For the last few years, I have had the pleasure of attending what I consider the premier Australian insurance event: FST’s Future of Insurance conference. I expect that this year (March 6th at the Westin Hotel in Sydney) will bring an extraordinary session, as insurance and technology have truly reached a new level – providing opportunities for insurers and their clients alike to realize more significant benefits from the digital transformation sweeping the P&C insurance industry.
However, it is important to remember that making the most of the insurance technology revolution requires all insurers – small and large, new and established – to employ thinking, processes, and solutions designed for change. This agility leads to revolutionary speed:
·New policy prices implemented in production within hours
·New rating factors implemented in production within days
·New products launched in production within weeks
·New core systems implemented, from start to go-live, within months
·New ways of interacting with customers created, and relevant products offered through these channels in real time
It has never been more important for insurance companies to employ change-oriented mindsets and methodologies in planning for their digital-first futures. Individual consumers and corporate buyers now demand a more intuitive way of interacting with insurers, similar to the ways in which they communicate with companies in other industries, such as travel sites, Amazon, and fashion retailers.
Customers also increasingly expect tailored solutions for their insurance needs (sometimes referred to as the “insure me” concept), and the majority of them expect that their insurers have relevant information and related solutions to offer, even before they realize what coverage they need. Many companies try to simplify their operations to be agile and efficient; however, all too often, we see insurance carriers doing so by minimizing options for their clients (for example, only offering generic, standardized products), which goes completely against modern customers’ expectations of personalized service.
Together, the right componentized thinking and fit-for-purpose solutions allow maximum flexibility and minimal effort. An innovative, open, easily-configurable solution ensures sophisticated, easy-to-maintain product and pricing, and improves carriers’ speed and efficiency without compromise. Coupled with truly open platform architectures and carriers’ ability to design unique user experiences on top of their core systems, these concepts will drive every successful carrier from here forward, no matter what changes the future brings.