Covid-19 has led to one of the biggest shifts in the insurance industry. But what does that mean for the future of the sector? We sat down to speak to Jason Collier, principal advisor from US-based Maple Street Advisory. Hear Jason’s key takeaways for the insurance industry this year:
“Reviewing operational efficiencies is more important than ever.”
Covid-19 has had a huge impact on insurance carriers worldwide, highlighting the need for more efficient operations. With many insurance companies, such as auto insurance providers, giving their customers rebates based on an understanding of reduced usage during the pandemic, there has been a huge cut in revenue – making reviewing operations more important than ever.
“RPA tools have seen an increase in usage – but they only solve a small part of the problem.”
RPA tools are an effective way of automating basic tasks but they can only fulfil basic functions within your business, meaning insurance companies are left asking: what comes next? An Intelligent Automation platform can provide service orchestration, allowing businesses to oversee end-to-end outcomes that achieve their goals.
“The insurance industry has not been commonly known for being early-adopters of new technology”
Insurance companies are specialists in managing risks – and that culture often extends past underwriting into the rest of their operations. As an industry that develops robust plans, inclusive of worst-case scenarios, they are typically not early adopters or fast followers in new tech. The idea of investing money in something that is unproven, and unpredictable is typically not part of their DNA. This means companies who don’t start shifting that culture within their operations are at a risk from newer, disruptive competitors who are entering the market with innovative solutions.
“Trust in Kaizen over Kaikaku.”
Many small changes over time make a bigger impact than one radical transformation. Take a look at your business processes, document them and then tweak – automating small areas with the right tools. Companies are looking to connect the existing systems they have and introduce new user interfaces that join their data together to achieve defined outcomes.
“Reframe automation solutions to get team buy-in.”
The world is shifting from one of humans’ assisted by technology, to technology carrying out processes assisted by humans. This different approach can often leave teams reluctant to adopt new solutions, through fear of change or risk to employment. It’s vital that insurance companies reframe this thinking with one simple question: what’s the part of the job you hate doing the most? Improve individuals’ roles by automating the areas of their job that they feel they provide the least value through – often the most boring and repetitive tasks.
This last year has been about switching from growth to survival mode for many businesses. The insurance industry has needed to pivot quickly, and the companies that have embraced flexibility have performed the best.