2018 is the year for insurance companies to adopt a digital-first mindset. PricewaterhouseCooper’s Insurance Top Issues Annual Report has highlighted the need for insurers to understand the end-to-end customer experience, enhance their existing services and become a digital and data-driven organization.
Insurers have adopted an ad-hoc approach to deploying new technologies in an attempt to keep up with ever-evolving customer expectations. Subsequently, insurers suffer from fragmented digital estates and siloed databases, leading to a lack of consistency and disjointed customer engagement. The PwC Report outlines the need to design and implement digital platforms that can handle this potential disruption to service, not only innovating current internal processes and core capabilities, but moving towards digital differentiation, effective use of data and valuable analytics, continual innovation and strategic partnering with InsurTech companies.
A true digital transformation is required if insurance companies intend to keep up with, and outperform, their competitors in the sector. The key factors to this are digitalization and utilizing data effectively. Insurers should not use a bottom-up approach, only investing in select digital capabilities that support their existing business model, and instead focus on improving the value chain as a whole.
By taking a top-down approach and implementing a joined up, digitally-focused approach which looks at the customer journey end-to-end, insurers can increase growth and reduce costs, becoming a digital, data-driven organization.