Digital Insurance as a Service
Author: Cindy Lee, Senior Digital Transformation Consultant
The digital disruption wave is pushing the insurance industry towards a digital future; and with disruption, comes new opportunity – particularly for the organisations who are bold enough to lead or follow fast.
In the Australian and New Zealand markets, regulatory guidelines are already shifting to be pro-digital. The merger and acquisition activity in the latter half of 2017 is triggering significant IT change programs that will inevitably look to include digital transformation; so 2018 is shaping up to be a year of change.
To capitalise on digital benefits, such as a streamlined value chain, insurers need to transform themselves and align services, processes, and technology to create experiences that delight their customers. It’s not simply a case of automating existing processes, since these have developed over years of workarounds and legacy constraints. Instead the transformation must respond to the market.
Insurance is undergoing significant change in terms of digital transformation, and aspires to increase automation, improve the quality of information, improve accuracy in risk pricing, with attention to administration and distribution costs – all enabled by a number of modernisation initiatives.
Our experience shows that moving to a digital platform, with the accompanying benefits of increased reach, reduced IT spend, greater agility and, data analytics for actionable insights; instigates enormous change for an organisation. Both business and IT teams need to re-orient their people and teams to be more agile and customer-centric, which results in a new operational model and business focus.