Insurance C-Suite Take on Results Driven Technology: Invest to Stay Ahead
It is well understood that necessity is the mother of invention. Now the insurance industry can proudly say that in the face of COVID-19, necessity also became the mother of innovation.
Kudos to the Insurance Industry
From repositioning hundreds of thousands of employees from offices to a fully effective remote Work-from-Home format in less than a month to quickly implementing technologies enabling them to continue to offer products, services and support, barely missing a beat, the industry impressively rose to the challenge.
These accomplishments did not just happen. It took strong, decisive leadership, starting in the C-suites of the industry and focused, well-articulated action plans that flowed down into middle management and out to the front lines. It also took increased investment, some of which was unexpected and unbudgeted. Marshalling the capital required a compelling justification and in business there is no more convincing target than results and outcomes which are measured by a variety of metrics beyond just financial results, including customer experience and satisfaction, retention, market share growth, reputation management, credibility and competitive strength.
More Work to Do
But this transformation is far from over and will no doubt continue long after the pandemic recedes. There is a sense of urgency not evident prior to March 2020. The impact of events over the past few months have focused C-suite leaders to realize that their digital transformation efforts need to be expanded and accelerated to light speed. It is now broadly accepted that a comprehensive digital strategy and implementation plan is critical to carriers who are serious about transitioning into digital insurers.
Immediate, Enterprise-Wide Digitization Now Job #1
Unfortunately, not all carriers will succeed in this journey. The survivors will be innovative, nimble, and fiercely customer centric. They will be committed to enterprise wide conversion to digitalization. Investments in mission critical technology will need to be prioritized. Speed to market will be mandatory. The hallmarks of successful carriers will include leveraging high powered transformational technologies including IoT, telematics, sensors and more. These same market leaders will learn to find, identify and engage with traditionally unreachable customers and convert them into their brand ambassadors. And they will adopt digital technology as a strategic priority and achieve automation efficiency by arming their companies with the very latest in client communications, finance processes, digital and touchless claims processes and digital marketing
According to Reuters Events’ Connected Insurance 2020 Report, in 2019, 63.4% of insurance carriers rated the development of new digital products and services as a key expected outcome over the next 12 months. In a post-pandemic world, it is likely that figure will be nearer 100%. We need to take every opportunity to listen and learn from our industry leaders who understand what it takes to survive this challenging period and emerge even stronger.
This theme will be explored in depth at The Future of Insurance USA 2020 which takes place online November 16–18. Welcoming over 2,000+ senior insurance executives, this is Reuters Events’ flagship insurance conference and the world’s largest gathering for insurance executives striving to achieve innovation by leveraging cutting-edge technologies. More information can be found on the website at The Future of Insurance USA 2020.
Stephen Applebaum, managing partner, Insurance Solutions Group, is a subject matter expert and thought leader providing consulting, advisory, research and strategic M&A services to participants across the entire North American property/casualty insurance ecosystem.
Get the good stuff
Get regular hits of insurance inspiration delivered to your inbox.