The insurance industry is undergoing rapid digital transformation fueled by the average consumer’s desire/willingness to engage online. In a study released by EY Global, 80% of customers said they were willing to use digital and remote channel options for different tasks and transactions.
Digitization has the potential to dramatically increase customer engagement at a lower price point – both perennial challenges for the industry. It also has the potential to improve the underwriting process, leading to a better overall customer experience. Nevertheless, digital transformation requires more than simply applying technologies to current processes.
Reviewing current processes is the first step before embarking on a digital transformation
There is a proper sequence of events that needs to happen before digital transformation can be effective. One of the most important steps is to review current processes.
In their eagerness to see a payback from their digital transformation initiatives, too many organizations don’t take the time to review their current processes prior to applying the latest technologies. This leads to processes that are ineffective, inefficient, and error-prone. It also leads to millions of dollars down the drain every year as digital transformation efforts fail to bear fruit.
While many insurers are rightly focused on automating their workflow to improve efficiency, they also should ensure that they have the right processes in place and an adequate talent pool to get the job done. Plus having a fundamental understanding of current processes will help you identify where technology can enable improvements.
The importance of reviewing underwriting and claims processes
I recently sat down with my colleague Don Russell, President of SALT Associates, a claims management solution provider recently acquired by RGAX, to discuss the importance of reviewing underwriting and claims processes regularly, and in order to prepare for future digital transformation.
Read the full interview here: 3 Ways to Transform Your Underwriting and Claims Processes