According to Insurance Journal, the Insurance industry is in a state of stagnation, struggling to maintain profitable operations. Fee transparency has made it easy for customers to seek out lower-cost options, while growing technology adoption has heightened price and speed pressures, fueling an increasingly competitive landscape. The market’s changing demands require insurance companies to operate at increasingly faster speeds. As McKinsey reports, “What used to take years must now be done in months or weeks.” In addition, for many insurance companies, the transition away from legacy systems and siloed functions in the face of budgetary pressures is daunting.
Insurers can work with an automation partner to meet these challenges. As for the last of them mentioned above, such partners enable insurers to make the most of their existing systems, using digital workers to operate between previously siloed systems and sync data between applications. Furthermore, by integrating IA into claims, underwriting, pricing, and distribution processes, insurance firms can improve margins, productivity, and customer and employee satisfaction. For instance, Thomas Miller, a leading international insurance services provider covering 80% of the world’s containers, worked with SS&C Blue Prism to integrate intelligent automation into its operations. The services provider was looking for solutions that worked with its “low-volume, high-value” model and didn’t require implementing costly new IT infrastructures. As a result, the company was able to see significant ROI, increase agility and resilience, process renewal applications 24/7, improve accuracy while reducing turnaround times, and give underwriters more time to focus on value-promoting work. This ultimately served to improve the customer experience, a key competitive differentiator in the industry today.
Although the demand for insurance is expected to continue to rise this year, especially in emerging markets, the industry’s long-term outlook will depend on its ability to adapt quickly. Advanced digital technologies can either boost insurers’ competitive edge or render them obsolete. The future relevance of the insurance industry will depend on its willingness and commitment to adapt to this changing environment.