AIR+17 Mar 2022

Top trends for digital acceleration in insurance

| 17 Mar 2022

According to tech consultant Endava's insurance trends report, there are two developments which stand out for digital adoption. The first is how insurance companies are focusing more on developing a smoother customer experience and the second is building capabilities to be part of a larger ecosystem for various industries that insurers serve.

“Building an end-to-end solution does not solely mean revamping user interfaces but also involves overhauling digital systems to optimise throughput and reduce repetition of information. But the process does not end there. For companies to accelerate this further, technology systems need to be structurally sound yet adaptable towards ever-changing business needs,” said Endava global head of insurance delivery Kevin Crawford.

“Premiums should no longer be something that audiences take a long time to mull over but rather, with the use of data, insights generated should make insurance terms as digestible as possible. This grants customers the power to make informed choices in a quick and easy manner, allowing them to compare various insurance premiums in a streamlined manner,” he said.

According to Mr Crawford, a market speciality insurer improved underwriting efficiency by 25%. This was done through auto-declining submissions for certain lines of business. The time saved on manual processing allowed underwriters to focus on analysing valuable data around risks and increased broker satisfaction.

A problem another insurer faced was the long time taken for claim notification forms to be created. By implementing a new process that transposed its first notification of loss data from a PDF to its core database, this time was reduced from 14 minutes to 70 seconds.

Transformation challenges

Endava’s report said many insurance companies are undertaking multi-year digital transformation programmes. However, the report said some insurers were poor at delivering large-scale projects. They underestimated how long these programmes would take and how much they were going to cost. To compound the issue, they did not have a strong structure in place for good programme management and thus, these transformation programmes were never finished.

Insurers are also changing their mindset from transformation to evolution when it comes to digitalisation.

“The aspect of the customer experience that is often missed is the cultural aspect which means insurers need to have staff understanding how a customer uses technology. They need to employ people with fully-fledged digital skillsets to help with understanding customers.

Personalised insurance

The report said that insurance is also becoming more personal. “This will require the implementation of things like personalisation engines and predictive analytics to enable this. It also requires the smart usage of telematics and sensor technology. Contributory databases and data enrichment at the point-of-quote have already transformed the personal lines market, helping to deliver more accurate and personalised quotes at speed in an online environment,” the report said.

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