Introspective: Key technologies to the rescue during year of pandemic
The ongoing pandemic has significantly impacted the insurers across all lines of business and their underlying financials - from P&C to life. The biggest challenge this pandemic has brought is disruption to business and operational continuity. Many insurers had business preparedness and contingency planning in place but that didn’t work for a crisis of this scale. The insurers had to swiftly reprioritise operations, modify their processes and redesign workflows to continue their business going. To ease operational pressures, non critical areas of the businesses had to be temporarily stalled. In this publication, Insurance Directions would like to highlight several technologies and ways of working that helped getting on amid the crisis. The pandemic has pushed organisations to work in very different ways. The insurers integrated business and technology to respond to it flexibly, effectively and frictionlessly.
Insurers who had already invested in cloud are managing well in this crisis. Insurers utilised cloud and VOIP services to scale up key technologies needed for remote workers and remote applications. The use of public cloud platforms and hybrid clouds helped in making them available fast. The elasticity of cloud ensured continuity of operations at scale. They could also serve their customers better which was an added advantage over competitors.
Adding Automation , Artificial Intelligence and Machine Learning are another crucial component in handling the demand for answers from clients. Automation of processes helps businesses with continuity when human driven processes fall short. The current crisis is successfully being overcome by human-machine collaborations. We believe it will form the foundation for more intelligent automation adoption in the future.
The companies that had started their Digital Transformation and had developed numerous digital channels and ecosystems have managed better so far. So the key lesson is one of adapting to new technology and being able to both scale up in certain places and scale down in others mostly enabled by cloud technology. Added to this automation namely RPA and AI/ML to cope with the demands from call center automation and flexibility in process workflows to collapse and enable more digitisation of processes has made a big difference for companies to cope better. Collaboration technology has been a godsend and enabled numerous meetings and faster decisions being taken. Covid19 has pushed organisations to operate very differently. The insurers need to integrate business and IT skill sets. How effectively and frictionlessly an organisation can use technology to fulfill business operations will drive the success in current times. We have already seen what has worked so far. As the digital has become new normal, Insurance Directions believes the way forward would involve following key technologies.
Figure 1: Typical Solutions amid Covid-19 Pandemic
Source: Insurance Directions
Machine learning, NLP, computer vision and other AI technologies can help insurers to be predictive and proactive. Gradual progression of Automation is the key here. Adapt processes: redesign, collapse, consolidate, collaborate them as short term solutions amid the crisis and to support the overall organisational resilience. Collapse manual workflows to suit social distancing measures.
The ongoing pandemic has proved that the Digital Transformation is a key differentiator and key for surviving the challenges. Companies on their journey with new technologies and digital channels have managed to stay profitable and invest more to prepare for future ‘normalisation’. While doing so their priorities have stayed focused around improving agility of operations and providing better employee and customer experience. We saw how various technologies came to the rescue in the challenging times. We believe ongoing digital transformation directives will continue to help insurers in being more resilient. Just think out of the box - for innovative flexible policies, new revenue models and new opportunities around business contingencies and continuity.
Hybrid cloud: Cloud has given the insurance vendors a flexibility to scale and update with changing demands and capabilities. Insurance Directions believe the insurers to increasingly adopt hybrid cloud infrastructure. Hybrid cloud enables them to leverage advantages of both - public and private clouds. Add to that as insurance vendors use more and more technologies and apps, the cloud has become more essential.
Remote working is here to stay in the post pandemic world too meaning empowering them through technologies will be crucial. The collaboration technologies to execute team operations as well as customer facing processes, managing security of remote sign-ins, etc will all be part of the new normal.
We expect more values coming in from machine learning in automating more and more processes in claims processing, policy administration, risk assessment, etc. With the increase in digital files, it is easier to analyse them using AI and manual processes can be reduced. And eventually these processes can be more efficient and faster.
The insurance sector had been traditional and conservative so far. But the mindset is changing with the innovative insurtechs, rising digital culture as well as from the threat of blurring industry boundaries from giants like Amazon and Google. Insurance Directions expect this pace of change to continue in near future too.
Artificial Intelligence (AI) is already improving insurers’ efficiencies in the customer facing processes in customer services, underwriting and claims processing. It also enables insurers to create customised customer experiences based on the behavioural and customer journey data that are already available. Over the next few years, Insurance Directions expects to see extensive use of AI (in managing and underwriting risks, identifying new risks, detecting fraud, identifying new revenue sources, innovating new product lines, etc) and its profound impact on the business.
TP: 01 PN: 1554 VN: 01 YS: 21
Content Type: Corporate Advisory ; Programme Type: Corporate Advisory Programme
Applicable Verticals: Technology/ICT, Services, Healthcare, Insurance
Applicable Regions: Global
Applicable Subjects: Digital Platforms, Digital Eco-System, Digital Customer Experience
Insurance Directions is a brand of TekPlus.
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This publication derives from our Advisory Practice, Product No: TP01PN1554