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Digital Transformation in Insurance – a race to the Moon

8/8/2022

Is the Insurance industry the only consumer-facing financial service worldwide not to fully embrace today's digital and mobile reality? Just look at how Fintech has changed banking, and financial services have become streamlined and more accessible worldwide.

Reluctantly incumbent insurers, until recently, have stuck to the traditional ways of handling insurers' claims and doing business. Adopting new practices was hard for many Insurers due to outdated legacy infrastructure and data silos. The outbreak of COVID-19 has affected insurers in every possible way – both good and bad.

Today, lessons have been learned, and a new "space race" has already begun- says Maciej Bud-Gusaim - CEO of Efinity Insurance Group. Over the coming years, an armada of insurtech hopefuls will join the hunt for a piece of the USD 114,489 million 2030 Insurance market.

Integrating digital tools into every aspect of the business makes meeting current and potential client's needs and expectations much more effortless. Consumers expect better integration across physical and digital channels, getting what they need quickly and easily, no matter which channel they use. Digital technology, analytics and mobile connectivity also enable new models for insurance distribution, boosting the scale and reach of doing business. Think of the time an agent or a broker can save by automating all the small, repetitive, simple tasks, like sending the offer. Same with insurer carriers. For example, a New York-based insurance company – Lemonade, claims that thanks to its AI solutions, the company can resolve 30% of claims instantly, handling a claim in 3 seconds. However, upgrading the technology behind already existing legacy systems is only a part of the digital transformation process.

The whole company needs to be ready to change its ways of thinking and supporting frameworks. Change must come from the top, with IT following the lead to integrating new tools to help meet the business objectives. Among the most wanted are the digital-based distribution models, AI and Marketing Automation, and IoT and…the list is quite long. The C-level executive must embrace an agile framework and prepare their business for constant change to manage a true shift to digital. Remember, it's a race to the moon.
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Source: Efinity Insurance Group
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Efinity Insurance Group is an Insurtech Powerhouse empowering radical insurance innovation.