This article is the third and final installment from The digitalization of the insurance industry: Change is about to happen, but how?
We have had a look at two different strategies to start the digitalization in an insurance company. In this third installment we are focusing on an exciting third approach, suitable for insurance companies that can not or do not want to change their existing IT environments, but still want to reward their customers with a 100% online insurance process.
Rather than taking one entire vertical (all processes of one business line), and putting it on top of a completely new software solution, this approach envisions the introduction of a next-generation technology on one horizontal – the customer facing insurance cycle, throughout all business lines and products. Very important note: this approach doesn’t mean the development of a website or an app, fully depending on the capabilities of the existing systems in place. On the contrary, it involves the introduction of a complete, next-generation information system, which takes care of the insurance process experienced by the end customers, and is completely independent from the capabilities of the other systems. In this way insurers can keep up with the already underway transition to digital distribution.
An easy and fast insurance process that guarantees an incredible customer satisfaction. And isn’t that the goal?
What does this mean? Imagine a 100% online insurance process – not simply a website, nor a limited quotation mechanism for several products integrated on that website. But a smart, elegant solution that enables: first, a quotation for all products in the portfolio of the insurance company, then in a next step their underwriting, online payments via a number of preferred online payment providers, and the delivery of a digitally signed electronic policy to the customer’s profile in the system of the insurance company. And it doesn’t stop there. Imagine, the customers can manage their existing policies and purchase additional ones in that same profile. One of the best things from a client’s perspective – they can conveniently submit a claim from their profile by pushing several buttons, no paperwork, no entering of data that is already known to the insurance company, no phone calls. All of this available online and accessible by laptop, tablet and phone. An easy and fast insurance process that guarantees an incredible customer satisfaction. And isn’t that the goal?
Suitable for which companies? This approach can be used by all types of companies as a start of the digitalization. It is clearly a huge opportunity for large insurance companies to deliver a fully digital process to their customer base. Insurers can achieve a much higher customer satisfaction, reach new target customer groups, such as digital natives, and do all of this without having to change their existing IT infrastructure in a first step and at the same time not being limited by its lack of capacities for digital processes.