How the pandemic reshaped insurance digital investment priorities

Which digital investments are delivering high value for today's insurance businesses, and which are not?

This year’s unique insurance business environment also exposed gaps and elevated capabilities that were once perceived as less important or significant. (Shutterstock)

Disasters — such as pandemics — have a way of revealing the need for change. That’s why this year, insurance digital transformation advanced five years in about eight weeks.

Insurance businesses of all sizes have embraced digital sales and service, and, due to lockdowns, just about everyone has experienced the increased need for digital engagement with expectations only rising.

For P&C insurance, the pandemic brought digital strategies and investments into sharp focus and revealed, in real-time, which digital investments are delivering high value, and which are not. This year’s unique business environment also exposed gaps and elevated capabilities that were once perceived as less important or significant.

SMA’s latest market pulse research on the impact of COVID-19 has revealed that this pandemic reshaped and shifted digital investment priorities.

Three “must-have” investments have emerged as focus areas this year: Digital platforms, digital payments, and digital communications. Here’s a closer look:

  1. Digital platforms. It is essential to accelerate the digital enablement of sales and service capabilities for policyholders and agents/brokers with a modern platform and connections to core systems. These platforms enable new servicing, sales automation, and STP by leveraging the transformational technologies like AI, BOTS, IoT, and wearables.
  2. Digital payments. There is a renewed urgency to transform inbound and outbound payments by moving away from physical paper checks and payments and creating digital experiences and virtual digital payment capabilities. Digital payments are crucial to delivering a highly tailored customer experience as well as improved operational performance.
  3. Digital communications. Digital interaction and delivery for communications with prospects, agents, and policyholders are increasingly essential. This includes digital communication tools like chatbots, voice, and business texting, and the tools to capture, create, and manage forms, documents, correspondence, and messages to support interactions.

2021 may paint an entirely different picture. But for now, P&C insurer plans are full steam ahead with digital transformation investments.

So, what are your digital plans? How has your company reshaped your plans? Are these areas for investment? Your answers to these questions just might accelerate your journey.

Deb Smallwood (dsmallwood@strategymeetsaction.com) is founder & CEO of Strategy Meets Action (SMA), a strategic advisory firm for insurers, solution providers and InsurTech startups. This blog post published first on the SMA website and is reproduced here with permission. These opinions are the author’s own.

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