For organizations to achieve digital transformation, Novarica identified five critical components, ranked from least to most important:

No. 5: E-Signature adoption

The passage of the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000 gave electronic signatures the same legal standing as handwritten signatures, providing organizations with numerous business process advantages. Yet Novarica found that e-Signature strategies are not as important for small commercial carriers, since signed contracts are expected.

One CIO reported significant use of pen and paper at their organization. With a direct policy, credit card transactions were viewed as the digital signature. Even so, e-Signature software can aid carriers in expediting signing processes, cutting costs and reducing risk associated with lost documents and compliance.

No. 4: Online content collaboration

This is an important digitization component for agents and customers alike. Agents desire speed for quotes and issuances to secure sales, to expand customer portal capabilities enabling bill pay or endorsements that reduce servicing costs and to quickly become aware of customer activity to improve retention.

Meanwhile, customers want quick access to information from any device, the ability to self-initiate changes, file claims and receive advice from trusted advisors when needed. All of these “wish list” items make an online collaborative content management platform key to digital insurance initiatives. Carriers should think through the organizational impacts of using chat or other collaboration tools to implement them effectively.

No. 3: Working smarter

Workflow management software automates business processes, allowing efficient sharing of cases and information between workers. It matches work tasks with the appropriate employees, allowing employees at every level to work more efficiently as they spend more time on tasks best suited to their individual skills.

With an emphasis on workflow management, agents will not waste crucial time searching for documents or supporting material, allowing for faster responses, fewer lost opportunities and higher satisfaction. Novarica asserts that automation and information delivery to agents—in two clicks or less — is an important factor for insurers.

No. 2: Customized communications

Customers are used to receiving personalized offers and solutions fit to meet their specific needs. Content personalization has already emerged in personal lines. It is vital, then, for commercial carriers to catch-up by engaging consumers in providing value-added content.

In order to implement customized digital processes and personalized communication, insurers must invest in the technology platforms and analytics to expand their understanding of, and access to, customer data, preferences and interactions. With many growing tech opportunities and the opportunity for new innovative approaches, investment priorities and decisions will require refreshed criteria and education from CIOs.

No. 1: Optical character recognition software

OCR software tops the list as the chief component needed to achieve digital transformation. This is an essential tool for any organization burdened by manual data entry. Insurers can find immediate improvements in their processes, including reduced costs and improved service, simply by adding an advanced data capture solution.

In the small commercial insurance industry, OCR may reduce double keying, as well as improve workflow and straight-through processing. It enables business rules application and, eventually, AIs access to previously inaccessible data. According to the research, more CIOs will prioritize OCR capabilities, robotic process automation (RPA) and AI in the coming years.

Big picture planning

In addition to investing in these critical components, digital strategies need to incorporate organizational implications, including a consideration of roles, needed skill sets, structural changes, changes in hiring practices and successful change management.

Many small commercial insurance carriers are already making organizational changes to drive digital process development as part of technology modernization and digital transformation visions. According to Novarica, one carrier transformed its CIO into a chief digital officer to help drive digital experience transformation, while another is leveraging its CISO to drive digitalization by easing cybersecurity fears.

The importance of seamless digital processes continues to increase. Small commercial insurers need to cultivate an organization that thinks digitally, invests more in emerging IT and re-imagines technical and data architectures to deliver enhanced digital capabilities.

To be successful, carriers should establish digital road maps to prioritize investments and boost progress. If implemented correctly, digitization will lead to quick paybacks for insurers and both top-line and bottom-line growth.

Charlie Hanna is domestic director of insurance solutions at Hyland. He can be reached by sending email to Charles.Hanna@hyland.com.

See also:

Digital transformation: 8 best practices for insurers

Managing today's claims while planning for tomorrow's technology