The digital future of insurance services - part 2: The importance of digital transformation

Digital transformation is no longer a nice-to-have, it is instead a necessity for insurance companies if they would like to stay competitive and appealing to new and existing customers. But it’s about more than simply surviving and staying relevant. It’s about making improvements to provide a better employee experience and working environment as well.

Taking the steps towards digital transformation has wide-ranging effects on the daily operations of a business. It can open doors to new customers and markets and can expand the reach of the business.

Cost structure

Traditionally, agents have taken on the role of consulting with a potential customer, determining their eligibility, and providing a breakdown of the pricing. A digital approach would help to automate this workflow, reducing the amount of time needed by the agent, as well as the customer’s end-to-end process.

Supply & demand

Digital solutions make it possible to better determine exactly what a customer needs. Instead of offering a bulk package that includes unnecessary elements, technology and better onboarding can make it easier to provide a customer with what they need and only what they need, without any extraneous material or coverage.

New markets

By going digital, companies open up new possibilities for not only reaching new markets, but also for being able to dynamically adjust to those markets to appeal to a target audience. Real-time data collection and analysis make it possible to cater to potential customers on a more individual level - an approach that many have come to expect.

Loyal customers

Increased customisation of offers and improved customer interface can only help but improve the overall experience of the customer. More efficient data management systems make it faster and easier for agents to retrieve data, also enhancing communication with the customer and contributing to more satisfied customers.

Fraud prevention

Powerhouses of insurance have incredible resources at their fingertips for accessing and analyzing data. However, fraud is still a major concern in the industry. A digital transformation would help in mitigating the risk associated with onboarding potentially politically exposed or sanctioned persons, more easily flag fraudulent claims, and more.

Simplifying compliance

Whether it’s PCI DSS, HIPAA or other regulations, insurance companies face the added complexity of dealing with maintaining compliance. Digitalization streamlines compliance by keeping detailed logs of automated processes.

With clear benefits of pursuing a digital transformation, as well as clear hindrances, how can insurance companies that are entrenched in traditional workflows make the move to harness their digital future?

Starting a digital transformation in insurance

Beginning the process of a digital transformation can seem intimidating, especially with slower legacy systems in place and highly-trained employees. But the time is now for companies to start considering what is necessary to move more into a digital space as far as internal operations and external offerings.

While many insurance companies already have a plan in place to pursue a digital transformation, the pandemic revealed just how important it is to move quickly and start the process as soon as possible.

Thankfully, there are solutions available today that make it easier for businesses to begin a digital transformation. Choosing the option with the right features can have an immediate and significant impact on not only customer and employee experience but also on a company’s bottom line.

Tools that offer:

  • A simple API integration can make it fast and easy to get set up as well as connect to existing customer relationship management systems.
  • PDF to online form conversion can rapidly speed up the time-consuming task of moving customer onboarding processes to a digital environment.
  • Sanctions and PEP lookup that is built-in to a workflow can prevent added work later on and help to manage risk when onboarding.
  • Verified electronic signatures mean that getting documents signed by the correct parties in a timely manner is faster and more secure than ever.

…are just a starting point that can make a big difference in the working life of employees and the satisfaction of customers.

Insurance companies looking to get started with the right tools to speed up workflows, reduce paperwork, quickly collect signatures, and stay compliant can implement solutions such as Taktikal. With an understanding of the end-to-end process, Taktikal offers a range of solutions aimed at making digital transformation a smoother process.

What is clear is that the insurance industry, like many industries today, is undergoing major changes. Advances in technology, changing customer and employee expectations, the covid-19 pandemic, a further hardening market and improvements in safety measures are all contributing factors. The only question that remains is which companies will tackle the transition effectively and come through transformed.