6th June 2023
Introducing new technology to an insurance business can be difficult.
You have to consider the impact on your customers, as well as the cost of training and disruption during implementation. It can be time-consuming and costly. But for many insurers and brokers, it’s the only way to move forward and keep pace with not only changing customer demands, but the demands of compliance, and fraud prevention. So, how can you effectively manage digital transformation, with minimal disruption?
Digital transformation is the practice of initiating a process and culture change within a business towards a digital-first approach. In most instances, this means integrating a variety of technology – from artificial intelligence (AI) and machine learning (ML) to the use of digital collaboration tools – to better support the existing workforce.
The purpose of this is to enhance productivity, make real cost savings, enhance compliance, increase customer service and improve customer outcomes.
The best way to fail, or to spend more than you need to in any business venture, is to jump in without a plan. So, begin by identifying all the customer and colleague processes/experiences that can be digitised or automated, then investigate potential solutions and their ability to solve problems or add value. Keep a watchful eye on the alignment with the vision your business has, so you can be certain that the transformation deliverables match your ultimate business goal.
It is human nature to resist change and digital transformation often brings significant change. Involve your teams from the start, keep them informed, and get them onboard. You’ll not only streamline the implementation process with them already onboard with the ‘transformation journey’, but you may also gain some important insights into where digitisation could better support the business.
The knee-jerk approach to digital transformation is to rip everything out and put a new system in. But in many cases, it’s often simpler, more cost-effective and puts less strain on the business to modernise legacy systems. Often overlooked, it’s always sensible to ensure that data is available and in the right format and place to support modernising legacy systems or migration to a new system.
Compliance is often the driving force behind digital transformation in insurance firms. Changing legislation brings increasing pressure on all financial organisations and technology can provide you with the searchable audit trail you may need for any FCA investigations. Furthermore, digital transformation can help simplify the processes you use to ensure that points of compliance are routinely met – whether checking that your AML procedures are watertight or implementing KYC checks.
Digital transformation can’t happen all at once without causing massive disruption for your business. You will need to implement changes in phases, prioritising the things that will have the greatest impact, building, designing, and optimising each step of the way. A key component of this is don’t have a fixed plan, create agility by need leaving in the ability for flexibility as needs and solutions often change during a transformation. . Lastly, its also important not to overlook the potential of automation, and how it can be used both to change the way your business operates and as part of the implementation process itself. Getting an external expert resource to help fast track your digital transformation journey should be investigated to optimise returns.
Successful digital transformation relies primarily upon planning and your workforce. If you fully understand your core objectives, you will be better able to find and implement the solutions you need, building on your workforce and complementing it.
If you need support finding and delivering specialist digital transformation solutions for the insurance sector get in touch today.
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