At this year’s Novarica Insurance Technology Research Council Meeting, I had the opportunity to facilitate a workshop regarding digital initiatives in insurance. Senior IT leaders were engaged in a lively discussion, including the following topics:
Defining Digital
Digital is not only about enhancing customer experience, but also includes improving efficiency through new technology and streamlining processes. While carriers had differing opinions on whether they considered customer experience and digital to overlap or be considered separately, they acknowledged that thinking about a digital strategy involves focusing on engagement channels regardless of distribution channels. Driving efficiency and value for the customer, whether that is the policyholder or the agent, should be done by accepting and accommodating a wide set of engagement preferences. As one IT leader commented, “the strategies we focus on are ultimately driven by how we want to communicate with the stakeholder and how it services their needs.”
Customer Journey Mapping
Understanding the customer, whether the policyholder or the agent, is vital. Carriers should have a vision for what can be and decide the type and size of innovation to take. While insurers agreed that taking an outside-in view was vital, they also noted that the challenge was bringing it into the organization. By journey mapping the experience of various personas outside of the insurance experience that trigger a predisposition to purchasing coverage, carriers can find the sweet spot of digital engagement. Insurers can take incremental steps using technologies that have been proven in other industries and have had time to mature, or take bigger leaps with newer and potentially riskier technologies.
Approach to Digital Transformation
For successful digital initiatives, an organization requires strong ownership in order to organize for success. Digital priorities should be owned by leaders or a committee and incorporated into governance processes. A digital roadmap or strategy should also guide the actions of the enterprise towards a cohesive vision. This will not only help the organization make strategic choices for long-term change, but also allow carriers to experiment with single-use pilots and make tactical decisions that will more immediate improvements. Aligning the organization for digital change through strong sponsorship and a unified technological vision will encourage a culture that thinks with a digital mindset to consider the needs of the future end user.
In addition to these three themes, we discussed other topics from the use of third-party broker data to the engagement of independent agents. To learn more about how insurers are implementing digital strategies, read our Novarica New Normal: 100 Data, Digital, and Core Capabilities reports for both P/C insurers and L/H/A insurers or reach out to us at [email protected].
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