Working for Charles Taylor plc, an organisation that both operates within and provides services to the Insurance sector, it is plain to see that although it is necessary to make changes to business operations, legacy technology and market culture - it is not a simple thing to do.
The combination of advanced technology, increased regulations and customer demands for new products and services creates a situation where insurers are under great pressure to undertake costly and painful business changes in order to allow them to embrace technology and maintain their competitiveness in a changing "digital" market.
Presently, within the insurance sector the adage of "doing the right things" and "doing things right"; translates to "undertaking business and technology change" and "making sufficient investment in the people, technology and services to achieve this quickly and effectively".
This environment not only presents opportunities to insurers, but also to technology service providers in the sector. Their challenge is to find ways to support the market in achieving this fundamental shift in how it operates and interacts with the market. Charles Taylor has certainly recognised this opportunity which is illustrated by it's recent establishment of the Charles Taylor InsureTech business and investments in insurance specific technology companies like Fadata.
This article quite rightly highlights some key technology trends for 2016 including leveraging cloud infrastructure, a focus on customer experience and business process automation. However, the importance of understanding both the insurance business and technology is a critical success factor to undertake the change necessary to realise the benefits from these technologies.
Appreciating the benefits of change is the first step, but taking the plunge and sufficiently investing in undertaking this change will determine the winners in the race to technology enablement and winning market share in the digital insurance era.
insurance agents not only feel pressured to digitize their workflow, but also must streamline business processes to make the cost of doing business more efficient and in-line with these regulations. These complexities are challenging the fundamental ways agents and brokers have done business in the past. According to a Harvard Review report, insurance agents who embraced the digital practice reported a 65% cost reduction and a 90% reduction in turnaround time on key insurance processes. Insurance organizations that are flexible, agile and can offer advanced technology to create the kind of business processes that today’s clients demand are the ones that pose a threat to the traditional, perhaps even larger insurance organizations.