How to proactively modernise the insurance industry
Technology can empower insurers to innovate faster by reducing the average time to market of new and updated digital services – meeting evolving customer expectations in the process
Ultimately, the aim of a proactive insurance model is to decrease the number of claims being made
The saying “prevention is better than cure” is normally associated with healthcare – it is better to avoid illness than deal with the consequences and the same could also now be said of the insurance industry.
Given the wealth of healthcare information available today – and a plethora of healthy choices on the market – it is much easier than it used to be to see the positive links between an activity and how it can help mitigate illnesses.
In much the same way, insurers are quickly realising to keep growing revenue and fend off competition from digital-first start-ups, reacting to risks is not enough. It is increasingly apparent they need to prevent their clients from suffering any losses in the first place.
Today’s key threats, such as cyber crime, geopolitical tension and global health crises, are not about to go away anytime soon. These are major threats that will continue to evolve and present challenges for the insurance industry for years to come.
Consequently, dealing with them reactively will soon become limiting – not to mention slow in comparison with the approach of many digitally native rivals.
It is obvious a more proactive methodology is needed, but to successfully shift to a strategy that intercepts problems before they happen, a customer-centric digital transformation is needed.
Transforming insurance
The call for customer-centricity means it is no longer adequate for insurers to suddenly appear at the point of sale, renewal or claim. A personalised approach is expected at every stage of the insurance journey – and in a digital world, where alternative options are just a few clicks away, a customer will take their business to a competitor if their journey is not optimised.
A user-friendly digital platform therefore needs enough agility to swiftly process user requests – and enough intelligence to support customers with mitigating the threats they are seeking cover from. However, manually building a digital environment with this dual capability can be incredibly time-consuming and resource-draining.
That is where transformative technologies come in. By replicating expert processes, no-code/low-code runbooks enable IT teams to deploy applications without writing software themselves. This empowers organisations to innovate faster by reducing the average time to market of new and updated digital services – meeting evolving customer expectations in the process.
Similarly, hyper-automation software has the power to streamline repeatable IT processes with minimal human intervention. For insurers, this might result in accelerated underwriting, claims processing and customer support services. These solutions facilitate a digital workplace in which errors are minimised, costs are reduced and efficiency is enhanced – meaning employees can refocus on higher-value work, including improving user experiences and driving customer retention.
Harnessing user information
An agile digital platform like this offers the strongest foundation for proactive insurance models because it allows user data to be easily collected across all devices, applications and networks.
However, without software that provides full visibility across the whole digital estate, insurers can still lack a deeper understanding of the customer information available to them.
In fact, this concern is so pressing nearly all (94%) of financial services and insurance leaders polled in Riverbed’s Global Digital Employee Experience Survey claimed there must be greater investment in solutions that provide actionable insights.
Unified observability and artificial intelligence for IT operations platforms are designed to achieve exactly that. They directly rectify a lack of transparency by centralising all user data points into one viewpoint, which in turn provides insurers with a comprehensive image of customer risk profiles.
By leveraging these insights, insurers can target policyholders with personalised offers or consultative messaging, encouraging them to take preventative measures relevant to their cover.
If the data is available, insurance providers in any industry can use this strategy to revolutionise their proactivity. For instance, vehicle insurers can send out road safety advice to drivers from higher-risk demographics. Medical insurers can build commercial partnerships with lifestyle initiatives or brands to share healthy recommendations or services across the customer database. While home/travel insurers can distribute real-time notifications to policyholders planning to buy property in/visit areas where natural disasters or geopolitical crises are rife.
Ultimately, the aim of a proactive insurance model is to decrease the number of claims being made. Although it is impossible to predict the future, technology that collates customer information into insights and forecasts is imperative for ramping up risk prevention strategies. And by modernising their digital platforms, traditional insurers can bridge the generation gap between them and their digitally native competitors.
Whether it is a start-up or an industry leader, any insurance firm can gain a fundamental advantage if it attracts business while simultaneously reducing its financial output.
By protecting individual customers from the threats most pertinent to their claim, insurers can take strides towards exceeding their business goals – while still fostering a culture where customer welfare comes first.
John Atkinson is director of solutions engineering, UK and Ireland at Riverbed Technology
