Page 44 - Insurance Times JUNE 2022

DIGITAL TRANSFORMATION IN THE

INSURANCE SECTOR: OPPORTUNITIES

AND CHALLENGES

he pandemic has changed the way insurers bit of the process should occur throughout the customer
T operate. Several processes such as sales, service, lifecycle, from prospecting until the moment of withdrawal.
and others have been moved across to digital
channels. In part, this context of transformation
is motivated by various factors such as the need to adapt to 3. Ecosystem development
You need to be able to respond to new consumer demands,
a new generation of consumers, the constant technological by branching out into other areas and new scenarios you
evolution and digital innovation, the increasingly intensive are not used to. The policyholder wants end-to-end
use of data, the emergence of new distribution channels solutions, giving rise to ecosystems and alliances with other
and last but not least, the new generation of digital start- companies.
ups.
4. Co-request with Insurtech
The digital transformation is quickly changing the rules of Some Insurtechs focus on a specific area or problem and
the game in the insurance sector. However, there are some apply technological solutions. For traditional companies, a
challenges in its adoption. Let’s take a more in-depth look dilemma opens up between competing with them or
in this article, as it’s important to be aware of them. collaborating by contributing with the best of their
knowledge.
Top 8 digital transformation challenges
5. Omnichannel
for the insurance sector
Omnichannel provides a new and better experience for the
Here you have the top 8 digital transformation challenges
client. It also generates new rich data that will facilitate its
for the insurance sector:
analysis and personalization of the business relationship.
1. Generate value through data
It’s important to understand how you want to use that data
6. Margin management
in a way that creates value. Only if you do that, it will be
Like any business, insurance companies will pursue a positive
possible to determine the various uses of data: personalize
ROI. However, the digital transformation of the insurance
the offer, improve the experience, retention of the client,
business can only reduce costs or increase them if the right
etc. The Data Driven approach is very important for decision
decisions are made and the adoption of technology to
making in insurance companies.
create new business models based on it is defined as a goal.
2. Customer Experience
7. Cybersecurity
Get to know the customer better and figure out what it is
Companies must remain extremely vigilant against threats
what you really want and whether it fits your proposal. This
44 The Insurance Times, June 2022