The rise of no-code/low code development in enterprise IT. I explore all things Digital Transformation. While in the SMB segment, no-code tools became the norm already a while ago, enterprises, for the most part, continued to rely on the traditional development projects powered by internal resources or external integrators. They’ve also started to get more comfortable with doing serious things — such as taking out mortgages and buying cars — at the click of a button. The telecommunications, healthcare, and financial services industries have seen adoption and … So enterprises can now offload some security and compliance tasks to vendors while ensuring high-quality security and compliance standards. A late-April 2020 survey of European insurance executives found that some 89 percent of respondents expect a significant acceleration in digitization, and most also anticipate a further shift in channel mix. Just "going digital" is no longer enough. The extraordinary events of 2020 have placed new demands on claims that have played an important role in accelerating the digital transformation in this area. Digital Transformation in the Insurance Industry: Emerging Trends. 5 Digital Transformation Trends Insurance Leaders Should Watch in 2021 Adapting to new ways of working and thinking is never easy, but the insurance industry is ripe for a revolution, and it is up to industry leaders to understand the trends that will lead the way. The Insurance industry generates around $5 trillion revenue* annually and out of which P&C Insurance contributes $1 trillion. IoT increases the need for streaming analytics to innovate. 11. Simplifying the claims process. Machine learning and AI technologies are going to continue growing in popularity as risk assessment tools. At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies – John Chambers, Cisco System Complete digital transformation in the insurance industry can bring about a productive disruption.There is a growing need for ‘one-click processes’ in every sector across the globe. Insurance providers may also be able to prevent drivers’ phones from operating while their vehicle is in operation. One thing is for sure: the insurance market is known to be oversaturated with providers. Insurance and AI. So what does this mean? We’ve all had the excruciating experience of explaining our accident to one service agent, and then getting transferred to another agent, only to tell the same story all over again. Insurers can now separate their front-end presentation layer from their back-end data functionality to create custom digital experiences. Competition is becoming tougher. One of the most pronounced trends is the normalization of no-code/low code development in enterprise IT. I spend my time researching, analyzing and providing the world’s best and brightest companies with insights as to how digital transformation, disruption, innovation and the experience economy are changing how business is done. But now, the digital channel is gaining the edge. I am a principal analyst of Futurum Research and CEO of Broadsuite Media Group. Employee-facing apps that encourage teamwork, efficient collaboration, and empower employees are a must in the new normal. However, it seems that even after the COVID-19 pandemic is behind us, the work from home culture will stay with us. Now, agents and brokers are increasingly moving to digital tools, while the self-service digital channel is also rising due to skyrocketing customer demand. Ten years ago, telling people you could reduce their pain with a … In a way, headless tech is a complementary trend that goes hand in hand with no-code tools for developing customer-facing front-ends. Now, insurance companies are making better use of technology to store customer history and data so all agents—whether contacted by a bot, text or phone — will have access to the same information. Big data and analytics. Technology is growing increasingly advanced and complex, touching all areas of daily lives and business activity, including the insurance industry. It is, however, better to reverse the process and begin the transformation to a digital enterprise at the interface with the customer. … P&C Insurance industry is lagging with its digital transformation initiatives. While incumbents are tapping into their existing customer relationships and customer data, InsurTechs provide the technology, technical know-how, and support. Increased focus on algorithmic risk assessment. By offering a particular client, a particular product at a particular price point can significantly increase a policy sale probability. But finally — after decades of working with clunky workflows, outdated software, and lots of paper — many insurance companies are starting to get a taste of the tech bug. This improves processing speed and accuracy, not only in policy administration but also in risk assessment. As e-signatures and digital forms are being normalized, customers expect to complete nearly all (if not all) actions with their insurer remotely via digital tools - from account opening to policy renewals. All rights reserved. Conclusion. Ah — the beauty of the self-service model. To prevent insurance fraud, some health insurance providers incorporate … The digital transformation of insurance – powered by artificial intelligence, machine learning, predictive analytics, mobile service, live chat, etc. Insurers are making significant investments … Personalization capabilities are the new competitive edge. Digital Innovation in Insurance. Truth be told, the insurance industry has never been much of a leader when it comes to technology. Maximizing conversion and improving sales funnels on digital channels becomes ever more important. Organizations increasingly adopt hybrid cloud as they aim to leverage the advantages of both cloud and public clouds. Even products that sometimes require offline execution, such as physical signatures and medical underwriting, are increasingly transitioning to digital with the help of technology such as legally-binding eSignatures or face-recognition and tele-medicine. The AI-based tools provide solutions for insurance operations and claims settlement teams. The most crucial quality that makes no-code tools extremely attractive is accelerated time to market for new digital applications and products compared with traditional development projects. Four major themes have emerged along the journey toward the future of P&C claims: Artificial intelligence (AI) – World Economic Forum foresees that the impact of AI can be radical and … It means that I spend my life learning about what drives people to adopt new technology so I can share those secrets with companies that are ready to take their business to the next level. (Have you noticed a theme here? Traditionally, the process of filing a claim with an insurance provider … 4. Digital channel as the primary channel. Digitization in the insurance industry is beginning to gather pace and is expected to be one of the mainstays of insurance companies in India. From keynoting on the world’s largest stages to weekly insights on Forbes, Entrepreneur and our Blog, my goal is to provide our clients with what they need to know to out innovate and turn disruption from threat, into a business model for success. InsurTech firms have been showing significant growth in the areas of auto, … Changing Approach to Insurance. InsurTech Partnerships. Even better: you can enroll on the spot, having insurance in minutes without ever needing to speak to a sales agent. And it seems that the key lies in personalization and continuous improvement of the customer experience. Partnerships between InsurTechs and incumbents are a growing trend, and for a good reason - it is often a win-win proposition. While slow to start, the insurance industry has embraced digital transformation—in large part due to new competitors such as insurtech startups and platform companies entering the arena. Our prediction is that we will see more insurance products and applications that adopt the same principle. Biometric Identification. In insurance, this is particularly important, as back-ends are mired with legacy technology problems that is, for the most part, make them incompatible with the modern front-end experiences customers expect. In summary, this year’s conference theme, “The Digital Transformation of Insurance,” was evident throughout the event via the technologies, trends, business models, and case studies presented. In the past, when we got rear-ended, we’d have to move to the side of the road, fish out our insurance and AAA cards and start the agonizing process of informing everyone under the sun about our accident. Artificial Intelligence plays a significant role in the insurance industry. The early months of the pandemic put insurers in survival mode. By separating customer-facing front-ends and back-end processes while ensuring that the data flows freely between the two is another trend that we will see getting stronger in the near future. Digital insurance in 2018: Driving real impact with digital and analytics. 2020 has been a year when many digital transformation projects that were previously put on a backburner made their way to the front of the line. Manual workflows have been outdated even before the pandemic, but (with some minor exceptions) in the post-pandemic world, there is no place for paper-based workflows that require employees' physical presence. To compete in the increasingly digital marketplace, insurers must change their tactics to embrace digital transformation. Managing teams of remote and on-sign employes require a careful balance of efficiency and empowerment. The most well-known example of headless technology can be found in website development. You may opt-out by. Transformation works better outside-in: Many large insurance companies want to begin the transformation of their business processes and products from the inside-out by modernizing their corporate culture, internal processes and basic IT infrastructure. Here are the top digital transformation trends for the insurance industry. Insurers cannot continue to treat inefficient paperwork as the necessary evil and need to find solutions to improve customer experience on that front. Have you joined the revolution? By Tal Daskal, CEO and Co-Founder, EasySend. In the next decade, claims will transform more than any other area of the insurance business. One of which is analytics. To ensure a successful future the sector has increased service-based businesses and introduced new propositions - many of which were not available five years ago. 9. 12. Incumbent insurers have a difficult time competing with these newcomers to their previously sheltered markets. Perhaps that’s because hungry newcomer start-ups like Slice saw an opportunity to do insurance smarter, faster, and better. Insurance traditionally has been sold through physical channels, including agents or brokers, resellers, offices, and call centers. It makes sense they’d want to do the same thing with their insurance—managing everything from finding the right policy and making a claim, to tracking their car repair all from one place. (Apple is already planning to block texts in iOS 11.) In response, insurers must embrace change and rethink business models to move towards a compliant, secure and digitally-enabled operating model to enhance customer, employee, partner and other stakeholder experiences. The shift in culture from legacy to innovation. McKinsey's research shows how digitally smart insurers convert digital customers at six times the rate of their peers. No-cod tools amplify overstretched internal resources, reduce backlogs, and improve productivity. The technology trends such as the rise of no-code tools and "headless tech" mean that financial service organizations can keep their legacy architectures intact while improving the digital experience for customers and employees at the same time. According to a recent survey by Bloomberquint, the number of workers who say they won't go back to the office full time has increased significantly, with over a quarter of those surveyed planning to continue working remotely at least half the time after the pandemic is over. All Rights Reserved, This is a BETA experience. Digital transformation is revolutionizing every industry. But Machine Learning has value beyond claims processing; it has the power to help insurers automate the entire process. Or perhaps they realized how much time, money and risk they can save by updating and automating their processes — up to 65% in cost reduction alone. Case in point: the insurance industry. However, if you would like to share the information in this article, you may use the link below: https://insurtech.cioapplications.com/vp/EasySend/top_16_digital_transformation_trends_in_insurance_in_2021/. 16. For instance, wearable health trackers may be able to monitor alcohol levels and prevent one’s car from starting when the driver is under the influence. Even though P&C Insurance is huge, its affiliation with the technology is not as evident when compared with other industries. Internet of Things supports insurance technology by providing accurate and real-time data. How Digital Transformation is Changing the Insurance Industry Insurers are Rediscovering an Essential Truth: The Need to Provide Genuine Consumer Value as a Key Driver of Business Success. There is a pronounced shift in the mindset among insurance leaders and experts, as the need to innovate is becoming apparent to everyone involved. So inward facing innovation is likely to become a strong focus in the insurance industry. As we’ve learned, people want to use their phones to get “life” done as quickly and easily as possible. But it is now rapidly changing with the influx of new blood in the form of digital-first insurers, tech giants, and innovative startups. I am a principal analyst of Futurum Research and CEO of Broadsuite Media Group. Insurers are competing for new digital-native customers. Hybrid cloud architecture is on the rise. 5. More info, Copyright © 2021 CIOApplications. Those who jump in early to give customers what they want and need via digital transformation will absolutely have a leg up on the competition. Most crucial of all, IoT theoretically can empower insurers to move from their traditional role in risk protection to risk prevention. However, IoT implementation for risk assessment has many challenges. It’s true that digital transformation is revolutionizing every industry we can imagine — but some are moving faster than others. Below are some of the digital trends in the insurance industry: Buying Insurance Online Hassle-Free. Insurance companies that are able to leverage digital technology to improve their business see benefits of digital transformation such as automating manual processes, enhanced insights via data analysis, increased customer retention rates, efficiencies throughout workflows, cost savings, better risk management, and more. Digital innovation is key to winning customers and create new revenue streams. Digital Transformation in Insurance. What’s more, insurance companies of all shapes and sizes are searching for evergreen solutions — technology that can scale and update with changing demands and capabilities — to help them stay ahead of competitors. The key theme was as the title suggested, digital transformation programmes, although some of the presentations discussed innovation. The industry has shifted from a conservative into an increasingly innovation-focused, digital culture. We’ve seen it in grocery store lines and restaurants — and now we are finally seeing it in insurance. Cybersecurity. The five trends driving insurtech, live from DIA 2018. Bringing together the technology layer with the human layer, I seek to solve the biggest challenges that companies have today; how to grow, scale, change and adapt to a world where technology and media shift at breakneck speed. For insurers, this means that they need to support their employees to complete their tasks remotely. Amazon is gearing up to enter the auto insurance market, and digital-first insurers such as Lemonade are bringing new digital experiences to the market. As we are closing in on the end of 2020, it is clear that we are headed towards more innovation, better customer and employee experience, increased agility and innovative applications of existing technologies to age-old insurance problems such as risk-assessment claims processing and policy sales. However, this is no longer feasible. Treating patients with virtual reality. The latest market research report published by The Research Corporation entitled "Global Digital Transformation in Banking, Financial Services and Insurance … 15. Data provided by IoT is real-time; unfortunately, real-time analytics leave much to be desired. May 22, 2018 – At the Digital Insurance Agenda, insurtechs and leading players in the insurance world demonstrated ways they can partner to ... V. Digital transformation … Inefficient paper-pushing has been the norm in the insurance industry for centuries. There’s a lot of technologies today that cannot be realized to their fullest due to … Personalized Insurance. Data Exchange and Big Data Analysis. I went to the second and last day of this insurance event sponsored by Verdict Financial. With the help of blockchain (a certain industry trend for 2018) to keep our information safe, we’ll soon find that all our insurance policies, health and driving records and relevant information is stored on one simple swipe-able chip that will make enrollment and claims processes even easier to process. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy Policy |  Sitemap  |  Subscribe |  About Us. Work from home has been an exception, rather than the rule, for a very long time. This week, I’m continuing the series looking at digital transformation trends in different industries like healthcare, retail, finance, media and entertainment, education, government, and automotive. As files are becoming increasingly digitized, they can be easily analyzed using AI algorithms, eliminating manual processing entirely. Traditional websites have a back-end and a front-end (graphical user interface). As noted above, Slice offers what might soon be known as Insurance as a Service (IaaS)—allowing people to insure expensive items like cameras and jewelry only when they are in use. – is enabling insurers to do just that, and will keep changing the industry for years to come. Dig|In 2019 offered attendees a look at the current state of disruption within the insurance market and a glimpse into the industry’s future. 6 Insurance Trends CIOs Need to Know for Digital Transformation in 2021 The COVID-19 pandemic has revealed opportunities for insurers to increase productivity, improve customer experiences, and reduce operating expenses by 40% in the coming months and years, according to McKinsey. Why Vulnerability Is The New Badge Of Authenticity, Five Marketing Trends For Now — And What They’re Trying To Tell Us, Regaining Focus On ‘Good’ And ‘Purpose’ To Give AI Marketing The Human Touch, Why Emotional Branding Will Always Give Us Paws For Thought, Pack Lightly, Keep Renovating And Always Say ‘Maybe’: Stuff I Learned The Hard Way, Bleeding Vegan Burgers And Faux Fur: Millennials Are Creating The New Authentic, Ripping It Up: The Female Expats Challenging What It Means To Be American. ), Top Digital Transformation Trends in Insurance. 1. Tweet. Whatever the case, there’s finally forward movement in the insurance sector, and customers are rejoicing that companies are jumping into the digital age. Fueled by FinTech investments and InsurTech startups, insurance has become a hotbed of digital innovation. To do so, they have to disrupt the status quo with new digital products and businesses that reinvent conventional insurance offerings. Faster Connectivity. Increasingly, offline processes are transitioning into the digital realm. Though market participants claim that the insurance industry is not an early adopter of digital transformation, new players, business models and demanding customers are … There are so many possibilities, outside of saving money and increasing efficiency — the question now is only a matter of time. These are all great advancements, but my opinion there is so much more that can be done. Driving Insurance Agent Productivity with Mobile and Big Data... Brad Bodell, SVP and CIO, CNO Financial Group, Inc. Consumer Insight, Experimentation and Other Winning Strategies for... Louise Billmeyer, VP & CIO, Principal Financial Group, Innovation challenges and the Insurance Broker, JohnPetersen, CIO, Heffernan Insurance Brokers, How IT Transformation is Enabling Nationwide's Digitization, Michael Carrel, SVP-IT & CIO, Enterprise Applications, Nationwide, Murali Natarajan, SVP & CIO, West Bend Mutual Insurance, Mary Kotch, Executive Vice President & CIO, Validus Reinsurance, Mark L. Berthiaume, EVP, Chief Information Officer & Chief Technology Innovation Officer, The Hanover Insurance Group, Building Towards Tomorrow: Driving Change in Insurance, Mary Kotch, EVP & Global CIO, Validus Reinsurance.