Digital transformation means different things to different insurance businesses. It’s not purely about saving money, driving efficiencies by replacing outdated back-office technology, or improving the customer journey with a sleek front-end. It’s about incorporating the use of data and delivering a single version of the truth, accessible to insurance businesses of all shapes and sizes, that flows fluidly and allows them to jump on emerging trends and seize opportunities to enhance customer value.
However, in my experience, the biggest problem is that businesses simply don’t know where to begin, and even if they do, the market is geared towards the big players with big budgets. This needs to change. COVID19 has demonstrated just how important agility is to survival, and therefore as we move forward into the new normal, the biggest driving force behind change will be the democratisation of innovation.
Democratizing digital means giving smaller players access to the tools, innovative tactics and agile development required to drive impactful transformation, and an advanced ability to constantly reimagine products and services at relatively low cost and in short time frames. Every insurance business no matter their size or specialism can be empowered to be an insurtech now.
Start with the customer
Insurance customers today do their research, they seek personalized experiences, they want insurance providers to intuitively understand and even anticipate their needs, and they expect that their purchasing journeys and insurance touchpoints be digital.
It may sound obvious, but the route to reinvention lies in adopting new ideas and doing things differently. Insurance business must reframe their view about what's important and reimagine service through the customer lens and work to ensure every touchpoint makes the customer journey as effortless as possible.
Stella, a new motor insurance brand for women just launched in Australia is a shining example of what customer-centric transformation really means. Stella keeps the customer at the very heart throughout every stage of the insurance journey, thanks to the innovative use of APIs and seamless data flow. Built from the ground up every part of the insurance operating ecosystem is connected - from product design and build, to quote and buy, distribution, CRM, and marketing.
Every insurance business can be an Insurtech with the right innovation partner
This kind of innovation is not limited to new businesses. With the right partner in place, an iterative approach is possible, integrating with legacy systems and allowing them to be phased out painlessly as part of a sustainable and cost-effective route to digitization. It’s also not limited to those with big budgets.
For too long, big insurance software houses have had a stranglehold on the market, but the real innovation is happening in the insurtech community, where collective learnings from the diversity of businesses they serve, opensource innovation, advanced APIs and rich data sets are driving continuous enhancement and invention.
Investment in insurtech innovation gives smaller insurance businesses greater access to new opportunities, new ways of working, and most importantly, advanced abilities to compete on a level playing field with bigger players.