CHANGE: the 8 commandments of transformation in insurance
“E-health: shifting from insurer to key player in prevention, thanks to digital”
Digitisation of documents, improved digital interaction with customers, new products and services based around self care, advances in IT, and so on – digital and e-health are changing the face of insurance. To address this challenge and to make a success of e-transformation, here are eight best practices to implement within GM, IT and CDO.
1 “Thou shalt modernise the Front Office.”
Digital tools used as sales aids play a large part in improving the commercial performance of networks and the productivity of the after-sales process, as well as facilitating multi-distribution within an omni-channel or omni-access context. The effect of this is to free up sales time. Managers are gradually moving towards paperless solutions and having access to integrated workstations equipped with shared tools intended to increase efficiency and facilitate the pooling of resources. Indeed, the most noteworthy advances in terms of Front Office relate to the development of direct interaction (insurer website and social networks) and various mobile apps. These seek to increase traffic from prospective customers and to win new customers.
2 “Thou shalt develop customer knowledge.”
By exploiting the large volume of data from connected objects and other smart devices, insurance providers can improve their customer knowledge and gain an undeniable competitive advantage by piecing together an overall understanding of the market. Actuarial risk is better controlled as there is real knowledge of the risk exposure. The image and appeal of the brand are improved thanks to active prevention. Not forgetting long-term customer loyalty and mid-term improvements in combined ratios.
3 “Thou shalt innovate in thy products and services.”
With the widespread use of online tools and the establishment of a seamless, coherent customer experience, it becomes possible to identify prospective customers and to redirect them to physical or digital networks, with services such as chat, videoconferencing or virtual advisors. As for self care, this entails services (quote, claim, subscription, etc.) that customers are able to access without the need for any assistance. By monitoring lifestyle choices, connectics can be used to evaluate the risk profile of insured parties and to revise the terms of a product offer. This approach provides the opportunity to identify multiple risks (diabetes, high cholesterol, high blood pressure) and to oversee the correct use of all the detection tools.
4 “Thou shalt digitise even more processes.”
In addition to electronic signatures being legally recognised, online follow-up of health insurance plans is expanding, with customers now able to modify or add options via their online account, directly and at any time. Throughout the period of the insurance plan, the insurer will remain connected to the customer, via all available digital channels, and their presence and availability will be made known.
5 “Thou shalt promote technology to improve management of service provision.”
Claims management is a telling indicator of the image that an insurance provider reflects to its customers. Improving this image is rooted in two main priorities. Firstly, significant investment is earmarked for computerising the claims management process, and also for integrating new technologies in order to make this process more seamless and straightforward. Secondly, in order to improve the interaction between suppliers and intermediaries, or to speed up the report process as required by a customer, the technologies are constantly tested under different usages and processes in order to determine their ideal application.
6 “Thou shalt digitise shared processes.”
Simplified processes and greater efficiency result in reduced transaction time and make it possible to deliver a positive customer experience in near real time. At source, the transformation projects tackle the entire document management system for incoming, circulating and outgoing documents.
7 “Thou shalt develop digital partnerships.”
Outsourcing some transactions makes it possible to gather customer data via partner platforms; to sell associated insurance products (provide a customer with reduced price connected objects, such as a pacemaker, which can then be used in conjunction with the prevention services offered by the insurance provider); to sell insurance products via the partners’ digital and physical distribution channels (a doctor recommending health insurance following a stay in hospital, a clothing brand following the purchase of connected clothing, and so on).
8 “Thou shalt oversee the programme of digitisation.”
From analysis tools through to descriptive and predictive models, all key indicators must be closely monitored in order to be able to coordinate the different fields of activity. Furthermore, insurance providers are faced with rapidly increasing their bimodal IT setup in order to remain in step with the digital transformation and to adapt their existing IT infrastructure at the same time. As such, agile IT is used increasingly in the process of designing connected offers in order to better serve the needs of customers, and thereby to increase turnover by attracting new populations and gaining the loyalty of existing customers. As a final point, such activities involve a huge amount of market- and consumer-related data; insurance providers need to be highly vigilant with regard to data storage and security in order to guard against cyber-attacks.
Emmanuel Gambart de Lignières
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