Digitalization and new technologies have become a central topic in the insurance industry. Technological progress and growing customer expectations force companies to implement modern digital solutions. During each industry conference, experts, market leaders and innovators discuss their potential, looking for solutions to secure the future of the insurance sector. InsurTech technologies tempt with the promise of simplified processes and personalized offers and seem to be an ideal solution. However, it is worth remembering that it is not enough to simply follow trends.
Investments in digitization – the data speak for themselves
According to industry reports, global investments in InsurTech amount to millions of dollars every year. The report of the Polish Insurance Chamber indicates, among other things, that in recent years as many as 80% of insurers have increased their financial spending on technological development and over 90% of insurance companies are actively involved in the process of modernizing IT systems and replacing outdated legacy systems with modern technologies.
The above research confirms the growing importance of digitization in this sector. Insurance companies see digital innovations as an opportunity to increase operational efficiency, improve customer experience and introduce new products tailored to the current needs of the market.
Are investments in digitalization triggered by real needs or is it only a “technological race”?
The increase in investments in digitalization in the insurance industry raises the question whether this is a response to real market needs or is it the outcome of the “technological race”, which forces companies to keep up with their competitors. In order not to be left behind, companies often decide to implement technologies due to fashion or other omnipresent pressures. However, it is crucial to make decisions on investments in digitalization not only because of prevailing trends but, above all, to address real business needs that these technologies can satisfy. Therefore, it is important that investments are well-thought-out and based on a reliable analysis of the specific challenges and goals of a given organization.
Digitization for its own sake – threats
Incorrectly implemented digitalization can do more harm than good. Companies that implement IT systems without carrying out a thorough analysis of their real needs may run into a number of difficulties. Instead of simplifying processes, they may complicate them or may give rise to changes that will not be accepted by employees, while the solutions themselves may prove ineffective.
Therefore, it is crucial to have trustworthy and experienced technology suppliers who are expert in carrying out in-depth analyses of the company’s needs and who can propose an appropriate solution and ensure its effective implementation. This is the only way to make sure that investments in digitalization bring real advantages and contribute to business development, rather than only following a fashionable trend.
Success story: Integration of systems in a leasing company
A perfect example of well-thought-out digitization is a project implemented for one of the leading leasing institutions in Poland. A company which had been present in the market for 25 years decided to take over insurance management internally to reduce costs, increase control over processes and improve customer service.
As part of the project, leasing systems were integrated with the insurance system and process automation was introduced, covering processes such as generation of offers, recalculation and issuing of policies. In this way, customer service time was shortened significantly and the risk of errors was reduced.
Integration with additional systems, such as the document archives and eBOK, improved data availability, whereas integration with the reporting system made it possible to monitor sales results on an ongoing basis, which helped to increase efficiency and to improve the quality of customer service.
This case study shows how properly implemented digitization can become a real added value, and not just a response to technological trends.
Digitalization as a real added value
A properly implemented digital transformation can bring a number of benefits which have a real effect on the performance of an insurance company. The main advantages of digitization include:
- Process automation – it makes it possible to reduce operating costs and human errors, which improves accuracy and brings time-savings. Thanks to automation, companies may also increase the scalability of their operations.
- Better customer service – thanks to personalization of offers and the ability to respond more quickly to inquiries from customers, companies may improve satisfaction of customers and earn their loyalty. In the era of growing consumer expectations, it is essential for companies to prepare and tailor their offers quickly in order to set themselves apart in the market.
- Greater competitiveness – organizations that effectively implement modern IT tools are able to achieve better financial and operational results. Moreover, they can adapt more quickly to changing market conditions, which gives them an advantage over their competitors.
Summary
A well-thought-out digital transformation is not just a fashionable trend, but a strategy that has a real impact on the efficiency and competitiveness of an insurance company. However, it is essential to make sure that investments in technologies are carefully considered and tailored to specific business needs. This is why it is so important to have trustworthy providers of IT solutions who will conduct a thorough analysis of the company’s needs and propose solutions that will have a measurable impact on the development of the organization.
Do you want to learn how to digitize your company effectively? Contact us – we will help you to choose the best solutions tailored to your needs!
