Transform from Insurance to Insurtech

The property & casualty and flood insurance sectors are notorious in their reluctance to give up cumbersome legacy systems. However, the writing’s on the wall, and it says insurance is a prime target for disruption. In the digital era, new titans will arise, and established players must pivot quickly to remain relevant.

The transformation of an insurance brand, from a conventional company to a cutting edge insurtech firm, is no simple task. However, the significant business benefits, such as cost savings, improved efficiency, and reduced human error are impossible to ignore.

According to McKinsey, in the race to achieve digital superiority, nine out of ten insurance businesses struggle to integrate transformative technological solutions.

The process is more than skin deep. It’s nothing less than a complete rejuvenation of all areas from decision making to business processes to growth strategy and beyond.

How can companies make the transition less painful yet still leverage all the benefits? Is there a way to fast track the journey to the digital realm? A look at some of the available tools gives us a clue. In this article, we’ll discuss:

  1. Mobile claims applications
  2. Loss reserve calculator
  3. Business process automation
  4. Web based marketplaces
  5. Cloud migration

1: Mobile Apps Begin At The Edge

The property & casualty and flood insurance sectors revolve around the cycle of adjustments and claims. Methodology that streamlines the claims process provides immediate value by slashing resource drain.

For example, an adjuster mobile app can be used in the field to collect information and capture images of damage or loss for flood and damage claims. Even in off-grid areas, these apps still work as the data can be synced as soon as a network becomes available. Documents can be uploaded via the app and sent back to the office allowing for much faster claims processing.

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2: Loss Reserve Calculator

When configured and enabled, the system can automatically calculate estimated values for Claims Building & Content Loss Reserves. The calculation factors in exterior and interior water depths along with other key measurements. These values can be used as calculated or be overwritten by the adjuster prior to submitting the Preliminary Report.

These at-the-edge tools, such as mobile adjuster apps, accelerate the claims process, improve accuracy, and provide higher quality client service. As we move further down the data pipeline, even more business benefits become apparent.

3: Business Process Automation

While the adjuster is out in the field, the back office can use a portal to view documents and images received in real time to validate information. This eliminates the need for the adjuster to physically return to the office to initiate claims processing.

Workflow robotics (sometimes called robotics process automation or business process automation) can assemble the mobile app data and upload it to a system hosted in the cloud. Data validation, policy adherence, deductible paid, and other tasks can be fully automated. These highly manual tasks can now be completed by bots that do the work faster, more precisely, and at a lower cost.

4: Website Marketplace

On the flood, property & casualty insurance policy sales side, digital solutions can transform a carrier or broker website into a marketplace that’s open 24/7. Not only can customers apply for policies directly online, but claim status can be checked as well.

In the life insurance sector, Haven Life has reduced the time to process applications from 1-2 weeks to 20 minutes via their website’s online marketplace. That’s revolutionary. Similar efficiencies are materializing in the flood, property, and casualty sectors.

5: Cloud Migration

In every sector, data migration to the cloud is occuring at an increasingly accelerated rate. The reasons for this are:

  • New innovation is unfolding nearly exclusively in cloud based applications. On premise, legacy networks will be locked out of new tools.
  • Cloud scalability is easier and more affordable than on-premise architectures.
  • Data is easier to store, access, and share at low cost.
  • Productivity and efficiency are enhanced as legacy network data travel lag is eliminated.
  • The cloud offers more effective and flexible security methods.

Transformation Roadmap

The insurance sector will see dramatic changes in the next 2-5 years. Implementing a transition strategy in such a short time span is a huge undertaking. One of the biggest bottlenecks is acquiring the right workers in this era of tech talent shortage.

For these reasons, many insurance companies will choose a faster, alternate strategy by partnering with tech firms that have already built the required tools. With tech R&D off their books, insurance companies will be able to focus on how to best grow their business with powerful digital tools at their disposal.

Want to ramp up from insurance to insurtech? Contact Evoke now.