Insurance companies are aware that change is necessary. They face, however, serious challenges, in their digitalization attempts, as their current environments are extremely fragmented.
Insurance companies are organized into departments and most departments use different modules or software systems, sometimes different ones for different business lines. Due to the modular philosophy of the standard software solutions on the market, insurers are used to thinking in terms of digitizing step by step, department by department, product by product. All of this leads to inevitable and huge overhead in all processes. In a fragmented environment, a lot of processes are needed just so data and information are transferred from one system to another, from one department to another.
Furthermore, a team from one department is often not at all aware what goes on in a different department.
All of this creates a very unpleasant and implausible experience for end customers. It also creates many unnecessary administrative tasks for the back office.
Digitalization done the right way offers a great opportunity to insurance companies. They can take a step back from their day-to-day operations and actually get an entirely new, better, smoother, seamless complete insurance process without any unnecessary administrative steps, with departments and teams in sinc and information flow in real-time to all parties involved.
While it is possible to digitize an existing business on one digital insurance technology platform, fully web- and cloud-based, for some companies a different approach gives a faster and hurdle-free way to the end goal. Especially for large structures, the launch of a green-field insurer can be the most strategic way to take full advantage of all opportunities digitalization offers. In a new structure, processes can be reimagined without being judged through the prism of long-standing practices. A powerful insurance technology platform comes with fully digitalized and optimized processes that can be flexibly adjusted if needed. A green-field insurer with a portfolio of both well-performing, well-known products, offered through a different experience, and completely new products addressing new life realities, can quickly establish itself as a force to be reckoned with when launched on a scalable insurance platform.