Having identified the priorities a would-be Digital Insurer must address, let’s get practical and talk about how to make this journey.
Digital transformation is not an add-on, with the rest of the business continuing merrily along as before. This is the mistake that many companies across all industries make. In fact, digital transformation spans the entire value chain, and each of the four areas to be addressed will affect marketing, distribution and channel management, product, underwriting and new business, policy and contract management, and claims management.
Digital transformation will also reach down into all the support functions, such as legal and compliance, finance and accounting, and risk management—these need to be included in your planning.
Such far-reaching transformation is not something that can—or should—be accomplished overnight. Because it affects the whole business, it’s better to conceptualize it as a journey from a standalone, legacy insurance business along a spectrum that extends, ultimately, to becoming a holistic multichannel insurer. This end position, which not all insurers will aim for, is the ability to offer customers an intensively personalized insurance solution that meets their needs and preferences wherever they are and whenever they require. Thanks to the power of social media and data analytics, that solution is co-created with the help of the customer herself.
The intermediate stages are the connected insurer (optimized branch network and contact center, with enhanced digital channels that have basic integration) and the interactive insurer (integrated multichannel architecture powered by analytics and supporting a mobile workforce and customer base).
For more on the radical digital transformation in insurance, read P&C Insurance – The Digital Insurer: Change Now to Get Ahead and Life Insurance – The Digital Insurer: Change Now to Get Ahead
Next, I’ll explain the engine that powers this transformation: the digital center of excellence.