Digital trends are evolving in P&C insurance
Rapid technology adoption, new business models and the demand for simple digital experiences are accelerating change in insurance.
The insurance industry is experiencing an exciting transformation.
Technology adoption is at an all-time high with a focus on digital connectivity. In fact, 66% of insurance executives report that the pace of digital transformation for their organization is accelerating, according to Accenture, and 81% of insurance businesses and IT executives worldwide acknowledge that technology has become an inextricable part of the human experience.
As the industry continues to evolve towards digital, these four forces are influencing the technology-adoption journey:
- Data obsession;
- Consolidation;
- Remote work; and
- Changing consumer expectations.
These forces require agents to evolve by taking on technology and tapping into the digital ecosystem to compete and succeed in the market. Here’s a look at these trends, which are shaping the insurance industry, and how they will continue accelerating change.
Rapid tech changes spur data obsession
The insurance industry is swimming in data. Due to the industry’s increased momentum in technology adoption, which helps to deliver practical insights with this data, the demand for more intelligence is higher than ever. Having the right tool can provide more intelligent insights into your organization, boost employee productivity, and enable you to stay competitive and better serve clients.
The answer to transforming your access to data is utilizing Data Lake technology. Data Lakes allow agencies to flexibly store many different types of structured or unstructured data without the expense of designing complex data warehouse platforms. Because it is an ‘open’ technology, agents can connect it with other databases within the business and generate dashboards on any platform.
Data Lake technology unlocks the powerful potential of data to help agencies uncover business-health insights within existing systems — including operations, how to better work with insurers, and how the business measures against the market. By becoming a data-powered business and having a digitally connected system, agencies stand to gain a competitive edge through enhanced decision-making, insight discovery and process optimization.
New demands
Agencies are evaluating market opportunities that can safeguard their future enterprise value, spurring a trend that does not seem to be slowing down anytime soon: Consolidation. So much so that 673 U.S. P&C mergers and acquisitions were announced in 2020, and 3,962 new agencies were established in 2021, according to PwC.
In order for your business to stay competitive, whether you’re a large agency looking to acquire companies, an agency that wants to be acquired, or you’re wanting to break off and start your own independent shop, open browser-native technology is the key for success. Browser-native technology provides an industry-standard approach to software development, speeding up access to the application and reducing software management overhead. It offers a single access point for multiple systems, which makes it easier for agents to access data and enables simpler workflows and automation that makes your employees’ jobs easier. Browser-native technology also helps agencies become more adaptable and flexible when it comes to the ever-accelerating consolidation trend and evolving business models to meet the new demands of the industry.
Business models are changing
Due to the pandemic, many industries had to incorporate remote working opportunities to better reach customers and distribute products. In a recent McKinsey Global Institute analysis, after analyzing more than 800 occupations and 2000 activities, the study determined that insurance professionals offer the most potential for working remotely.
Although insurance has predominately focused on face-to-face interactions with their clients, having the flexibility to work remotely allows agents to connect with their clients from anywhere at any time. To enhance your remote work environment, implementing a cloud-based platform can build out your digital capabilities and ensure connectivity.
A cloud-based platform provides a flexible operating environment with scalability for business growth, stronger business continuity protection, collaboration without barriers and increased mobile access to business information. By incorporating a cloud-based system, your agency can have standardized operations that give a complete view of your business for each person in the agency to access and act upon — thus saving time and enhancing productivity.
Simple digital experiences
As the world continues to become more digital, consumer expectations of service are changing. Due to tech giants like Google, Amazon and Apple, the demand for intuitive and easy-to-use, digital experiences has set the standard for all industries.
Traditional brick-and-mortar agencies need to offer a digital experience through omnichannel, mobile-first interactions that provide seamless customer service. In fact, 70% of consumers expect an omnichannel experience for policy research and purchase, according to the 2021 World Insurance Report produced by Capgemini and Efma.
As consumer expectations continue to trend towards digital and instant ease of access, embracing omnichannel technology will future proof your business. Incorporating an omnichannel experience for customers provides a simpler, modern experience across all channels in the customer policy lifecycle. It also allows your agency to provide customers with self-service technology that gives customers the freedom to access insurance information, documents and online bill pay on demand. Through an omnichannel experience, your agency can optimize client relationships, differentiate their business from their competitors and drive client retention through a connected customer experience.
Rich Belanger is chief technology officer at Applied Systems. He can be reached by sending an email to info@appliedsystems.com.
See also: