Urgent: Digital transformation is driving growth for other insurers

So, what are you doing about it?

These days, the battle for hearts, minds and renewals is all about data and the hyper-connected digital shift. Aggregating, managing and using the unremitting avalanche of data more efficiently than your neighbor is the key to success in an intensely competitive insurance marketplace.

Data is the real differentiator, and effective data management separates industry leaders from the rest of the field.

 

Understanding data value

 

In volatile markets, data is currency. Every terabyte, gigabyte and petabyte of data has a fiscal value, whether guiding and energizing risk assessments, premium computation or unmasking fraud. It’s about more than the cost of storage. True data value is in the flow of insights that analytics can provide. Data analytics discerns the patterns that boost forecasting accuracy, cost savings and revenue generation to help build better business outcomes.

Zoreza Global’s flexible and scalable data management solutions aggregate data from increasingly diverse origins into a coordinated and treasured resource, a digital thread interlacing all parts of the business. Digital transformation simplifies access to essential information, revealing insights previously buried in silos and improving decision-making, profitability and your competitive edge. It also ensures that newly acquired knowledge from product development, services and acquisitions is effortlessly integrated without breaking business continuity.

 

Be compliant, be secure

 

We appreciate that regulatory compliance is not just a tick-box exercise, and the repercussions of non-compliance can be horrendous. Accordingly, our advanced data management techniques turn basic numbers into workable insights. Our domain experts guarantee that data flows smoothly from team to team, enhancing collaboration, maximizing productivity and limiting exposure to severe financial penalties or potential damage to corporate/social reputations.

The point is that effective data aggregation, management and enablement are not just operational obligations. They’re essential drivers for the enterprise’s strategic health, growth and profitability.

 

Gauge the digital impact

 

In reshaping the financial landscape, digital transformation delivers both opportunities and challenges for insurers.

Opportunities

• Operational efficiency: Automated underwriting, claims processing and comprehensive self-service access eradicate manual errors and save costs. Technologies like artificial intelligence (AI), machine learning (ML) and robotic process automation (RPA) provide real-time insights for a greater understanding of risk and more accurate premium calculations
• New markets: Digital products, personalized policies, on-demand access and real-time support meet changing customer preferences
• Customer-centricity: Mobile apps and digital portals give consumers control through convenient and transparent transactions. These benefits rely on designing an ultra-clear, user-friendly interface and exceptional user experience
• Data-powered decisions: The rich vein of real-time data produced by the rapidly increasing number of IoT devices and telematics represents a new business bonanza. We can predict risks more keenly, deliver usage-based insurance and engage policyholders directly to reduce risk
• More diverse strategies: Modernization moves beyond the traditional one-size-fits-all insurance policy. Micro, on-demand and peer-to-peer insurance models attract and inspire more digital-savvy customers
• Fresh culture: Virtual, agile working and a flatter organizational model require fresh cultural thinking. Employees need to understand the benefits and implications of greater agility, innovation and continuous learning. And the embedding of a clear digital vision must be accompanied by inspirational upskilling programs to help accelerate change management
• Exceptional CX: A personalized customer experience will go a long way to increasing upsell and reducing churn

Challenges

• Major early investment: Transforming legacy systems, upskilling the workforce and implementing new technologies don’t come cheap
• Customer expectations: Modern customers want smooth, coherent and consistent digital-first engagement. So, focus on your touchpoints and develop mobile-friendly claims processing, policy renewals and general interactions
• Cybersecurity: More complex platforms increase potential vulnerability and the threat of cyberattacks. Therefore, you must establish coordinated and rigorous cyber-risk management procedures to mitigate any consequential financial loss
• The cost of compliance: Navigating fresh digital territories and regulatory environments might mean the cost of remaining compliant could rise significantly
• Insurtech startups: Lithe and disruptive, insurtechs defy accepted insurance processes. Meeting the challenge requires added flexibility and a commitment to continuous learning

As you can see, digital transformation is more than a technical readjustment, it’s a companywide cultural shift driven by enterprise leaders and decision-makers.

 

Migrating from heritage technology

 

Operational alignment, cost control and risk mitigation are the scaffolding for heritage technology modernization. Insurers must ensure a flawless conversion to counteract increasing competition, fluctuating customer opinions and ever-increasing regulatory demands.

Operational alignment

• Gap analysis: Analyze what’s working, what isn't and any systemic obsolescence in the existing architecture. This exercise highlights the roster of new technology capabilities needed and those to be discontinued
• Integrated workflow: The new slick system must accelerate operations, integrating third-party software, delivering real-time data processing and offering user-friendly interfaces
• Training: There’s no use in modernizing the technology if you don’t bring those expected to use it with you. Flatten the learning curve with holistic training programs that ensure employees use the new tools most productively

Cost control

• Phased deployment: Taking transformation step-by-step will keep disruption to a minimum. Phased implementation ensures business continuity doesn’t suffer in any way
• Contingencies: Be prepared for unforeseen problems by establishing a contingency budget to cover costs — be they things like unexpected software licenses or protracted downtime
• ROI prioritization: Focus on migrational tasks that promise the greatest returns, ensuring budget reconciliation and value for money

Risk mitigation

• Data integrity: Maintaining the accuracy and security of data is crucial during transformational phases. This can be achieved by establishing powerful encryption, secure transfer protocols and regular audits
• Parallel run: Running heritage systems in tandem with new versions can be a costly process, but at least it allows you to make sure all essential data has been migrated and your modern system is reliable and functioning as expected
• Vendor engagement: Consult domain specialists whose invaluable expertise can give you an idea of the necessary best practices and potential pitfalls of sunsetting technology
• Change management: Resistance to the change from familiar systems is to be expected. Develop a strategy that involves employees in the change process, addresses their concerns and promotes the benefits of modernization

Decommissioning heritage technology is as much about letting go of the old and familiar as embracing the new. Insurance leaders must drive the transition, owning the innovation while conducting the granular planning and due diligence that a monumental change of gears like this deserves.

 

Want to hear more?

 

If you’d like to learn how Zoreza Global’s approach to digital transformation can help your organization win the battle for new business and renewals, contact us.

 

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