The basic processes for insurance carriers—underwriting, claims management, and risk assessment—will not disappear or radically alter in the near or medium term. But the efficiency and effectiveness of those processes have got to change—and as soon as possible.
In order to remain competitive, leaders need to rethink existing processes, structures, and methods of customer interaction. This will enable them to meet changing customer expectations regarding speed and quality and unlock efficiency potential. And that transformation has to be more than customer-facing; a veneer of digital with old-school operations behind the scenes is not enough. Insurers have to work toward a goal of establishing purely digital, "no touch" operations.
Digitizing each step of the insurance value chain is not just for customer satisfaction and reduction of costs. It’s equally important to establish smart, digital operations for the sake of employees—attracting and retaining the best talent possible.