Exposing the Secrets to Insurance Profitability
Blog: Kofax Journal
The dirty little secret of the insurance industry is out: when it comes to sustainable, profitable growth, customer experience is significantly more important than the product. The power lies in the hands of the customer—and the faster insurers accept that fact, the faster they can make the shift toward digital transformation and improved profitability.
This assessment and many others come to light in the pages of Insuring a Digital Future: A Guide to Digital Transformation in Insurance – an enlightening new white paper illuminating a variety of imperatives for digital success in insurance, including:
- The all-important four C’s of digital transformation in insurance: customers, competitors, costs and compliance
- The impact of mobile on acquisition, retention and cross-selling
- A wellspring of critical facts and figures, including information about the percentage of insurers comprehensively investing in digital technologies
The Gift of Information
While the aforementioned power lies in the hands of the customer, digital transformation delivers an equally valuable gift to the hands of the insurer: information. It has been predicted that there will be more than 40 zettabytes (one zettabyte is equivalent to 1000 to the seventh power) of data by 2020, and the digitization of insurance data will serve as a game-changer for insurers.
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This tidal wave of data can be harnessed to improve the basics of insurance—an advantage that simply wouldn’t be realistic or even conceivable where the data to remain paper-based and analog.
A Purposeful Approach to Digital Transformation
One of the key findings in the report is organizational readiness for digital transformation is imperative to its success. An insurance company would be unwise to expect to achieve a viable transformation in piecemeal or without a legitimate strategy. In fact, the report lists three critical success factors when it comes to creating organizational readiness for digital transformation, one of which is to reject the notion that viable transformation can be achieved with an ad hoc approach. That’s change, not transformation.
A comprehensive approach to both customer experience and back-end operations like policy maintenance and claims processing is likely to include digital options like:
- Mobile capture
- Process intelligence
- Customer communications management
- Robotic process automation
- Case management
According to an Accenture report cited in the white paper, 75% of insurers believe that, in the future, industry boundaries will dramatically blur as digital platforms reshape the industry into interconnected ecosystems. That presents an opportunity. Insurance organizations can either embrace this disruption of the status quo and use it as a means to explore new frontiers in selling solutions (as opposed to just products and services), or they can simply fade away.
Take the Next Step to Digitally Transform Your Insurance Enterprise
If your insurance organization is seeking thought leadership and guidance on digital transformation, download Insuring a Digital Future: A Guide to Digital Transformation in Insurance now. It can also be accessed by calling (949) 727-1733.