Accelerating the Digital Transformation
The insurance industry has been on a significant, if comparatively slower journey towards digital transformation. As with many other sectors, the sudden impact of CV-19 has forced the acceleration of this transition. The insurance industry had already been adopting many of the hallmarks of digital transformation — increasing the digitization of content and processes and reducing the documentation trail for insurers, producers, brokers and others across the insurance ecosystem, for example — though many in the industry would agree that with the onset of CV-19 the industry has had to fast-forward its progress.
The ramifications of CV-19 for the insurance industry will ignite the adoption of many components of this digital transformation, most immediately in delivering customer service to insureds, the role that insureds play in their claims processes and an increased emphasis on cybersecurity.
Speeding up the conceptual transition to digital
The CV-19 pandemic has revealed which organisations have a sufficient level of digital prowess and which need to hasten their digital transformation. The first step towards digital transformation is an awareness of the current state of the industry. For the insurance sector, this applies principally to sales and service areas. Insurers will need to assess the sophistication of their internal operations and the readiness of their employees to transition to digital. This is a non-trivial shift. Action plans that previously may have been on timelines of 3-5 years are now on the order of 2-3 months.
The industry must also prepare for a rapid adoption of digital documentation. Insurance has traditionally been a document-heavy sector, with multiple signatures, statements, addenda to documents, policy explanations, etc. requiring heavy in-person administration and even printed paper forms. The production, mailing and return reception of written correspondence will also need digitization, or at minimum improved automation.
Customer service transformation
As is the case in many industries now as a result of CV-19, more customer service touchpoints will migrate online, significantly impacting broker relationships with clients. Brokers must replicate the personal touch that they’ve developed with their clients in a digital environment. It’s key that brokers continue to be available for communication, providing the right advice and understanding individual situations.
Digital transformation for insurance signifies a redesign of:
- self-service portals both for policyholders and agents
- user-friendly websites and apps
- improved call-center capabilities to manage the deluge of concerns and questions which will continue to crest for the industry, at least in the medium-term
Increased customer involvement in the insurance process
Actions insurers have historically initiated will now shift to have a first point of action on the customer side. Customers will increasingly file claims using photographs they’ve taken themselves, supplanting much of the fieldwork of adjustors. Carriers may also request that customers produce a video to serve as a virtual inspection of a home.
This increased data input will require augmented adoption of technologies to manage both the quality of the data and to process its output. Insurers will adopt increasingly sophisticated AI platforms, that can produce rapid, detailed assessments to augment human decisions on the carrier side.
Consequent risk of increased cyber crime
With the transition to digital will come a substantially increased risk for cyber crimes, with two specific channels that insurers must prepare for.
The first is an increased need for digital security for both internal organizational data and also for the personal data of consumers. Both types of internal data will see additional exposure as a result of the implementation of digital processes.
The second channel will be an increased need for the creation and deployment of insurance products to manage that cybersecurity risk — in a sense for the insurance sector to safeguard its own industry.
How DRC can help
DRC’s digital-first products can support carriers with their digital transformation. For nearly half a century, DRC has provided powerful and trusted software solutions to the Property & Casualty (P&C) insurance industry. Large carriers, small start-ups and MGAs alike in the United States and globally deploy DRC’s SaaS and onsite solutions. Our leading RS X Rating Platform allows business users who price risks and model products to create a version-controlled, web service process throughout the entire insurance ecosystem with minimal need for any programming resource. All DRC clients receive market-leading solutions, expert implementation and our commitment to deliver to their complete satisfaction.
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