The impact of 2020 on the life insurance industry is undeniable. What started as an exercise in business continuity plan execution gave way to a full-fledged focus on innovation and digital transformation. Some life insurers had already made a strong commitment to digital transformation. For others, 2020 precipitated a proverbial “shotgun wedding” with digital.1 No matter how the marriage occurred, digital transformation will continue to be a catalyst to help connect more consumers with life insurance.
In fact, the need to put the consumer in the crosshairs of business strategy is at the very heart of digital transformation. Many insurers are placing a huge emphasis on accelerating the underwriting of life insurance—and rightfully so. Nowadays, the ability to quickly collect information and evaluate the proposed insured’s risk profile is table stakes in an improved customer journey. But the most successful companies will be those that also extend digital transformation to use cases before and after underwriting occurs.
For example, using data and analytics at the point of sale can help expedite the application process, making it simpler and less cumbersome for applicants and at the same time improving data quality for insurers. Solutions that can prefill certain application data fields and provide identity verification and authentication are essential, regardless of whether the producer or the proposed insured is completing the application.
But in the end, the “final frontier” for digitization may well be that territory that lies after policy issue: service and claims. The ability to provide consumers with easy, instant access to their own account information, to provide a user-friendly interface for self-service transactions, and to deliver transparent, simple-to-understand guidance to help beneficiaries make claims—all of these interactions represent opportunities for improvement.
The more you know about your customer, the more you need to be channeling that knowledge into a personalized service experience for that customer. Understanding customer preferences around communication styles, minimizing redundant processes, providing expedited, safe, online self-service options can help send the message that the insurer is listening and cares.
When setting digital transformation goals, be sure that you’re not limiting the engagement to only one component of your workflow. Seek to understand the entire continuum from point of sales to point of claim as you create your strategy—and keep the consumer as the focal point across all segments. The good news is that for those companies who fully embrace and deploy digital transformation, rewards abound far beyond improved customer experience. A recent Accenture study suggested that “future ready” companies –that is, those who “double down on digital transformation”—have seen almost two times the efficiency and three times the profitability of their peers.2
No matter what part of the customer journey your team wants to improve, LexisNexis Risk Solutions is ready to bring leading edge data and analytics to help expedite and improve your processes. Whether you’re starting small or looking for an entire workflow process rebuild, we’re committed to helping life insurers become more sophisticated users of data and analytics.
1 McKinsey To Insurance: Get Younger, Get Digital And Get Flexible – InsuranceNewsNet2 “Future-Ready” Organizations Leveraging Digital to Operate Faster and Smarter Could Help Unlock $5 Trillion in Economic Growth, Says Accenture Study | Business Wire