DIGITAL TRANSFORMATION
TION
Insurtechs are spearheading a digital revolution . We look at what insurers must consider when choosing to transform their legacy systems
WRITTEN BY : LOUIS THOMPSETT
Insurance is in the midst of a digital revolution . While some legacy players have been slow on the uptake of digitalisation , this hasn ’ t stopped new digital insurance offerings from spreading throughout the market , taking sizeable shares in the regions they operate .
Whether a provider or an operator , insurtechs have risen to take the mantle of revolutionising insurance and take it into the digital age . It has been well-documented , much like in the financial industry , that the onus is on legacy players to catch up .
For Dan Cicchetti , UK & Ireland Senior Director of Insurance Client Engagement at LexisNexis Risk Solutions , the key to continued digitalisation in the sector comes down to automation , now “ a firm feature of the insurance sector and a pre-requisite of the market ’ s ongoing digital transformation ”.
He adds : “ Most insurance customers want simplicity , transparency , and speed – from quote to claim . To achieve this , insurance providers are using automated processes at an increased rate , offering faster results with a greater degree of accuracy , without losing the human touch when it ’ s needed , whether it ’ s proving No Claims Discount ( NCD ) entitlement or verifying an email address has no links to fraud .”
Leveraging automation would not be possible without access to significant pools of data , or an “ avalanche of data ” as put by Truong Hoang Phuc , Deputy Director of Financial Services Group , FPT Software , which “ is being exploited by insurtechs to improve insurers ’ operational efficiences ”.
He adds : “ The business of insurance has always leveraged personal relationships but there has been a seismic shift in the way companies now interact with their policyholders or potential customers ; with a greater focus on digital interactions .
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