Simplify, Automate and Be Efficient: The Answer to the Insurance Challenges of Tomorrow
Simplify, automate and be efficient: The answer to the insurance challenges of tomorrow
It is no news that the insurance panorama is to be changing at an expeditious pace. New challenges emerge globally and so must companies within the industry bring out solutions that adapt to these new circumstances.
In our perspective, six are the global challenges that will constantly turn insurance upside down: empowered personas, health-first, a green generation, technology everywhere, global rules and unexpected awareness. These, added to the industry’s own challenges of seeking for new margins, becoming as a Service companies and battling fraud, are putting insurers at the edge where decision-making has nowhere to hide.
In our 2022 Insurance Vision, we give insurers 10 actions that allow them to respond to these demands. Among them, it is to focus on efficiency and simplification. As insurers were used to have a decent margin, the processes run on costly infrastructure and systems that were made to support growth, process efficiency and high user experience was seldom a priority. This certainly ends up in dwindling asset returns and high costs, where insurance companies are already (or will soon be) facing important losses.
To escape from these outcomes, both efficiency and simplification must be key objectives that insurance companies need to keep in mind in order not only to function in an agile way internally, but also externally, in the way in which they offer products and services to their clients in a simple, direct and transparent way. Therefore, insurers should ensure that they adequate both their technological and economic resources for a long-distance race.
Our expertise in BPaaS and our high-value BPO capabilities give us the authority to apply innovation (automation, conversational speech, among others), to decrease cost while increasing the user experience.
The first steps towards this efficiency and simplification are guaranteed with our Global Insurance Digital Platform (GIDP). From NTT DATA, we have built a tool based on cutting-edge technologies and an ecosystem of partners that helps insurers simplify their operations and provide them with the ability to quickly launch new products, proactively use data, reduce operational costs, mitigate risk and remain competitive.
GIDP consists of the set of pre-connected leading technology solutions provided by partners that span the full value chain of a Life Insurer. Thanks to the use of automation and innovation, GIDP can deliver you a very appealing cost-base which makes it the perfect solution to manage your activity, either if it is Life Closed Book or if it comes down to growing your business.
Likewise, in an era in which low interest rates are putting the profitability of insurers under pressure, companies should use smartly their available budgets. Growth initiatives such as product innovation and customer experience improvements require significant investing while in reality the majority of the budgets and the usage of scarce resources are spent on simply maintaining legacy systems. The time, then, has come to get rid of non-performing assets. GIDP provides an end to end solution for your closed books or enable to evolve your monolithical architecture to a modern component based architecture, whereby you are able to combine “addressing the problems of the past’ with realizing your growth initiatives”.
When referring to Life Closed Books, market platforms use to be more idiosyncratic, with processes that require a separate implementation every time, concurring in time and so in costs. With GIDP, the insurance company builds on top of the core system, having innovation at the front-end and the customer experience piece regardless of what the core system is and who is running it.
Implementing a new system allow insurers to rely on competitive infrastructures, assure better compliance, address the competence risk and provide process efficiency. Additionally, implementing GIDP within their system, can go hand in hand with the insurer’s portfolio rationalization, which will lower down maintenance costs and improve productivity.
All this grants insurers with the possibility to support themselves with market solutions that allow them to be more agile, and so more efficient, in the intermediate processes that are time consuming and effort demanding and so focus in what really matters: offering real value to consumers.