Digital transformation

What are the Stakes for the Insurance Industry?

Increased competitive pressure on the insurance sector

The insurance industry is currently experiencing an increase in the number of competitive pressure  due to the multiplication of insurance comparators and the emergence of new competitors with new approaches. The GAFA (Google, Apple, Facebook, Amazon) also represent a threat as they will be able to sell tomorrow, ultra-personalized insurancethrough the analysis of their users' data.

At the same time, the insurance sector must adapt to the new behaviors of its customers who have fully integrated the digital in their daily consumption patterns. This is illustrated by the desire to benefit from a better customer experience thanks to the personalization of offers and omnichannelity.

Il est donc nécessaire pour les assureurs d’optimiser à la fois la qualité de leurs services mais également l’customer's experiencewhich is becoming a real engine of growth for economic players.

These changes are accompanied by the digitalization of the sector: indeed, digital technology provides a complete response to the new needs of insurance players:

facilitate and accelerate interaction with their customers

collect and analyze data

propose a tailor-made offer to their customers

It is in this context of " digitization " that insurers must adapt their strategies to best meet their customers' expectations and implement the interactions that will enable them to create value for their policyholders.

Digital: a response to the problems of the sector for insurance players?

One of the main challenges of digital transformation for the insurance industry is the improvement ofliorof the customer experience. In the current context, when subscribing to a contract or when a claim occurs, insurers have mainly the opportunity to communicate and exchange with their policyholders.

The objective for insurers is to strengthen the relationship with their policyholdersby communicating with them throughout the life cycle of the contract. This requires the implementation of a commercial strategy based on various digital tools that will strengthen the customer experience :

A presence on the web via a website will allow you to gain visibility and thus attract new potential customers. It will also allow to communicate information to its portfolio of insureds.

The implementation of an extranet allows policyholders to have access to all the elements of their contract, to declare and follow up a claim, to make a payment directly via the extranet.

Collecting and analyzing data from its portfolio of insureds in order to propose customized offers.

Improving the customer experience also requires insurers to be more responsive to their policyholders' requests. To do this, it is now necessary for the insurance industry to be equipped withmanagement tools that will allow to centralize the information of the insured and to automate the contract management process.

The implementation of electronic document management solutions that integrate with ERP systems facilitates access to customer information (contracts, emails, photos, etc.) and allows managers to gain in productivity.

The setting up of a automated task management and accessible to all employees: document relaunching, customer appointments, claims follow-up, customer notes, etc., allows insurers to provide better follow-up for each customer.

The digital transformation also impacts the relationship between brokers, wholesalers and insurance companies. Indeed, digital technology has pushed the insurance industry to implement standards and guidelines such as EDI Brokerage 2.0 that facilitate the transmission of information between intermediaries and companies. It is now necessary for insurance brokers and wholesalers to respect and integrate these regulations into their strategy.

Digital transformation therefore provides insurers with the tools that will enable them to create added value for their policyholders and thus enrich thecustomer's experience.

Source: : Leader informatique