Being a 10-year veteran of the insurance and financial services industries, I have seen hundreds of companies execute successful digital transformation initiatives, and others fail. After careful observation, I have discovered what characterizes a winner. Here are some of the best practices on how any carrier can help build insurtech success.
Assess your organization’s readiness. Change isn’t easy. Winners start with an open mind toward change and a senior leadership team that enthusiastically supports the goals of digital transformation. Often, these companies already leverage current technologies, and have established effective processes for evaluating and adopting new ones. If your organization isn’t there yet, recognize that fact and start working to change attitudes. Raise awareness of the importance of working together to transform the business, so you can thrive and survive in the new, more competitive world of commercial insurance.
Focus on business problems. Successful organizations tie new technologies to business problems. They keep the problems front and center, and return to them to help resolve any differences of opinion that come up. They remind everyone of the underwriting and customer experience challenges and the goal of addressing them.
Get the right people at the table. Senior leadership, underwriting, and IT all have important roles to play in driving and shaping insurtech initiatives—leadership to help set and confirm direction, underwriters to share first-hand insights into the efficiency challenges and how they impact clients, and IT to identify potential solutions and work closely with underwriters to evaluate how well they address the identified business problems. Winning organizations may or may not have an innovation team, but if they do, they use it to bring underwriters, leadership and IT together to analyze business problems and solutions.
Collaborate with trusted technology partners. Transformation doesn’t end when the contract is signed. The most successful carriers choose vendors with an in-depth knowledge of the industry and a commitment to understand your company’s unique challenges and strategies. Winning carriers, in turn, develop a relationship of trust with their key technology partners. They’re open to disclosing their challenges and strategies and taking advantage of the partner’s expertise as they work together to address them. The partner stays engaged to offer advice and perspectives as you’re implementing the technology solution and making relevant process changes.
Stay engaged. Transformation isn’t a one-and-done proposition. Market pressures and technology capabilities will continue to evolve. Winners choose agile partners that can keep them ahead of the curve and help gain a competitive advantage from the turn of the latest technologies.
Envision the art of the possible. Transformative capabilities like artificial intelligence can produce broad ongoing benefits, and we’re just at the beginning of the AI revolution. Winners aren’t afraid to dream big—to ask what the future can look like in six months, one year and five years, and then work with their technology partners to make the vision a reality.