Which will you be? Dig­i­tal hunter or dig­i­tal prey?

Digital Insurance - - CLAIMS - Katie Hanna, Global Pro­grams Spe­cial­ist, In­sur­ance, Hy­land IF YOU’D LIKE TO KNOW MORE, PLEASE CON­TACT US: Hy­land (216) 379-7698 | OnBase.com/In­sur­ance

“By 2020, ev­ery busi­ness will have become ei­ther a dig­i­tal preda­tor or dig­i­tal prey,” says one For­rester an­a­lyst. That must have sounded like a clarion call to in­sur­ance com­pa­nies. More than 85 per­cent of busi­ness ex­ec­u­tives are ex­pected to al­lo­cate up to a quar­ter of their to­tal bud­get to dig­i­tal trans­for­ma­tion in 2018.

It seems no one wants to be dig­i­tal prey.

But many in­sur­ance or­ga­ni­za­tions still stum­ble when try­ing to im­ple­ment their dig­i­tal vi­sion. They find they have to con­tend with mas­sive amounts of data, re­gard­less of their com­pany’s size, the mar­ket they serve or the in­tri­cacy of their dig­i­tal strat­egy.

What’s hold­ing them up?

The dig­i­tal trans­for­ma­tion hur­dle: Legacy sys­tems

The hur­dle? Legacy sys­tems. Out­dated, patched-to­gether and slow, these highly siloed sys­tems de­liver only a par­tial view of in­for­ma­tion. It is dif­fi­cult to pro­vide in­sureds with the best pos­si­ble ex­pe­ri­ence when you are only see­ing half the cus­tomer in­for­ma­tion you need to open a new pol­icy, process a claim or pay a com­mis­sion.

In­sur­ers also have a tremen­dous amount of con­tent, pro­cesses and case­work man­aged by niche or out­dated ap­pli­ca­tions out­side of the core. Most of this con­tent, gen­er­ated ex­ter­nally, comes into the or­ga­ni­za­tion through the mail­room, an in­di­vid­ual’s email in­box, mo­bile de­vices, fax, a web-based por­tal or a se­cure elec­tronic batch of doc­u­ments. Add to that the in­ter­nally gen­er­ated con­tent cre­ated in the con­text of rou­tine busi­ness pro­cesses, and you start to see why legacy sys­tems can become un­wieldy and un­work­able solutions.

If an in­surer is stum­bling with the amount of in­for­ma­tion they must deal with to­day, con­sider a world in which sen­sors em­bed­ded in cars, build­ings, ap­pli­ances and wear­able de­vices de­liver real-time data. Pho­tos from drones, sta­tus re­ports from so­cial me­dia, and things still unimag­ined.

How are in­sur­ers go­ing to cap­ture, share, an­a­lyze and work with all of that in­for­ma­tion?

Not by patch­ing to­gether sys­tems never in­tended to in­te­grate. That wastes time, loses money and sti­fles in­no­va­tion.

Legacy claims sys­tems fall even far­ther be­hind

Nearly 70 per­cent of all claims ac­tiv­ity is still man­ual, ac­cord­ing to McKin­sey & Com­pany. Man­ual sys­tems are fraught with chal­lenges, from the snail’s pace with which they move to the propen­sity for hu­man gaffes and com­pli­ance errors. The claims process of the fu­ture is ra­tio­nal­ized and au­to­mated, with a laser fo­cus on loss pre­ven­tion. New tools like the In­ter­net of Things with telem­at­ics, so­cial me­dia and drones will bring new in­sights and an­a­lyt­ics, al­low­ing in­sur­ers to in­vest in pre­ven­tion.

En­hanced plat­forms will lead to in­creased ef­fi­ciency and a bet­ter dig­i­tal ex­pe­ri­ence for con­sumers, while ro­botic process au­to­ma­tion will trans­form claims han­dling.

The abil­ity to cap­ture and cap­i­tal­ize on dig­i­tal con­tent, espe­cially un­struc­tured data, pro­vides new op­por­tu­ni­ties to im­prove com­mu­ni­ca­tions and en­rich the data needed to set­tle a claim. Lever­ag­ing mo­bile and cloud offers new op­por­tu­ni­ties to com­mu­ni­cate with cus­tomers when and how they wish to be.

Dig­i­tal hun­ters are pre­par­ing for the fu­ture

Dig­i­tal hun­ters are pre­par­ing for the fu­ture, even if they can­not re­place all the legacy sys­tems they rely on to do busi­ness. In­stead, they look for – and find – solutions that in­te­grate with mod­ern core sys­tems and busi­ness ap­pli­ca­tions while also ex­tend­ing legacy sys­tems. These solutions:

• Sim­plify in­for­ma­tion ac­cess and con­trol • Breathe new life into out­dated/legacy sys­tems • Keep in­for­ma­tion se­cure

These solutions also man­age the con­tent, cases and pro­cesses their core sys­tems can­not. They fill gaps in core sys­tems, such as Guidewire and Duck Creek, with com­pre­hen­sive en­ter­prise con­tent man­age­ment ca­pa­bil­i­ties such as cap­ture, doc­u­ment man­age­ment, se­cure file shar­ing, work­flow and cus­tomer com­mu­ni­ca­tion man­age­ment.

The line be­tween dig­i­tal hunter and dig­i­tal prey is a thin one. It’s one marked by dis­rupt­ing the sta­tus quo and find­ing in­no­va­tive ways to reach true dig­i­tal trans­for­ma­tion.

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