VIVEK GUJRAL

Chief Tech­nol­ogy Of­fi­cer

Digital Insurance - - STRATEGIES - CON­TACT IN­FOR­MA­TION OneShield Soft­ware 62 For­est St. Marl­bor­ough, MA 01752-3028 USA email: info@oneshield.com phone (toll-free): 888.663.2565 phone: 774.348.1000

How should in­sur­ers with highly cus­tom­ized legacy sys­tems go about a dig­i­tal up­grade? What ben­e­fits can they ex­pect?

A ‘dig­i­tal up­grade’ con­sists of two ac­tiv­i­ties that need to hap­pen in tan­dem - one is cus­tomer ac­qui­si­tion through dig­i­tal means, and the se­cond, and more im­por­tant, is engagement with the cus­tomer through dig­i­tal means. The se­cond is more im­por­tant to get right, be­cause if one ac­quires a cus­tomer through a high-qual­ity dig­i­tal process, the cus­tomer will have the same ex­pec­ta­tion from the in­surer for in­ter­ac­tions go­ing for­ward. And there is noth­ing worse for re­ten­tion than un­met ex­pec­ta­tions. The ‘how’ to get there es­sen­tially de­pends on the abil­ity to cre­ate a com­pre­hen­sive and timely view of the cus­tomer from the legacy sys­tems. This can be done either by re­plac­ing the core sys­tems them­selves, or by a com­bi­na­tion of re­tool­ing and a CRM sys­tem with some se­ri­ous in­sur­ance chops. The ben­e­fits that ac­crue can broadly be clas­si­fied un­der bet­ter re­ten­tion, lower op­er­at­ing costs and lower cus­tomer ac­qui­si­tion costs.

Why does in­te­grat­ing an in­surer’s un­der­writ­ing, claims and pol­icy ad­min sys­tems lead to greater ef­fi­cien­cies and bet­ter cus­tomer ser­vice?

Quite sim­ply be­cause get­ting the in­for­ma­tion one needs for a trans­ac­tion or de­ci­sion be­comes much more ac­cu­rate, eas­ier and cheaper. By con­trast, if you’re re­ly­ing on down­stream in­te­gra­tion, for in­stance via a ware­house or ODS, it is much more painful (and ex­pen­sive) to have all the in­for­ma­tion that you need where and when you need it. For in­stance, if an un­der­writer is re­view­ing a new pol­icy ap­pli­ca­tion, it is use­ful for her to know that the in­di­vid­ual’s EFT pay­ment method was re­cently re­jected, and has a claim that got re­ferred to the SIU. Close in­te­gra­tion also en­ables one to make cus­tomer in­ter­ac­tions more fruit­ful - re­mind­ing a cus­tomer that called or e-mailed about a bill that he also owes the in­surer an elec­tri­cal update cer­tifi­cate makes the cus­tomer in­ter­ac­tion with the in­surer one be­tween two in­di­vid­u­als, not be­tween an in­di­vid­ual and an en­tity where the left hand does not know what the right hand is do­ing.

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