Some times it’s important to take a page from other industries. For example, Syntel, Inc., a global provider of digital modernization, information technology and knowledge process services, finds that U.S. insurance companies are increasingly joining the digital revolution in response to a growing number of consumers who prefer to use mobile phones and other digital devices for their insurance needs.
Research from PwC has revealed that 71% of consumers have used some form of digital research before buying an insurance policy. The report also found that approximately 25% of consumers currently purchase their plans online. This number is expected to grow, particularly among the millennial generation.
While most insurance companies are focused on leveraging an eCommerce model to sell their traditional offline services in an online storefront, others are developing deeper, more personal and longer-lasting relationships by utilizing digital capabilities to improve their customers’ knowledge base.
According to Nitin Rakesh, CEO and President of Syntel, “It is very clear that, like other industries, insurance is subject to the need for digital modernization, brought on by the demands of digital native consumers. Digital natives expect an omni-channel experience with greater accessibility and anytime, anywhere services —something that may be difficult for traditional insurers to deliver.”
Rakesh also asserts that engaging customers through social media channels enables insurers to uncover business insights that help them understand consumer sentiment, preferences, and behavior,all of which are vital components to making good business decisions.
A recent report from IDC highlights the impact of emerging technologies on the highest levels in senior management decision-making. The report said that two-thirds of CEOs will be focused on digital transformation strategies throughout 2016. In the past, transformation has more traditionally been the dominion of CIOs, which underscores the increasing importance and business critical nature of these decisions.
“In a competitive market environment, speed and agility are vital for insurance companies to survive and grow,” said Rakesh. “Because CEOs are now being measured on their ability to quickly adapt to the changing digital landscape, it is vital to seek out a trusted service provider with the necessary expertise.”
Mr. Rakesh’s company, global IT and business solutions provider Syntel, offers a suite of digital modernization solutions that reduce the run the business cost and provide the efficiency and agility to increase speed to market, andenable businesses to funnel the savingsinto new innovations.
Rakesh states that it is crucial to embrace automation as part of this process.
“With many insurers stuck with business-critical legacy systems, the biggest challenge is to keeppace with digital innovations while maintaining and automating business-critical legacy systems,” he said.“Automation allows for faster and more cost-efficient transformations to take place.”
According to a recent report by Vertafore, insurers that do not automate their services face a significant decrease in customer satisfaction when it comes to customer experience. The report also found that 67% of insurance consumers are open to the idea of bypassing traditional insurers to purchase plans, looking instead to digital leaders like Amazon and Google for services.
As more non-traditional players enter the marketplace, 66% of the insurers surveyed recognize the threat and attribute it to the proliferation of Big Data. Those companies adapting to the need to digitize are seeing positive results. Of those companies employing marketing automation as a strategy, 77% observed increased conversation rates, while 80% saw an increase in leads.
“Digital modernization is the final frontier for insurers,” added Rakesh. “Automating and modernizingoutdated systems frees up the resources required to forge ahead with new innovations andexciting products that meet the needs of the more demanding 21stcentury consumer.”
Sound familiar? It should.