Digital Insurance is a Matter of Fact
The Digital evolution is shaping the insurance industry in a stunning fashion. To face this phenomenon Insurers have to react quickly and how they do it will impact on their short-, medium- and long-term strategies.
But which are the best investments for Insurers to join the digital revolution? A first answer comes from the improvement in customer experience thanks to front-end Insurers legacy applications, now with more responsive and smart technologies, including business process management (BPM) solutions, portals and analytics. Today, CIOs have to figure out all of the options available and how to identify the right solutions to support these wide, multiyear initiatives.
RGI is working on a major evolution of the well-known PASS_Insurance Policy Administration System, which is based on the extreme usability inspired by socials and B2C web portals, and on a highly flexible and open architecture. This allows to lay the foundation for the support of "Big Data" coming from socials, wearables, and, in general, from any kind of new digital channels and devices. In the next future, in fact, the new Policy Administration Systems will be able to provide automated, algorithm-based facilities by leveraging predictive models and other external sources, thus integrating information coming from the IoT, wearables and Smart devices.
Digital insurance is now a matter of fact. The digital Customer Experience is the new competitive ground for companies who want to offer a cutting-edge and competitive insurance experience. The customer is ready for the digital insurance while Insurers, that are working on the digital transformation in order to become Digital Insurers, are investing in technological enablers (i.e. e-signature, mobile, multichannel, new generation decoupled frontends and multidevice, e-payment…) to reach the Digital Innovation according to their roadmap evolution.
Just as an example, to embrace digital customer demands and to exploit a smart digital process, some Insurers have decided to develop new digital solutions, so called APPs, to support their clients in the claim management process. This is a strategic example of the digital services offered by multichannel distribution: B2C Apps dedicated to customers that allow them to take advantage of mobile technology and of the "anytime, anywhere" information availability, thanks also to real time integration with the insurer's back-end systems.
Real-time availability of information is also related to another innovative opportunity for the insurance market: the Usage Based Insurance (UBI), pay-as-you-drive (PAYD) or pay-how-you-drive (PHYD) insurance. This new insurance approach offers customer personalized insurance rates that are based on their driving behavior thanks to real-time tracking devices on their driving style.
The Usage Based Insurance is just one out of many ways to track the broad amount of data coming from customers' habits. Thus, it is clear that the competitive advantage for Insurers comes from structuring data from the new digital devices and channels, bringing detailed customers' information in order to create customized insurance products and services.
This steady progress of the availability of data is calling for professionals with specific skills to navigate into these huge data bases, able to cut out the useless noise of unstructured information and to make data talk, mining profitable knowledge. Therefore, companies are investing in Data Scientists for a careful customer profiling and to allow Insurers to tailor their products on customers' habits and preferences.
Along with Data scientists, a new business professional is emerging, the Chief Digital Officer (CDO), an ambassador of the corporate digital strategy, covering digital consumer's experiences across all business touch points, throughout the entire Digital Transformation. The CDO is the bridge between the traditional CIOs and the new paradigm of digital.
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RGI Corporate Marketing & Strategic Partnerships Director