5 key insights from the Digital Transformation in Insurance Press Roundtable
The insurance industry is undergoing significant transformation, driven by technological advancement and changing customer needs. However, successful digital transformation extends beyond adopting cutting-edge technologies; it requires a cultural shift within organisations.
Recognising this need, Future Processing hosted a Press Roundtable on Digital Transformation and Culture Shift in the Insurance Industry on November 7th. This online gathering brought together industry experts, including Mike Gilpin, Director of Augmented Business Ltd, Lauren Stables, Head of Operations at Aurora Insurance, Evangelos Avramakis, Head of Digital Ecosystem R&D at Swiss Re, and Dawid Gławdzin, Director of Partnership Development at Future Processing.
Moderated by Saxon East, the roundtable explored the challenges and opportunities of aligning digital strategies with cultural change within insurance organisations. The participants shared their insights into how insurers can foster a culture of innovation, embrace digital technologies, and adapt to the evolving insurance industry landscape.
From the thought-provoking discussion, here are 5 key takeaways:
- Revolutionising the customer experience through digitalisation
- Enhancing service delivery and cost reduction through digital tools
- The pinnacle of digitalisation: innovating with AI
- Mitigating risks in novel service development
- Insurers’ innovation reputation and navigating change
Revolutionising the customer experience through digitalisation
Digital’s impact on customer experience was the first question experts discussed. Evangelos Avramakis pointed out that right now the real challenge lies in claims handling, servicing, quotes, and product management.
As Mike Gilpin emphasised, common platforms can revolutionise data sharing by offering tailored service spectrums that streamline insurance products.
Dawid Glawdzin echoed the sentiment, focusing on time-saving efficiencies and the burgeoning trend of customised offerings: “We’re seeing more and more custom-made offerings on the market, resulting in a custom-made approach”, Mr Glawdzin said.
Also, Lauren Stables advocated for a modular approach to product development: “Customers seek customised insurance that aligns with their specific needs and is presented clearly and understandably; they desire tailored products and documents.” In her opinion, building products in a modular fashion allows customers to purchase insurance tailored precisely to their risk exposure.
Read more about Digital Transformation:
- 10 companies with successful digital transformation [examples]
- Why are digitisation, digitalisation & digital transformation crucial steps in business development?
- 10 biggest mistakes during Digital Transformation
- How to create an effective digital transformation strategy?
Enhancing service delivery and cost reduction through digital tools
The discussion focused on the transformative potential of digital tools. Dawid Glawdzin highlighted the significance of faster risk assessment and quicker launches facilitated by advanced technologies such as low/no-code solutions. He also highlighted the pivotal role of data standardisation and cleansing, significantly reducing product configuration time.
Lauren Stables discussed insurers’ digital investments and highlighted the advantages of this approach to operational efficiency and data organisation. Stables noted that digital adoption enables insurers to collect more structured data, aiding in analysis and response to emerging trends.
Mike Gilpin emphasised the immediate accessibility of services through digital transformation initiatives and their role in fostering collaboration among stakeholders. Evangelos Avramakis said, however, that customer engagement will remain challenging.
The pinnacle of digitalisation: innovating with AI
AI integration into insurance emerged as a pivotal theme. Lauren Stables shed light on AI’s role in property valuation and IoT sensors, foreseeing a paradigm shift in risk evaluation and real-time data acquisition. According to Mike Gilpin, AI has multifaceted applications, such as claims assessment and voice analysis, to expedite the fair resolution of claims.
AI is already being seen in several areas – notably in chatbots for customer service purposes, but also in areas like risk assessment and claims processing.Mike GilpinDirector of Augmented Business Ltd
Dawid Glawdzin discussed the potential of Generative AI for customer-facing solutions, including its ability to expedite customer interactions. One example provided by the expert was a chatbot connected to policy wording documents that delivered detailed answers to detailed questions within seconds.
Another example would be Copilot, a tool that provides developers with real-time code suggestions to complete tasks faster and more efficiently:
- GitHub Copilot speeding up developers work by 30% – a case study
- The pros and cons of using GitHub Copilot for software development – survey results
Mitigating risks in novel service development
In addition to addressing accessibility concerns, the discussion illuminated the challenges of developing new services, such as the potential drawbacks of rapid AI-driven advances.
Premature product development could lead to the loss of human interaction and touch. Artificial intelligence decision-making processes may overlook individual circumstances, resulting in inaccurate recommendations. Dawid Glawdzin warned against rapid technological developments compromising human interaction. As Mike Gilpin pointed out, insurance companies must strike a balance between innovation and inclusivity to remain competitive.
In light of Evangelos Avramakis’ mention of the impact of digital transformation on internal roles and customer experiences, Lauren Stables advocated for comprehensive upskilling and engagement strategies. In her view, “customers might lack the technical capabilities or necessary equipment to access digitised products, thus missing out on the benefits these platforms offer.”
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Insurers’ innovation reputation and navigating change
Some argue that insurers have not historically excelled at fostering a culture of innovation and change. The insights from the discussion highlighted insurers’ traditionally cautious approach to innovation, anticipating a forthcoming shift catalysed by global changes and technological advancements.
It was Lauren Stables’ observation that some specific gaps in engagement prevented the adoption of technology within the industry, while Dawid Glawdzin predicted that innovative technologies would be rapidly adopted by insurers, especially when they were applied effectively to customers, indicating an imminent transformation.
Echoing this sentiment, Evangelos Avramakis emphasised the power of integrating valuable customer interactions, allowing technology to streamline other aspects.
As the entire roundtable discussion demonstrated, digital transformation and cultural change are inevitable and occurring faster than expected in the insurance industry.