Insurance has been in existence since 1750 BC. With such a history, it’s logical to assume that any technology used in the industry is a recent phenomenon.
And, it’s probably been adapted and adopted piecemeal.
The problem is, when solutions are bolted on bit by bit, they don’t really work well together. In an article by Damco (a digital transformation and technology company), insurance companies are advised to consolidate their disparate systems.
The article starts by talking about how various systems that try to coordinate with each other can lead to friction in internal communication, optimisation of processes, and collaboration within the business.
More importantly, it can also negatively impact customer-facing metrics.
A multitude of systems spread across multiple databases doesn’t really scream “synergy”. To create synergy (and we all love buzzwords!), insurers must consider insurance systems and data consolidation.
The article discusses the three important reasons to do so:
- Harnessing the power of data to grow the business
- Giving customers a seamless and consistent experience
- Improving product offerings
Business Intelligence and Data Management
Information is power. When it’s your business’s information, you want to use it to accelerate your growth. For that, however, this data needs to be accessible and cohesive.
Siloed information gives you parts of the story. Then, you either need to patch it all together to get the complete picture or stockpile information in vast quantities without getting any value out of it.
For insurers, this information is especially important. According to the Financial Times, technology has failed to disrupt the insurance industry because people don’t want to think about insurance.
In such a scenario, any bit of information that could help you improve your figures is invaluable.
Suppose the marketing department has information that can help the sales team, or the sales team has client information that could help marketing design a better campaign. That information needs to be accessible for you to exploit it.
Segregated data also means the formats could be different or it is tagged inconsistently. So, even if all teams have access to it, it doesn’t have the same impact or meaning for everyone.
Part of data management is bringing it all together in a consistent way so all teams have equal access to it. That means everyone has the complete picture, resulting in better decision-making.
Customer Experience and Satisfaction
Marketing today is not limited to one channel or format; neither is communication. You may advertise your wares through paid ads, social media, knowledge-sharing blogs, and more. Your customer could find you through any one of these.
Then, they could contact you via email, phone call, or maybe a LiveChat feature on your website. Or, a combination of these.
Good customer service would mean that once the customer contacts you, they don’t have to introduce themselves in great detail in any subsequent interactions.
If they have to share their information over and over again, they are not going to be happy.
Similarly, if they’ve already bought a product, they don’t want to see ads for the same one. At the same, you don’t want to miss out on the chance to upsell to existing customers.
When you have a consolidated insurance and data management system, it’s easier to have all of this information accessible (and ready to be utilised efficiently and seamlessly).
Product Development and Innovation
In the process of insurance evolution, the one trend that has emerged is that people want customisable products.
Customisation makes sense as well. People have different needs (and different risks). Something like insurance cannot be a “one size fits all” kind of deal.
If you could offer your customers a product that was designed for them, you’d see better satisfaction levels. And, they’d be more likely to buy from you.
However, in order to do so, you need to have a well-rounded profile of your customers. That would enable your marketing team to plan a campaign designed for them, your sales team to pitch the product to them, and your underwriter to calculate their risks and premiums.
That’s how you’d be able to offer them products they just can’t refuse.
Of course, you’d need a well-planned strategy in order to get everything together, along with a software solution that works for you. For example, a Third Party Administrator product would help link different business processes under one “roof”.
The key is to design a roadmap that works for you and then select the technology that will help you get there.