London Insurance Market leaders share their obstacles to successful CX innovation at recent city events.
We’ve recently been out and about attending events for the London Insurance Market – specifically TINTech 2019, hosted by the Insurance Network, and the Technology and Innovation Leaders Practice Group, hosted by LM Forums.
It’s been really interesting to once again be submerged in the headspace of the Insurance Claims Market, hearing first-hand the pinch and pain points of the industry as a whole – and being involved in some lively and eye-opening debate surrounding those challenges. It certainly has been thought provoking as to what the future may hold for the London Market.
At this year’s TINTech event there were several hot topics up for discussion, such as Blockchain, RPA and Low-code – and it seemed those were closely mirrored at the LM Forums event too.
One thing was abundantly clear across the board, Customer Experience and growth is high on the CEO agenda. But how does the IT Strategy support this? What new approaches to CX innovation are available? We’ve made some notes to consider en-route to a brighter digital transformation for the industry.
How do you approach a digital transformation within the insurance and claims sectors? Here are some key pointers based on some pain points:
1. Understand your problems and your areas of weakness
Knowing what you’re dealing with is half the battle. Are you looking for a system that patches problems in your current set up for a short-term fix, or do you realistically need to rip it out and start again? Or are you somewhere in-between? A digital agenda needs more than just a new PAS.
One main undercurrent across the events was to beware of making superficial or cosmetic changes in a futile attempt to disguise the true nature of your legacy products – or in other words you can’t put lipstick on a pig.
It is crucial to use the best, most cost-effective tech (long-term) in order to optimise your systems performance while delivering top notch Customer Experience. Take stock and have a vison, an overarching goal.
2. Use new tech initiatives to boost your customer offering
Is there a way to integrate new customer benefitting technology? Such as AI for example. Staying ahead of the curve will help you stay competitive in the CX steaks, as customers will hold you to the standards of the best consumer interaction they experience – which means you’re automatically competing with some big players even outside of the insurance arena.
3. New technology alone will not resolve the problems
There’s a lot of buzz around technology that helps to facilitate change, such as Blockchain, RPA and Low-code. However, one thing’s for sure – new technology alone will not resolve the industry’s problems. Organisations need the buy in of the whole business to adopt changes, without pushback.
4. Don’t make things more complicated than they need to be
The latest technologies may sound great, but AI, RPA and Blockchain are only part of the solution. The bigger focus needs to be on how they all knit together in order to provide a joined-up process. A big tip at the TINTech event was don’t make things more complicated than they need to be. You don’t need to overwork the change initiative. Sometimes the simplest solution really is the best solution.
5. The way you deal with legacy technology can be make or break
There’s a common understanding among the insurance industry that legacy technology is the biggest barrier to CX progression, and that technical debt is costly and inefficient. The key to successful modernisation is assessing the tech you have, understanding the problem areas and scrutinising where it is best to invest, in order to achieve your goals as well as provide a better customer experience. The challenge is managing legacy applications and new technology whilst still delivering on customer expectations.
6. Communication is key – are you integrated?
Sometimes the issue with systems in a claims process is that they don’t integrate well, and they don’t communicate or talk to each other how they should – or the output doesn’t make sense. So, there should be a focus on interfaces and integrations.
7. Don’t automate bad process
Things can be hindered further by poor processes – but automating poor processes is also not the solution. Using a ‘sticky plaster’ approach can lead to more costs in the long run. Address the bad processes as a first port of call.
8. Accomplish/fail fast
Work with an Agile approach. Try, fail and/or win fast. Without wanting to sound cliché, time is money – and being able to build quickly, fix quickly and adapt quickly will not only be time saving, but could also be cost saving down the line. Rapid development is key. Five-year IT plans are no longer fit for purpose. Sometimes it’s best to invest in systems that increase agility, rather than systems that immediately save you money.
9. Forward plan and future proof (where possible)
Finally, and the biggest tip to take away from both events is to understand that what works now might not in six months. Invest in systems that won't be legacy in a year. Don’t wait for perfection – because in an ever-evolving environment perfection (if it even exists!) doesn’t last. If you make that your focus you’ll soon be left on the shelf.
These top tips and pointers should put you on the best possible track when considering a digital transformation within the insurance and claims sector. With the right tech at your fingertips, your transformation wish list could become reality.
For more information on Low-code, or to find out how we can help you achieve a more successful evolution in the insurance and claims market please contact us here.