Although the industry had digital as a "priority" in almost every survey in recent years, the events of 2020 have accelerated its significance – created a tipping point for insurance. Malcolm Gladwell's bestseller, The Tipping Point, described this phenomenon as a "magical moment when an idea, trend or social behavior crosses a threshold, tips and spreads like wildfire." We now have a "Digital Wildfire" that is expanding rapidly every day and reshaping all aspects of our customers' lives and businesses.
The COVID-19 crisis revealed less than desirable customer experiences due to manual, paper-based processes, non-digital postal service transactions such as receivables, payments, printing, mail, an increase in online insurance purchases and the need for extra caution due to fraud. Projects are prioritized for this and next year to adapt to the new reality. But in that process, companies must consider prioritizing investments in the digital platforms that meet their needs today and in the future.
Digital insurance platforms ̵
1; Digital Wildfire creates a burning platform
We have been writing and talking about digital platforms for a few years, including in our thought management report, Insurance platforms – A burning platform for market leadership in the Digital Era of Insurance . Through our research over the past 5 years, we have found that a top motivator for digital transformation is the need to meet customers' and distribution channel's expectations of a much improved experience. We identified a strong intersection between business and consumer technology trends that are relevant to the insurance industry that requires a new insurance platform. The insurance platform lays the foundation for a new business model for digital insurance defined by a focus on customer experience, business innovation and technical leadership, with rich and robust capabilities that enable speed to value as a digital insurer.
In the report on the insurance platform, we define a platform as an architected, network system that provides access to a wide range of services, data and other functions. continuously and seamlessly upgraded with newer technology, content and functionality; accessed via APIs included in a robust, comprehensive API directory; enables personal customer engagement; is cloud-based with a scale-scale, pay-per-use pricing model; utilizes AI and machine learning through embedded features; is flexible to gather heterogeneous services from several providers (technology, data, InsurTech); and enables rapid "testing and learning" for new business models and products while supporting current operational business models.
Basically, the insurance platform model replaces the old paradigm of the integrated suite of core insurance systems focused on transaction processing with "one-size-fits-all" portals across the core. While this method improved traditional insurance operations in recent decades, it does not meet the requirements and expectations a new insurance age as it leaves the unchanged nature of the business model and the products that insurance companies sell. via application programming interfaces (APIs) that enable customer-driven digital transformation, as well as platforms for innovative companies to create speed to value, unique customer engagement, a "test and learn" platform attform for minimal viable products and value-adjusted, optimized costs.
Digital platforms need to digitize, optimize and innovate
On June 24 SMA held a virtual event (now available on video) focusing on digital platforms. Manish Shah, Majesco's CEO and Chief Product Officer spoke about our view of digital transformation, what defines a digital platform and how Majesco Digital1 st® Insurance is a next generation platform to accelerate insurance companies' digital journey. We built Majesco Digital1st® insurance from the ground up to provide the ONE platform to enable organizations to pursue relentless innovation with speed and agility as they accelerate their journey on the digital maturity curve.
Manish described the digital transformation journey with three main parts:
- Digitize – Is the first step and enables organizations to create digital portals for interaction with traditional products and channels, to digitize and automate existing processes.
- Optimize – The second step enables organizations to move beyond digital portals to create richer digital experiences beyond core transactions.
- Innovate – The ultimate step and end goal enables organizations to launch new and innovative products and services to transform your business and operational models to build sustainable, competitive advantage.
Customers' expectations and changing market dynamics shift bus iness and operating models and drive of digital transformation. We believe that all three steps in digital maturity – Digitize, Optimize and Innovate – are needed to build a sustainable, competitive advantage in the digital age. Many of our customers are in different stages from building the next generation of customer and agent portals, optimizing the business with electronic invoice payment, creating a powerful single quote and buying experience for different products across several policy systems and utilizing new dynamic data sources to create an innovative product. market demand. This is just the tip on opportunities and innovation that is going on.
Digital leaders – from owner to orchestra to supplier
Emerging digital leaders, many of whom adapt to our knowledge – Making leadership focus from our strategic prioritization report, is aggressively investing in new business models, products and processes – including customer engagement and distribution models adapted to a more digital economy and growing demographics.
Customers are looking for ways to make their lives easier and have a great experience. The next generation of customer experience is larger and broader, and it requires a digital platform and a robust ecosystem that work together under a common platform across different core systems.
Given the nature of ecosystems, insurers may assume several roles, from the owner of the unifying platform, to orchestrator of products and services, or supplier of products and services. What they achieve will depend on their ability to create a coherent digital experience … that requires a digital platform that creates rich customer experiences; renew business models, products and services; exploits a huge ecosystem with third-party capacity; capture market opportunities; competes in the digital age; and reinvent the insurance industry. Future success and growth are linked to your answers and your digital transformation.
What is your digital strategy and journey? What role will you play with your customers? Are you investing in a digital platform that takes you across the journey or stops at the first step in portals? Do you have a burning platform for today's digital wildfire? If not, listen to Manish Shah's video as your first step on your digital journey.