What trends can expect to be seen in a post-pandemic insurance industry? Find out what to expect and how to address these trends using intelligent automation.
It is now well-documented that the pandemic has accelerated organisational adoption of digital tools, tactics and techniques more rapidly than anyone could have forecast; 67 percent of organisations globally say they’ve accelerated their digital transformation strategy as a result of Covid (1). The insurance industry moved even more quickly, with 85 percent of insurance CEOs saying that the pandemic has accelerated the digitalisation of their operations and the creation of next-generation operating models: “COVID-19 has been the digital catalyst insurers so dearly needed.”(2)
Although insurers responded to the areas of most urgent need, such as digitalising call centres and steps to address the claims process, fundamental flaws remain. As Deloitte report, “Many processes remain overly manual… are also not well integrated, [and] deficiencies lead to slower turnaround times, increased volume of errors and increasing backlogs of work that cannot easily be cleared.” Overall, they summarise, the “Legacy nature of much IT infrastructure can hinder agile responses to the crisis.”(3)
What More Can be Done?
Looking ahead, we believe that the insurance industry’s future focus should be summarised in one word: connection. Connected insurance is a phrase that is used increasingly often these days, seemingly meaning different things to different people. Jeffrey Williams of Forrester sums it up nicely: “Connected insurance provides a means for digitalising how your customers engage with you. It can also help you drive higher revenues, lower costs, and improve conversion. As insurers look for opportunities to innovate, connected insurance promises bespoke solutions that digitize customers’ buying journeys, from purchase decisions to claims initiation. Furthermore, connected insurance can automate workflows like underwriting and claims handling.”(4)
KPMG identify eight key capabilities that a ‘connected enterprise’ must possess: responsive operations and supply chain, seamless interactions and commerce, experience centricity by design, digitally enabled technology architecture, aligned and empowered workforce, insight-driven strategies and actions, innovative products and services, and an integrated partner and alliance ecosystem (5).
Intelligent automation (IA) can play an important role in each of these capabilities. Below we highlight the top three areas that we believe are most important for the connected insurer.
Queensland’s Crime and Corruption Commission (CCC) is an independent statutory body established to reduce the incidence of major crime and public sector corruption in Queensland, and to provide the state’s witness protection service. The CCC investigates both crime and corruption, has oversight of police and the public sector and protects witnesses. The CCC is run by a small, dedicated staff of approximately 50 people and is the only integrity agency in Australia with this range of functions.
While the pandemic has proved that the insurance industry can move quickly to respond to change, many challenges remain. Becoming a connected enterprise is critical, and IA can play an essential role in maintaining momentum and meeting new demands. Back to Jeffrey Williams of Forrester: “The velocity of change in insurance will only increase. Insurers must create new products and services that improve customer and agent experiences, increase operating efficiency, reduce costs, and drive business growth. Connected insurance offers a way to meet these goals.”(8)
Please visit our insurance information hub for a more in-depth discussion of insurance industry trends and how to address them with intelligent automation.
3) Deloitte, ‘Impact of COVID 19 on the Insurance Sector’, 2020
5) KPMG International, ‘Going digital, faster-Global survey into the impact of COVID-19 on digital transformation’, 2021
7) EY, ‘Claims in a digital era: data, analytics and AI transform the customer experience’, 2017