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The State of Insurance Digital Transformation: The Customer-Focused Transformation of Insurance

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    Report

  • 14 Pages
  • May 2022
  • Region: Global
  • Arizent
  • ID: 5715048
Is insurance still a slow mover when it comes to technology and digital transformation? It depends on your perspective. One could make a case that over the past decade, the process of buying insurance and making claims has changed more than the process of buying the home or car that insurance products are being bought to protect. For example, insurance products are sold completely via smartphone. A trip to an agent or even using a full-size keyboard and monitor are not required to secure many common coverages like renter’s insurance and personal auto. After an accident, customers are uploading their own images through the same channel and receiving recommendations for repair shops, sometimes without ever speaking to an adjuster in person or on the phone.

And yet the insurance industry itself still sees a lot of room for growth in order to give customers the best possible digital experience. Carriers see themselves not in competition with their own pasts, but the wide range of nearly instantaneous processes used daily by their customer base, from one-click shopping on Amazon to five-minute signups for Robinhood. While some lines - like the aforementioned renter’s insurance and personal auto - can meet those standards, that’s not the limit of insurance’s potential, in the opinion of carriers, to provide value to customers in the form of risk protection in a volatile world.

The COVID-19 pandemic has led to hyper-awareness among consumers of their personal risk level, with its deep disruption of their health and financial security. Customers of small business insurance learned harsh lessons about exclusions, as the pandemic froze supply chains and economic activity. The same supply chain woes backlogged repairs on homes and vehicles, raising costs to repair and ultimately premiums. Rising property values are coming up against extreme weather events. This means insurers are contending with headwinds of trust and understanding of their complex product.

It’s no surprise, then, that the top priority for insurers in their digital transformation is customer experience. Carriers realize that this is not simply a matter of putting applications online. Rather, they are using digital tools across the value chain to make sure customers are getting the right products and services for their needs. They are renovating their workflows to reduce barriers to growth. And they are doing it all in an environment of hyper-competition for digitally native talent.

Table of Contents

  • Introduction
  • Key Findings
  • About this report
  • Customer experience is the biggest priority
  • Different stakeholders see different starting points
  • The COVID impact on innovation
  • Enthusiasm outstripping technological preparedness
  • The insurance digital transformation ecosystem
  • Conclusions