Digital Transformation in Insurance Industry

Mrunmayee Honrao | June 30, 2022 | 232 views | Read Time : 01:22 min

Digital_Trans_formation
Insurers of the future will play more of a risk avoidance role and less of a risk mitigation one.

The seemingly effective yet simple ideas of Netflix, Uber, Ola, Amazon, and many other ideas have forever transformed their industry segments. Digital transformation in the insurance industry is embraced in various ways to address the complex challenges posed by consumers, regulatory, and digital landscapes.

To keep up with insureds' demands, insurers have had to digitize various aspects of their operations. Any company that wants to stay competitive in today's market must meet customers where and when they need it. Insurance's digital transformation, powered by artificial intelligence, machine learning, predictive analytics, mobile services, live chat, and other technologies, enables insurers to do just that and will continue to change the industry for years.


Insurance Companies to Look at Value Chain through a Digital Lens:


Gain First-Mover Advantage:

Product introduction to gain a potentially sustainable competitive advantage. To achieve the first-mover advantage, the insurer should have two crucial capabilities: the ability to pinpoint unmet customer needs to guide product development and quickly adapt existing products to market forces.


Reduce IT costs to fund innovation:

When insurance companies refactor monolithic applications into modular micro services, application maintenance costs are reduced.


Grow revenue by differentiating the customer journey:

Electronic document capture and processing, robotic process automation (RPA), and robo-advisors improve serviceability and help businesses gain a competitive advantage.

Despite market participants' claims that the insurance industry was not an early adopter of digital transformation, new players, business models, and demanding customers are forcing the industry to embrace digital technologies. As a result, the global insurance market is expected to grow by 45% between 2022 and 2025.

Modern digital engineering does not occur in a vacuum; new products must be compatible with existing technologies and processes. Ascertain that the development team understands legacy insurance applications and the data required to integrate them with new, digitally engineered products.

Spotlight

AFL Insurance Brokers Ltd

AFL is a privately owned Lloyd’s broker at the cutting edge of global insurance innovation, bringing new thinking to emerging risks. Founded in 2008, AFL has emerged as an independent centre of excellence for international insurance; a truly capable and professional partner for global insurance brokers and discerning risk managers. We work alongside our clients throughout the world to ensure not only that precise, innovative risk management is delivered, but that all parties involved are happy with the value exchange they’ve experienced.

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INSURANCE TECHNOLOGY

5 Essential Features of Policy Management Tools

Article | May 20, 2022

The worldwide marketplace is undergoing a host of structural changes and insurance companies are consistently working to capitalize on them. The past few years posed a number of new challenges. For an industry whose primary promise is to “be there when customers need us,” delivering top-notch timely services is not only crucial for business continuity but the most urgent goal. Inspiring trust through every process of the policy lifecycle is a significant factor for insurers to be able to maintain goodwill in the market. Recent pressures proved that the industry needs a systemic metamorphosis and digital solutions may be able to provide them. This is also why many industries are jumping on the bandwagon of digital transformation and insurance is no different. With a barrage of new technologies, solutions and software, it has become easier to automate processes and eliminate inefficiencies that hamper day-to-day-operations. One such area of transformation is insurance policy management. Forward-looking insurers today, can start by rethinking their policy management framework. The Importance of Automated Policy Management Simplifying all internal processes is a priority for many insurance providers worldwide. Much of the insurer’s business outcome hinges on streamlined workflows, seamless document management and effective use of different tools. In policy management, mitigating risk is another significant aspect that impacts the bottom line. Today, insurers are heavily investing in new technologies like artificial intelligence and machine learning, robotic process automation, data analytics and much more. Policy management entails the comprehensive process of administering policies. From pre-sale to renewal to claims, at every stage of the policy lifecycle, insurers must ensure a smooth process at every stage. Some of the stages of policy management that can be enhanced by using automated policy management tools which include: Member services Loss mitigation Risk assessment Claims processing Policy issuance Policy renewal Policy cancellation Compliance It’s clear that insurance policy administration system (pas) encompasses all the main business processes of an insurance company and the importance of policy management is enough to invest in high-quality solutions that span the policy lifecycle. The Must-Haves of Policy Management Software A smart insurance policy management simplifies the process for both the insurer and the insured. For insurers, it should be able to optimize resources and save time in administering policies. For example, life insurance policy management system can help a provider scale their operation, introduce flexibility and administrative simplicity. Here are the components of a policy management solution that is a must-have for every insurance provider. For the insured, the solution can help organizations not only provide a smooth experience Policy Issuance, Update and Cancellation The most significant must have that an effective policy management solution should have, is the ability to digitalize every aspect of policy administration. This includes being able to generate documentation, centralize records and oversee all operations across the policy lifecycle. For instance, everything should be synced so that any updates are made universally across all documents. This eliminates doing manual changes to all the records. In addition, with technologies like robotic process automation (RPA), repetitive tasks can be automated and reduce the time it takes to process documentation. Underwriting Underwriting is a process where individuals or firms take financial risk for a fee. In insurance, underwriters are responsible for evaluating the degree of risk to the insurer’s business. It is in essence a manual process that comprises extensive research and assessment of the prospective policy holder. For instance, medical underwriting consisted of ascertaining the charges to levy or even whether to provider coverage to them based on an applicant’s health condition. Even though underwriting is a time-consuming process, it doesn’t have to be tedious. Underwriters need to access data that is spread across a range of different platforms and sources. Automated policy management enables organizations to accelerate the process of data collection and collation. This is why, automation in underwriting functionalities is one of the most important features of a policy management software that is a must-have. Estimates and Quotes Holistic policy management tools are incomplete without quote estimate capabilities. Quoting allows insurers to generate leads. With automated quoting features, insurers can provide estimates without having to directly contact customers, saving time and money in cold calling. In addition, it helps insurers to gather the information they need to then target their leads and tailor solutions that meet consumer expectations. Quality policy management systems include these capabilities. They work by letting customer input their information and receive a quote estimate based on it. For insurers, in addition to providing leads, it lets them engage customers from the start itself. Policy Renewal Renewals is a critical stage in the policy lifecycle. Overseeing renewals and reducing customer churn is something every insurer must prioritize. Renewals handling amplifies the importance of policy management software that offer renewals management tools. Renewals management features allow insurers to alert policy holders about the ending of their coverage and provides a timely reminder to renew it. Since renewals management tools offer ready information for insurers to access, customers need to update fewer fields. It not only reduces customer churn but contributes to an easy, fast, and customer-friendly process. Claims Processing Claims processing is when an insurer reviews a claim process to verify and authenticate the claim made by the policy holder. As a core business process, claims management and processing needs intelligent systemization. Insurance policy management tools that integrate claims processing will enable insurers to automate the settlement process. Modern policy management tools sync different systems so insurers have a centralized database and can simplify tasks like assigning claims, detecting fraud, record payments issued and automatically generate reports. Regulations and Compliance Insurance is a heavily regulated industry and insurers must keep up with the many compliance and location-specific regulations to avoid hefty fines. Regulatory policies are also subject to change and can often realign processes to protect consumers. This may sometimes cause insurers financially. However, complying with new regulations is a business necessity and policy compliance management solutions help immensely. Insurers must be able to monitor any changes in global and local policies or keep an eye out for announcements regarding the change in rates or regulations. Many insurers have a team to do this but maintaining a team is costly and causes operational complexities. Modern policy management tools offer the automation capabilities that eliminate the need for extensive overhaul or insurers to keep up with new regulations. These policy compliance management tools help in detecting breach and minimizing it. They also enable better resource allocation as teams no longer need to monitor new and upcoming regulations and plan for implementing the change. Customer Support Customer support is one of the most critical aspects of policy management. Beyond software and applications, being able to meet your customers’ demands, address their concerns throughout the customer lifecycle is vital in order to meet business objectives on time. With digitalization transcending platforms and devices, policy management tools today need to be able to keep up to meet customer demands. This is why mobile-ready policy management solutions are a must. They allow insurers to respond to customers quickly and keep channels of communication open and flowing. In addition, features like quoting estimates and claims processing that accelerate policy administration and management in a streamlined manner are bound to keep customers happy and reduce churn. Some policy management tools come with marketing automation capabilities as well as a CRM that lets insurers deliver a great experience right from buying decision to ongoing support. Conclusion There is no denying that digitalization is the future and insurers need to be ready to adapt to new challenges and evolving demands from consumers. Policy management tools not only enable insurers to overhaul their core process but simplify it and eliminate operational inefficiencies. The importance of policy management cannot be understated. Age-old challenges and bottlenecks of managing millions of policies can be mitigated with comprehensive policy management solutions. The above components are the most critical process your organization should look to simplify. These essential features ensure you are able to optimize resources, improve operational efficiencies, streamline processes and translate all these into enhanced customer experiences. Frequently Asked Questions How does insurance policy management differ from other policy management tools? Insurance policy management is a specialized solution that caters to insurance companies and enables them to manage renewals, claims, underwriting and all other processes associated with managing an insurance policy for their customers. Other policy management tools help organizations frame policies and management internal policy documents. What is an insurance policy lifecycle? An insurance policy lifecycle starts with generating a quote for the customer, onboarding the customer’s application, and finally setting the payment of premiums and renewals. When a policyholder claims insurance, the insurer has to process the claim, verify its authenticity then accept the claim fully or partially or reject it. What are the ways the insured can choose to pay for the insurance policy? The insured can either pay a lump sum amount or choose to pay monthly, yearly or quarterly. These payments are called premiums and are calculated based on certain condition set by the insurer.

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INSURANCE TECHNOLOGY

How InsurTech-Insurance Partnership Delivers New Product Innovations

Article | July 19, 2022

In 2019, InsurTech funding reached $6 billion, acknowledging the pace that technology can bring to overcome the age-old Insurance problems, the State of AI in Insurance 2020 says. While Incumbents are known for their core competencies in end-to-end insurance processes (from underwriting to claims settlement and reinsurance), InsurTechs are enticing millennials with fully digital innovative products and solutions.

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INSURANCE TECHNOLOGY

The role of AI in enhancing claims experience for Insurance customers

Article | July 13, 2022

Insurance customers are most vulnerable when they file a claim. Be it life or general insurance, claims are filed in distress. This is also a critical moment for Insurers. The claims experience they deliver determines customer loyalty, which also influences referral customers in the long run. In the Insurance industry, where products and pricing among the competitors are almost the same, customer experience becomes the main differentiator.

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5 Deep Learning Use Cases for the Insurance Industry

Article | February 11, 2020

In 2010, with the launch of the Image Net Competition, a vast dataset of about 14 million labeled images was made open-source to inspire the development of cutting-edge image classifiers. This was when Deep Learning technology got it’s a real breakthrough and since then there’s been no looking back for advancements in this field.

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Spotlight

AFL Insurance Brokers Ltd

AFL is a privately owned Lloyd’s broker at the cutting edge of global insurance innovation, bringing new thinking to emerging risks. Founded in 2008, AFL has emerged as an independent centre of excellence for international insurance; a truly capable and professional partner for global insurance brokers and discerning risk managers. We work alongside our clients throughout the world to ensure not only that precise, innovative risk management is delivered, but that all parties involved are happy with the value exchange they’ve experienced.

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CORE INSURANCE,INSURANCE TECHNOLOGY

Majesco Launches New Website

Majesco | December 05, 2022

Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the launch of its new and completely redesigned website bringing an elevated digital experience to its visitors. The new website comes after the launch of the new Majesco brand and is a continuation of Majesco’s commitment to providing the market and customer community with an easy, personalized and tailored experience. “While today’s dynamic market changes have impacted organizations across all industries, our financial stability and steady growth has allowed us to continue to execute on our strategy and invest in areas that matter most to our customers, partners and employees, We are confident that this enhanced digital experience, will make it easier and faster for our community to interact and engage with the Majesco team.” -Adam Elster, CEO of Majesco Majesco’s new website has been carefully designed and curated with resources that help visitors promptly gain knowledge about Majesco’s solutions, partnerships, customer success, and thought leadership. The new site navigation enables visitors to create their own journey as they move through the website helping them access what they need within just a few clicks. For those looking to join the Majesco team, visitors can check out the comprehensive career pages that provide a glimpse into life at Majesco, benefits of joining the team, as well as a complete list of current job openings. We have taken the time to make sure we delivered a website that not only reflects our new brand identity, but also provides a first-class experience to our visitors, The internet has changed the way we communicate and has become the standard for those seeking information about a topic or product. Our new website offers valuable insight and thought leadership – bringing validation and clarity to the changes and challenges the insurance industry is faced with and how our solutions meet them. It makes it easier than ever to find information about our broad portfolio of next-gen insurance solutions for the P&C and L&AH markets, and how Majesco can accelerate their strategies and priorities,says Denise Garth, Chief Strategy Officer. About Majesco Majesco is the partner P&C and L&AH insurers choose to create and deliver outstanding experiences for customers. We combine our technology and insurance experience to anticipate what is next, without losing sight of what is important now. Over 350 insurers, from greenfields and startups to some of the world’s largest insurers, rely on Majesco’s SaaS platforms solutions of core, data, analytics, digital, and rich ecosystem of partners to create their next now. As an industry leader, we do not believe in managing risk by avoiding change. We embrace change, even cause it, to get and stay ahead of risk. With 900+ successful implementations we are uniquely qualified to bridge the gap between a traditional insurance industry approach and a pure digital mindset. We give customers the confidence to decide, the products to perform, and the follow-through to execute.

Read More

CORE INSURANCE,INSURANCE TECHNOLOGY

Inszone Insurance Services Completes Acquisition of Kirsch Insurance Group

Inszone | December 05, 2022

Inszone Insurance Services, a rapidly growing, national provider of benefits, personal and commercial lines insurance, announced today the acquisition of Kirsch Insurance Group. Marlin Kirsch founded Kirsch Insurance Group in 2004. A Denver-based brokerage that specializes in Medicare Health Plans, Kirsch Insurance has focused on helping their clients in finding the best program for their specific needs. Their comprehensive grasp of all Medicare Plans and Options has helped them to assist clients in being better prepared for the future. “After years in the company, we've acquired a reputation for educating consumers in an easy-to-understand manner, so they can readily grasp the frequently perplexing concepts of the 'Medicare Maze’,” - Marlin Kirsch, the agency's prior owner The service that Kirsch Insurance clients are accustomed to will continue uninterrupted under the Inszone Insurance brand. Chris Walters, CEO of Inszone Insurance, said, Colorado has been a great source of growth for us; the acquisition of Kirsch Insurance is another milestone in our expansion in the state as we move toward our goal of establishing Inszone as Colorado's go-to insurance agency. The acquisition of Kirsch Insurance is part of the continued expansion and growth by Inszone Insurance and becomes the 9th acquisition so far in the Colorado area. Inszone Insurance is expected to announce several acquisitions as well as new locations in the upcoming months. About Inszone: Founded in 2002 and headquartered in Sacramento, California, Inszone is a full-service insurance brokerage firm which provides a broad array of property & casualty insurance, along with employee benefits solutions. With a strong, experienced management team, Inszone continues to grow organically, as well as through acquisitions. With 33 locations across California, Arizona, Nevada, Utah, Colorado, Missouri, Texas and Illinois, the company is looking to further expand throughout the United States.

Read More

WORKERS COMPENSATION,HEALTH INSURANCE

New York Life Partners with Human API to Further Support Consumers in the Life Insurance Purchase Experience

New York Life | December 07, 2022

New York Life, America’s largest mutual life insurer1, today announced a strategic partnership with Human API, a leading provider of digital health data innovation and solutions, to continue to streamline and simplify the life insurance purchase experience. Powered by Human API’s Health Intelligence Platform, New York Life, with applicant consent and in full compliance with HIPAA regulations, will retrieve consumer mediated electronic health records (EHRs) in the form of normalized digital health data. Replacing traditional, manual methods of obtaining medical records with more easily accessible digital forms brings additional speed, transparency, and efficiency to the life insurance underwriting process. With this partnership, New York Life will expand its access to machine-readable health data which will further advance the company’s efforts to improve the consumer experience when purchasing life insurance. “New York Life’s efforts to increasingly remove friction from the life insurance purchase process over the last several years have involved achievements in digitizing, improving data resources, and automating, This innovative work in the electronic health record space, including our latest partnership with Human API, is an important part of New York Life’s overall mission to enable consumers to obtain the financial security they need in a faster and more efficient way.” -Ari Roy, head of New York Life’s Strategic Solutions Group Like New York Life, we at Human API understand that digital health data is the future of the life insurance industry and believe strongly in the opportunities, actionable insights, and efficiencies that come from its implementation, We will continue to innovate to bring our partners the foremost solutions in health data for underwriting and customer experience transformations,said Andrei Pop, Chief Executive Officer of Human API. About New York Life New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies. About Human API Human API’s Health Intelligence Platform connects and converts health data into actionable intelligence that accelerates underwriting, improves placement rates, and creates better customer experiences. The company’s platform is powered by a robust and comprehensive data network which includes access to electronic health records (EHR) networks, health information exchanges (HIEs), patient portals, and traditional APS retrieval partners. Coupled with smart evidence orchestration capabilities that optimize for the best data retrieval paths and a reporting engine that presents useful information to underwriters at the right time, Human API’s solution is helping leading carriers easily access and use health data to transform underwriting and customer experiences.

Read More

CORE INSURANCE,INSURANCE TECHNOLOGY

Majesco Launches New Website

Majesco | December 05, 2022

Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the launch of its new and completely redesigned website bringing an elevated digital experience to its visitors. The new website comes after the launch of the new Majesco brand and is a continuation of Majesco’s commitment to providing the market and customer community with an easy, personalized and tailored experience. “While today’s dynamic market changes have impacted organizations across all industries, our financial stability and steady growth has allowed us to continue to execute on our strategy and invest in areas that matter most to our customers, partners and employees, We are confident that this enhanced digital experience, will make it easier and faster for our community to interact and engage with the Majesco team.” -Adam Elster, CEO of Majesco Majesco’s new website has been carefully designed and curated with resources that help visitors promptly gain knowledge about Majesco’s solutions, partnerships, customer success, and thought leadership. The new site navigation enables visitors to create their own journey as they move through the website helping them access what they need within just a few clicks. For those looking to join the Majesco team, visitors can check out the comprehensive career pages that provide a glimpse into life at Majesco, benefits of joining the team, as well as a complete list of current job openings. We have taken the time to make sure we delivered a website that not only reflects our new brand identity, but also provides a first-class experience to our visitors, The internet has changed the way we communicate and has become the standard for those seeking information about a topic or product. Our new website offers valuable insight and thought leadership – bringing validation and clarity to the changes and challenges the insurance industry is faced with and how our solutions meet them. It makes it easier than ever to find information about our broad portfolio of next-gen insurance solutions for the P&C and L&AH markets, and how Majesco can accelerate their strategies and priorities,says Denise Garth, Chief Strategy Officer. About Majesco Majesco is the partner P&C and L&AH insurers choose to create and deliver outstanding experiences for customers. We combine our technology and insurance experience to anticipate what is next, without losing sight of what is important now. Over 350 insurers, from greenfields and startups to some of the world’s largest insurers, rely on Majesco’s SaaS platforms solutions of core, data, analytics, digital, and rich ecosystem of partners to create their next now. As an industry leader, we do not believe in managing risk by avoiding change. We embrace change, even cause it, to get and stay ahead of risk. With 900+ successful implementations we are uniquely qualified to bridge the gap between a traditional insurance industry approach and a pure digital mindset. We give customers the confidence to decide, the products to perform, and the follow-through to execute.

Read More

CORE INSURANCE,INSURANCE TECHNOLOGY

Inszone Insurance Services Completes Acquisition of Kirsch Insurance Group

Inszone | December 05, 2022

Inszone Insurance Services, a rapidly growing, national provider of benefits, personal and commercial lines insurance, announced today the acquisition of Kirsch Insurance Group. Marlin Kirsch founded Kirsch Insurance Group in 2004. A Denver-based brokerage that specializes in Medicare Health Plans, Kirsch Insurance has focused on helping their clients in finding the best program for their specific needs. Their comprehensive grasp of all Medicare Plans and Options has helped them to assist clients in being better prepared for the future. “After years in the company, we've acquired a reputation for educating consumers in an easy-to-understand manner, so they can readily grasp the frequently perplexing concepts of the 'Medicare Maze’,” - Marlin Kirsch, the agency's prior owner The service that Kirsch Insurance clients are accustomed to will continue uninterrupted under the Inszone Insurance brand. Chris Walters, CEO of Inszone Insurance, said, Colorado has been a great source of growth for us; the acquisition of Kirsch Insurance is another milestone in our expansion in the state as we move toward our goal of establishing Inszone as Colorado's go-to insurance agency. The acquisition of Kirsch Insurance is part of the continued expansion and growth by Inszone Insurance and becomes the 9th acquisition so far in the Colorado area. Inszone Insurance is expected to announce several acquisitions as well as new locations in the upcoming months. About Inszone: Founded in 2002 and headquartered in Sacramento, California, Inszone is a full-service insurance brokerage firm which provides a broad array of property & casualty insurance, along with employee benefits solutions. With a strong, experienced management team, Inszone continues to grow organically, as well as through acquisitions. With 33 locations across California, Arizona, Nevada, Utah, Colorado, Missouri, Texas and Illinois, the company is looking to further expand throughout the United States.

Read More

WORKERS COMPENSATION,HEALTH INSURANCE

New York Life Partners with Human API to Further Support Consumers in the Life Insurance Purchase Experience

New York Life | December 07, 2022

New York Life, America’s largest mutual life insurer1, today announced a strategic partnership with Human API, a leading provider of digital health data innovation and solutions, to continue to streamline and simplify the life insurance purchase experience. Powered by Human API’s Health Intelligence Platform, New York Life, with applicant consent and in full compliance with HIPAA regulations, will retrieve consumer mediated electronic health records (EHRs) in the form of normalized digital health data. Replacing traditional, manual methods of obtaining medical records with more easily accessible digital forms brings additional speed, transparency, and efficiency to the life insurance underwriting process. With this partnership, New York Life will expand its access to machine-readable health data which will further advance the company’s efforts to improve the consumer experience when purchasing life insurance. “New York Life’s efforts to increasingly remove friction from the life insurance purchase process over the last several years have involved achievements in digitizing, improving data resources, and automating, This innovative work in the electronic health record space, including our latest partnership with Human API, is an important part of New York Life’s overall mission to enable consumers to obtain the financial security they need in a faster and more efficient way.” -Ari Roy, head of New York Life’s Strategic Solutions Group Like New York Life, we at Human API understand that digital health data is the future of the life insurance industry and believe strongly in the opportunities, actionable insights, and efficiencies that come from its implementation, We will continue to innovate to bring our partners the foremost solutions in health data for underwriting and customer experience transformations,said Andrei Pop, Chief Executive Officer of Human API. About New York Life New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies. About Human API Human API’s Health Intelligence Platform connects and converts health data into actionable intelligence that accelerates underwriting, improves placement rates, and creates better customer experiences. The company’s platform is powered by a robust and comprehensive data network which includes access to electronic health records (EHR) networks, health information exchanges (HIEs), patient portals, and traditional APS retrieval partners. Coupled with smart evidence orchestration capabilities that optimize for the best data retrieval paths and a reporting engine that presents useful information to underwriters at the right time, Human API’s solution is helping leading carriers easily access and use health data to transform underwriting and customer experiences.

Read More

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