Digital Transformation of Leading Insurer’s Procure-to-Pay Function

| January 10, 2019

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A digitally capable Procure-to-Pay (P2P) function offers companies the advantages of choosing the right suppliers, negotiating the best contracts and minimizing spend on categories with maximum efficiencies.

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Zander Insurance

Zander Insurance Group®, Dave Ramsey's choice and your resource for top quality insurance programs and services. Our website is the only site in the country offering instant online comparison rates for term life, disability, Identity Theft Protection, health and auto insurance. Zander Insurance has been serving its customers for over 80 years. As one of this country's largest independent insurance brokerages, we are here to provide you convenient and informative access to the insurance programs you need. Don't hesitate to call us...we look forward to being of service to you.

OTHER ARTICLES

IoT Combined With AI? A Revolution

Article | February 17, 2020

Data is the foundation of insurance, and two emerging technologies, the Internet of Things (IoT, and artificial intelligence (AI), are making that foundation more useful than ever. IoT allows internet-connected devices to send and receive real-time data. Insurers are increasingly using IoT data to streamline operations, improve customer engagement, offer discounts for and encourage healthy behavior such as safe driving and regular exercise, calculate risks more accurately, boost competitive advantage and streamline compliance.

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Will your insurance IT investments pay off?

Article | April 12, 2021

Automated claims processing, price comparison platforms, mobile bill paying—these are just some of the digital services that insurance customers expect and insurers want to provide. As the demand for digital skyrockets, so does the need for insurers to invest in IT. In the past seven years, the share of IT in total operating costs of property-and-casualty (P&C) insurers increased 22 percent. The rise of digital means technology is no longer a cost center. Rather, it is an asset that, if managed well, can increase growth and profitability. But do these IT investments pay off? As the COVID-19 pandemic exacerbates already increasing cost pressures, insurers’ IT budgets are under scrutiny; they want to see the business impact of their IT investments. Insurers with targeted IT investments achieve better growth and performance Data from McKinsey’s Insurance 360° benchmarking survey provide strong evidence of the positive business impact of targeted IT investments. In fact, insurers that invest more in technology outpace competitors that don’t pursue targeted investments in business measures such as gross written premium (GWP) growth, return to shareholders, and expense and loss ratio (exhibit). As an example, in life insurance, companies that invested more in IT saw a greater reduction in expense ratios (by 2.0 percentage points) and higher returns on technical reserves2 (1.7 percentage points) when compared with insurers with lower IT investments. Insurers achieved these outcomes within three to five years of making their investments. For P&C insurers, those with high IT investments achieved approximately twice the top-line GWP growth of low IT investors. High IT investments also produced a greater reduction in combined ratios when compared with those with low IT investment. Four areas for targeted IT investment So what kinds of technology investments can help insurers achieve growth and improve productivity and performance? Investments in four areas are critical: Marketing and sales: Marketing technology solutions can increase sales and processing efficiency, improve the quality of core customer-facing processes such as policy inquiries and policy applications, and improve customers’ overall experiences. McKinsey’s Insurance 360° benchmarking data show that tech investments in this category can facilitate top-line growth for P&C insurers by up to 20–40 percent; for life insurers, that growth could be 10–25 percent over a three- to five-year period. Underwriting and pricing: Automated underwriting fraud detection can improve the likelihood that insurers correctly identify fraud and set accurate prices. A pricing tool kit that analyzes pricing across competitors and enables a flexible, more segmented market versus technical pricing further improves profit margins. Insurers that deploy these and other product, pricing, and underwriting technologies have seen improvements in their profit margins by 10–15 percent in P&C insurance and 3–5 percent in life insurance. Policy servicing: Workflow automation, artificial intelligence–based decision support, and user experience technologies in policy servicing and within IT can improve the customer self-service experience and automate back-office processes, thus reducing IT and operations expenses. And state-of-the-art self-servicing options will reduce processing times and even improve customer experience. An analysis of programs for large-scale insurance IT modernization finds that insurers that deploy these and other product, pricing, and underwriting technologies have seen improvements in their profit margins by 5–10 percent in P&C insurance and 10–15 percent in life insurance. Claims: P&C insurers can use automated case processing—machine-learning technology trained to process basic claims cases—to segment more complex cases and significantly improve claims accuracy. Combined with better partner integration and steering technologies embedded in a transformation of the claims operating model, such technologies can help P&C insurers improve profit margins by 25–40 percent, according to McKinsey analysis of large-scale IT modernization programs. To realize the full value of IT investments, insurers must strategically allocate their resources and view tech as an asset, not a tool.

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The Impact of InsurTech on the Property/Casualty Sector

Article | February 20, 2020

The latest figures from a Willis Towers Watson report shows that investment in insurance technology, or InsurTech, reached an all-time high in 2019 at $6.37 billion, with funding in the Property/Casualty sector representing the lion’s share over its Life/Health counterpart. InsurTech is designed to disrupt and change the way the insurance distribution system conducts business, upping the game in delivering tailored product lines, reducing friction in client transactions, providing a better on-line customer experience, and assessing risk scenarios to provide new offerings.

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6 reasons to take out landlord insurance

Article | March 9, 2020

Making the leap from homeowner to property investor comes with a unique set of challenges and opportunities. While many landlords try to minimize their outlay and maximize their return – and understandably so – insurance is the one essential expense you simply can’t afford to scrimp on. It’s so important that you are adequately covered with suitable landlord insurance, so that the following scenarios don’t cripple you financially…

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Spotlight

Zander Insurance

Zander Insurance Group®, Dave Ramsey's choice and your resource for top quality insurance programs and services. Our website is the only site in the country offering instant online comparison rates for term life, disability, Identity Theft Protection, health and auto insurance. Zander Insurance has been serving its customers for over 80 years. As one of this country's largest independent insurance brokerages, we are here to provide you convenient and informative access to the insurance programs you need. Don't hesitate to call us...we look forward to being of service to you.

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