Insurers should focus on following four pillars of change:
Enhance customer service to manage surges in demand.
- Issue proactive and automated customer communications to reassure and offer support
- Automate and redirect routine tasks and customer info requests to self-service
- Automate non-complex claims with STP processing
- Remove voluminous work from underwriting processes using cognitive computing, AI, and automation
- Enable digitally assisted advice and assessment, leveraging collaboration technology
Optimize operating models for early recovery.
- Optimize cost structures through right-sourcing and build resilience
- Productivity improvements through enhanced use of levers including AI/automation, process, and service redesign
- Transform engineering functions with a focus on velocity and quality
- Investment to save through the simplification and modernization of IT landscape
- Accelerate cloud adoption
- Build and acquire skills for digital enterprise
Go digital-first for customer engagement and experience.
- Elevate and re-imagine customer journeys
- Enhance direct-to-consumer engagement – quote to claims
- Go digital-first for self-serve channels and improve efficiency of person-to-person contact based on value
- Zero-touch transactions across policy servicing, claims decisioning, and settlement
- Agentless contact centers powered by technology ecosystem, enabling remote working of agents
Adopt new revenue streams to drive growth.
- Simplification of existing products
- Innovation in creating new product lines or coverages including
- Cyber Insurance with protection for remote working
- Usage-based cover
- Business interruption
- Employment protection
- Review strategy for back book to free up locked in capital and improve market share
Most insurers are likely to make small adjustments to their priorities and 2020 spend. According to a recent survey done by Novarica, less than 25% of insurers are delaying or cancelling strategic projects. Insurers are likely to spend more toward enhancing their digital capabilities, improving operational efficiency and business resilience.
At many insurance companies, there is an ongoing effort promoting digital transformation and innovation, but the industry as a whole needs to recalibrate and look at accelerating these efforts to serve their customer needs in the emerging new normal. We enable insurers with solutions across the four pillars of change to help them serve their customers with empathy and build future capabilities.