Time for a digital insurance platform upgrade?
Without a doubt, these are challenging times for insurance companies—especially those who have spent years, or even decades, delivering their services through legacy systems. Peers in the industry have stopped at nothing to become more competitive, and all to meet the stringent demands of the 21st-century policyholder.
Given the circumstances, and the already hefty costs of doing business, how can insurance companies still guarantee a good profit? And is it possible to dream forward and envision business growth for their companies in the future?
The good news is that a positive future awaits insurance companies who are willing to take a chance on innovation. Upgrading to a digital insurance platform may do more than simply allow carriers to survive in the modern era. If integrated correctly into the company’s operations and workflow, and used towards strengthening bancassurance and customer experience, the new technology will prove extremely rewarding.
To illustrate the financial benefits of using a digital insurance solution, here’s a list of five ways that it can improve a carrier’s profitability. Consider these benefits when looking for a new addition to your current tech stack.
A Digital Insurance Platform Will Decrease Hefty Operation and Administration Costs
The most apparent benefit of upgrading to a digital insurance platform is the assured reduction of operation and administration costs. Today, a number of insurance companies struggle with the costs of managing traditional brick-and-mortar-based operations. If yours continues to spend excessively on overhead costs just to do business, it will eat away at your profitability.
Hence, one of the best ways for insurance companies to gain a competitive advantage is for them to work light and smart. A cloud-based digital insurance platform can help them achieve that approach. So if you need a sign that new insurance technology is working for your company, check the savings you’ll have accumulated on these two costs.
It Can Improve Your Coordination with Your Banking Partners via Bancassurance
Another compelling argument for a new digital insurance solution pertains to the profits from bancassurance. In the parlance of the insurance industry, bancassurance refers to an arrangement between carriers and their partner banks. Such an arrangement allows carriers to sell their insurance products to the bank’s customer base. Bancassurance provides some of the greatest earning potentials for insurance companies, as it can allow for up to four times more growth in the sale of premiums.
A digital insurance platform will surely enhance coordination between carriers and banks, especially if both parties share a pursuit for innovation. The software will allow for both carriers and banks to work from a single source of policy information, enabling stable real-time communication and data exchange. The smooth, straight-through processing will also help both parties make good on sales and even introduce new products to the highly lucrative banking customer base. For this alone, your insurance company should aim to upgrade its current systems.
A Digital Insurance Platform Can Protect Your Company from the Costs of Fraud
Insurance fraud remains as much of a threat to carriers as it always has. But if companies don’t scale up in their ability to identify and manage false or exaggerated claims, the costs will be even steeper than before. Part of safeguarding your company’s value lies in protecting both its coffers and its reputation from the threat of fraud. Thankfully, this task will be much easier to handle with an upgraded digital insurance solution.
The predictive analytics capabilities on your new insurance software may be able to flag instances of suspicious customer behavior. That will allow you and your staff to look more closely at conspicuous activity and respond to it before any greater problems ensue. Ultimately, if your company keeps a good track record for protecting itself against fraud, your value and your good standing with the public are guaranteed.
It Will Help You Leverage Customer Experience as a Source of Value
Though new insurance technologies may be impressive in themselves, carriers can’t forget what the new software is meant to achieve. One of the key uses of a digital insurance solution is the maximization of value from customer experiences. Policyholders should be able to see their carriers make an effort to strengthen their quotations, enrollment, billing, and claims processes. If all of these are possible, then customers are more likely to enroll and to renew their policies, thus keeping money in the company.
The new platform shouldn’t be limited to maintaining existing insurance policies and processes, however. It can also be used to plan and implement new insurance products or to roll out decoupled or “un-chunked” policies that are more affordable. Suffice to say, there are a lot of exciting new profit opportunities to be had with customers once you have new digital insurance technology. It’s just a matter of using the tech to be even more customer-centric.
It Will Help You Realize Even More Potential from Your Employees
Last but not least, new digital insurance software may help nurture the potential of some of your company’s best assets: your employees. Working in the insurance industry isn’t easy, and there’s a lot of pressure on your agents, administrative staff, and leaders alike to step up. But if their digital environment inspires a smooth workflow and more efficient performance from everyone, then the investment will have been worth it.
The automation, data management, analytics, and cross-platform functionality of your insurance tech should complement the excellent work of your company’s human assets. Once it has, your company will be able to marry its timeless values with a more modern-day sensibility—an excellent formula for your future success.
To be profitable in the coming years, your insurance company shouldn’t only think about what it can do in the present. Thinking forward to the future will ready you and your staff to respond to new markets and new challenges in the industry.
A digital insurance platform solution can do a lot to strengthen your company’s profits and its earning potential not only now, but in the future. Consider new digital insurance technology today, and reap the rewards long after your integration.