The traditional insurance business model has faced a number of changes of the past few years. The single biggest change impacting how insurance companies operate in recent years and well into the future is ‘Digital Services’. Insurance companies have been very slow to digitally transform compared to other sectors. However, it is now widely accepted that for an insurance company to survive in the competitive digital age, they must quickly embrace this change.
Digital services are also transforming how customers interact with their insurance company and vice versa. They also represent a genuine opportunity to remain competitive and continue to grow by replacing disparate legacy technology platforms and systems, in an industry under increased regulatory pressure and we see more firms looking at shaping a digital strategy to future proof their business.
For insurance companies that embrace a full end-to-end digital strategy, the rewards are immense. A digital platform allows insurance companies to introduce new pricing models through the introduction of technology such as telematics in vehicles. However, it is the emergence of the ‘Internet of things’ (including connected vehicles, homes and other devices to name a few) that will only continue to shape the future of the insurance sector as more people look for personalised policies that reflect their lifestyle and habits via their digital footprint.
Whilst insurance companies still commonly use manual processes extensively across their organisation, customers regularly wait several days or even weeks for adopting a new policy or making a claim on a policy. Digitisation and the technology available today, allows insurance firms to streamline their processes, eliminate manual time consuming date entry tasks, reduce errors and accelerate turnaround time of customers requests.
To ensure Insurance companies can successfully implement digital change they will need to ensure that they have first developed a robust enterprise-wide digital strategy. This strategy would need to take into account the practicalities the existing business model and IT infrastructure meets the business needs and future strategy. Jalubro have the expertise to help prepare insurance companies for this change. To find out more get in touch with us.