that bring in sales, enhanced customer service that reduces friction, and the ability to track customer activity to find opportunities and improve retention.
Shared data also enables employees to access the information they need quickly and easily, and it provides a single source of truth for everyone company-wide. Barriers between business units are broken down, helping to create and perpetuate a unified vision with insight into the big picture.
Big data is complex, and traditional data processing software just can’t handle it. To capitalize on the business intelligence it holds, you need real-time analytics. Insurance companies can no longer rely on outdated tools and strategies for data management.
Corporate performance gets a big boost from customer analytics. Per McKinsey, insurance firms that are intensive users of data analytics are 23-times more likely to acquire customers, see six-times better retention, and are 19-times more likely to be profitable.
Turning data into actionable insights requires unification of disparate information, something that is impossible to do manually. Comprehensive data analysis requires robust insurtech software that can mine every last useful data point. Smart “event stream” processing easily gathers data from every part of your ecosystem.
Event stream processing handles a data set one data point at a time. Instead of seeing data as a whole set, event stream processing deals with a stream of continuously created data. Use cases include predictive analysis, fraud detection, and event stream processing, which is especially valuable when data granularity is essential.
Data visualization is an important tool for not only understanding data, but in revealing the real story contained within it. Information is accessed in a way that’s easily understandable by everyone across the organization.
To keep a competitive edge and meet customer expectations, insurance industry leaders must look to adopt new technologies that hold the potential to increase revenue, improve internal operations, and enhance the customer experience.
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 solutions that will power your digital transformation.
Only the digitally strong insurance companies will survive and prosper. Schedule a discovery call to learn how RD Global can partner with you for success now and in the future