Digital transformation is here. Insurance companies are redefining business and operating models - creating new conditions for their growth
The covid-19 pandemic is a global crisis that has fundamentally disrupted the economy and called into question the very essence of its global functioning. It is also necessarily intervening in the insurance industry, much faster than the previous crisis. The entire industry must respond quickly to turbulent developments and the consequent impact on employees, customers and society. Steps need to be taken to help minimize immediate losses and stabilize insurance companies in a new situation after covid-19.
“Like the banking sector, insurance companies are in a relatively good starting position at the beginning of the crisis. However, in order to handle the situation well and create a resilient structure for other crises, they need to consistently digitize their processes, innovate their business and operating models and create new conditions for their further growth, "says Jiří Sobola, Managing Director for Insurance Accenture Czech Republic. "In addition, customers compare the level of services provided and the technical background of insurance companies with digital leaders such as Google, Amazon and Facebook. Therefore, we can expect continued pressure on innovation and digitization," adds Jiří Sobola.
Adopting the concept of an open insurance through an ecosystem-based approach and a shared platform will require new forms of collaboration that can share data and experience to create new services that address customer needs. Insurance companies should not be afraid, they should take the initiative and accept these forms of cooperation.
In the current situation, insurance companies should consider the following three principles:
Impact on Customers
Create working conditions so that people can work remotely using professional digital collaboration tools. Develop the necessary skills to support the use of these new ways of working.
Maximum clients support
Adapt to changing global and local conditions by meeting the individual needs of clients. Act transparently and with understanding.
Ensure business continuity
Ensure effective support for relationships with suppliers and B2B partners. Develop new business processes so that they effectively adapt to new types of cooperation and the current form of decision-making.divizi Microsoft z Accenture Česká
Over the coming months, focus on:
Digitally available go-to-market models:
Social distancing will also affect people's future behavior after overcoming the covid-19 crisis. Each company is now in a different phase of its digital journey, but all must now continue to consistently digitize key processes in particular. Businesses must also use technology to reach existing and new markets, as more and more customers demand and seek a digital environment.
Cost reduction and transition to "never normal"
Analyze your current external expenditures and prioritize investments that will help reduce operating costs and improve operational efficiency in the near future. Then analyze existing IT projects and their overall contribution to the transition to "never normal".
Use advanced analytics to optimize performance
More than ever, advanced analytics can help increase operational efficiency and support remote workforces. Its use to determine basic performance metrics and will help to get an idea of how insurers may need to adapt their product and distribution strategy to meet new standards.
How can we learn from the current pandemic?
Although the current pandemic is a global crisis in which the entire planet must work together to limit its consequences. It is also an opportunity to think about how best to learn from it.
"It will certainly be beneficial for insurance companies to find out that more and more residents will prefer to provide services from their home. Therefore, insurance companies should accelerate their digital transformation, both in terms of services for clients and the ability of their employees to perform work duties from home," concludes Jiří Sobola from Accenture ČR.