I've seen several articles recently which I feel have somewhat misleading headlines.
For example: "Will insurance claims go digital in 2019?" or "6 reasons digital transformation is the future of insurance", or even "How insurers can keep customers happy when moving online".
At the risk of being controversial I would comment as follows:
Insurance claims already are digital however, true end to end digital capabilities are either not being sought or not being effectively implemented. The big question for me is - "if not, why not?" This brings us to the accepted norm that insurance as an industry is slow to adopt and slow to adapt. For an industry where a core competence is risk management, adopting new technology and then adapting to a new normal should be manageable within an acceptable degree of risk.
6 reasons digital transformation is the future of insurance needs to be amended slightly to 2 reasons why digital transformation is the future for current market players. There have been several new entrants who by dint of their newness don't have to handle the excess baggage that legacy carriers continue to carry.
I would suggest that there are only two reasons digital transformation is the future of insurance with and those two reasons have only one consequence.
- Customer satisfaction as a result of a much-anticipated digital experience, and
Despite the all-time high in satisfaction levels (according to J D Power) insurance still lags the experience of leading online retail - there is still a way to go.
Current cost structures are simply not sustainable IF a perception of value for money is to be maintained. Challenger brands are already eating away at market share of the larger players - that's small right now but will accelerate.
Lastly, How insurers can keep customers happy when moving online.
This must be based on an "easy to deal with" model, that extends end to end - underwriting through to claim settlement. That needs to be accompanied by great communication delivered in the most convenient manner - generally a mobile device. From the carrier side, ensure that expert resource is being fully utilized as an expert.
Fortune will favor the brave; those who are not deterred by words like "disruption" and “transformation”, and who can develop or use existing capabilities to deliver a step change in performance.
360Globalnet has great data from over 3.5 million digital transactions, many of which fall into the category of closed claims. We are experts in digital, and transformation, with our award-winning technology already helping national and global carriers of all shapes and sizes to rewrite the future of insurance.