Insurers have all gotten the message: Maintaining the status quo isn’t an option. Change is necessary or they face being ‘irrelevant’ in the future. Where are insurance companies when it comes to transitioning to a new way of conducting business? A panel of industry experts (Karen Furtado of Strategy Meets Action, Rob McIsaac and Don Metz of Novarica, and moderator Nathan Golia of Insurance Networking News) shared their comments at StoneRiver’s 2016 Executive Council. Some carriers have made great progress, while others lag behind.
My previous post touched on the 6 Ways a Modern Claim System Should Empower a Carrier. Claim intake is a critical part of the process, so it pays to investigate that part of the claims operation to discover the benefits of a more modern system compared to one deployed in the 2003 – 2010 timeframe.
As a follow up to my article on 12 Strategic & Tactical Questions to Prepare for Insurance in the Future I think it would be good to discuss the questions one at a time to look a little more deeply at the impact on your insurance business. We mentioned that by 2020 there will 50 billion devices connected to the Internet worldwide, also known as the Internet of Things (IoT).
As customers get to know the vendor and its offering, they go through a long period of discovery in order to learn everything they need to know about the solution. As the relationship matures, one can look back and observe the crossover of enlightenment, but it can be very difficult to fully anticipate what will arise during that maturation period.
Articles in insurance-related publications point out repeatedly that insurers don’t do major system replacements on a frequent basis. So there might be more than a few issues that surface when it’s time for evaluation of a replacement system.
In 2011 industry analyst firm Strategy Meets Action (SMA) said that the Life insurance industry was on the cusp of a shift in thinking, attitude and action when it came to automated underwriting.