DIGITAL TRANSFORMATION
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If you ask Cognizant ’ s Head of Insurance Consulting , Tim Queen , the rate of transformation may be far slower than widely perceived , citing a report suggesting “ only 50 % of insurers think that adopting new technology would have a major positive impact on generating or retaining new business ”.
He continues : “ Much of the time , this is the result of larger insurers and incumbents relying on poorly designed apps or websites from digital retailers to interact with their new customers , which are not able to fully capture the wealth of data that can be generated in a transaction or product search .”
The solution is simple for Queen : “ Insurers need to build an API layer that can seamlessly integrate their systems with those used by retailers . By doing so , insurers can create more value both for themselves and for their clients . Having a more granular understanding of their customers would allow insurers to personalise individual experiences .”
And for those legacy players that have accepted the need for a digital shift , building API layers and integrating other innovations including automation , Queen cites a 67 % approval rate from senior executives who claim adopting technology has led to a significantly positive impact on customer experiences .
Despite this , Queen says less than a third of insurers are using data to guide decision-making processes . “ Executives need to develop a comprehensive strategy to maximise their companies ’ use of the abundant valuable data available to them .
“ By doing this , they will be able to uncover more insights , improve customer journeys and develop a system in which teams can share important information seamlessly between themselves .”
What is holding insurers back ? One thing that may be holding insurers back from digitalisation is a fear that too much automation could detract from personal
98 September 2023