DIGIN 2022: The State of Digital Transformation
Digital transformation is top of mind as it reshapes how insurers navigate the hundreds of decisions that need to take place from the time of an auto accident all the way through to resolution.
In a discussion at the DIGIN 2022 event in New Orleans, Jason Verlen, CCC’s VP of Product Marketing, took the stage along with Janet King, Arizent’s VP of Research, to discuss key findings from Digital Insurance’s recently completed research study.
The research offered unique insight into insurer mindsets, including on where customer experience fits within insurer innovation efforts. Plus, attendees heard thoughts on analyzing and integrating large amounts of data into a digitized claims process as well as on how AI and a connected network can impact insurer workflows and improve policyholder satisfaction.
In the following clips, listen in as Jason offers his perspective on advancing technology, policyholder journeys, the abundance of available data, and more.
The Pace of Change
Research Insight: The industry is taking an incremental approach to digital transformation.
When asked for his thoughts on this finding, Jason unpacks how the pace of change is relative depending on how it’s perceived. In just the last few years, AI has made a serious impact on the claims process.
Not long ago, insurance carriers digitizing their claims process was mostly unheard of. Today, 27% of all repairable vehicle claims go through more automated steps, and that number increases greatly with additional considerations. Many industries are experiencing transformative change, and the insurance industry is just one example illustrating the pace the world is remaking itself.
Research Insight: Only a minority of carriers feel highly prepared to advance digital transformation.
There is work to be done in the areas of technology, talent, process automation and organizational structure before insurers feel fully ready for digital transformation. In response, Jason discusses the advantages of platform adoption vs. an internal-only approach. He also shares advice on how to approach building a roadmap, and how an insurer can plan for future changes.
A Forward Look at Customer Experience
Research Insight: Carriers prioritize customer experience when planning for digital transformation.
There are three aspects of customer experience that an insurer may want to consider. For one, bringing ecosystem connections into their workflows to create more seamless policyholder journeys from start to finish. Another is building trust with their customers. Then finally, efficiency – a need underscored by recent labor shortages. The potential of straight-through processing can address these, helping bridge multiple entry points and pathways within the claims workflow.
The Power of Data
Research Insight: Insurers identify advanced analytics platforms as the technology with the most potential to accelerate digital transformation.
Research Insight: In the coming year, cloud technology will be the top area to receive new or incremental insurer investment.
Digital transformation is happening rapidly, and advanced analytics platforms can give insurers the insights needed to act on the wealth of available data in meaningful ways, such as allocating resources, identifying impediments and reducing cycle time. And when it comes to the cloud, many carriers are already interacting with it, but from payments to simplified communications and beyond, Jason provides examples of how further integration can help accelerate processing even further.
How do Insurtechs fit?
Research Insight: Insurers see value in partnering with insurtechs that provide advanced AI and analytics technology.
When asked about the benefits of working with insurtech providers, Jason said that by far, the most important is the ability to scale. To make this happen, a carrier must integrate connections into workflows in a way that aligns to their needs. Jason also shares an example of how an insurer, repairer, and OEM linked within an ecosystem supports a seamless, efficient process across the network.
The session included much discussion about technology, change, and transformation, but now the question is why? The future of insurance comes with its challenges, some of which include climbing repair costs, vehicle complexity, and talent sourcing. Jason touches on this, plus potential solutions for the future.
From enhanced policyholder experiences to increased efficiency, improved decision making and beyond, the insurance industry is evolving and exploring how digitization can make an impact.