The insurance industry is competitive. Competitors are already using technology to not only survive but thrive in the digitalised world. And if you’re not prepared to embrace what technology can offer, there is a genuine possibility that your business will be left behind.

However, the important thing to remember, is that technology is your friend. Digital transformation isn’t just a buzzword for large enterprise. Small and medium size insurer’s, MGA’s, broker’s and other insurance intermediaries can all leverage software and technology to give them a competitive advantage. Whilst every business has budget constraints, the insurance software and insurtech market is maturing, and as a result business will now likely find a solution that closely aligns with both their operational and financial requirements.

Is technology really our saviour?

Sometimes, it’s difficult to determine the precise moment when a business’ practices and technology stack, become an impediment to their operational requirements or growth objectives. It’s even harder to define when a business begins to lag behind its competitors in these areas. However, in an industry where traditional processes and software are common place, it’s not hard to recognise some tell-tale signs of outdated, inefficient operational activities that could be improved with the right technology.

To start, it’s worth considering whether your staff, teams and departments are working in unison. Or are their activities siloed, each working independently to accomplish their own individual workloads.

Furthermore, question what software your teams are using. Do they each manage their own platforms to deliver their work. Are their files, data and communications used solely for the purpose of their role. Or do your teams work on the same platform and dataset.

If your teams focus on the delivery of their own workloads only, and your business operates across multiple platforms, that do not cross communicate or integrate with essential back office systems such as emails and diaries, inefficiencies are bound to be commonplace. Rekeying data, excessive paper handling, duplication of work and files per team is just a handful of areas where improvements could be made.

Additional complications with such working practices, is that the business leadership lack visibility and are often poorly informed, so struggle to act decisively, implement change and drive growth. Disparate, outdated software (yes, we are talking about traditional software such as Excel) will also impact performance with capacity and supply chain partners. If you’re unable to integrate with their own systems or distribute data efficiently, performance will suffer.

Combined, it’s clear that legacy software and processes will hold you back. The right technology is the first step towards competing within a rapidly advancing landscape.

Fear of disruption

It’s understandable that many businesses avoid the difficult decision to adopt new technology, due to the fear of disrupting an otherwise operational business. The prospect of deploying new systems, training staff to use it effectively and, as a result, adopting new working practices can be off-putting.

This common misconception about adopting new software or technology is by and large misplaced. Your way of working does not have to change. Admittedly, some vendors will have a rigid platform whereby your business must adapt its workflows and processes to be able to use the technology successfully. But, not all platforms are made equal and with an evaluation of the different solutions on offer, it will be clear that your way of working, your workflows and processes can not only be maintained, but enhanced with the right solution to support them.

Furthermore, adopting new technology doesn’t have to be “all or nothing”. Some vendors are capable of providing their solutions with a phased approach. This helps a company benefit from the specific parts of the platform that addresses their critical needs, whilst having the comfort that future requirements will also be satisfied as and when the business matures or is ready to adopt more of the solution.

What is important, is to look for a flexible solution that is capable of complementing your business and its operations. Adopting new “alien” technology that conflicts with how your team works and your business operates, will not be efficient or effective in getting staff buy in. The secret to successfully deploying new technology is to be selective. Just because a vendor is large or renowned doesn’t mean they can flex their software to suit your business or cater to your specific requirements. Instead, look for a technology partner that is prepared to work with you and align their platform with your business requirements. In doing so, you’ll be one step closer to a successful, stress free deployment.

Leveraging technology for a competitive advantage

Modernising your operations and ensuring your business is efficient is not just sensible, but critical to survive. But, how exactly can technology give your insurance business a competitive advantage?

To start, the right technology can address the industry’s most common pain points. Pains and issues that a wide range of broker’s, MGA’s and insurer’s commonly grapple with. Problems that legacy software and technology simply can’t solve.

Here are a small selection of areas that the right software can help with and what you should look for in any platform that you choose to evaluate:

Maximises profit from your data.

Data is an insurance businesses most precious asset. Intelligent use of your data ensures your business can make the most informed, most profitable decisions.

If your data is a burden rather than a profit centre, you must do something quickly to remain competitive. Technology is the answer. It is essential to centralise your entire data environment, so every department has a unified view of the information critical to business success. But that’s not where it should stop.

Using the data effectively is critical. A modern system is capable of processing, interpreting and distributing live data to supply chain and carrier partners to ensure a seamless, profitable ecosystem, which in turn will reduce manual workloads and meet the increasing demand for accurate reporting. Furthermore, intelligent use of this data can not only reduce premiums for end customers but also offer them added value in their policy, that will help win and retain future business. All of this, simply isn’t possible, when using a myriad of different legacy software and processes.

Platform functionalities to achieve this may include:

• Artificial Intelligence (AI) embedded into the system, that is capable of automating data handling, analysing large volumes of data and producing meaningful insights.
• Integration with carrier and supply chain partners for automatic distribution of data.
• Analytics that incorporates data from within the organisation as well as 3rd party sources.

Removes operational inefficiencies.

The insurance industry is beset with convoluted processes and a reliance on out-dated software to run a complex industry. Without leveraging technology to modernise your teams daily workloads and the processes used to deliver the end product to the customer, your business is likely experiencing significant operational inefficiencies and extra costs over your competitors.

Backend insurance platforms will inevitably help your business evolve and start to eradicate the inefficiencies ingrained in an insurance business reliant on legacy software and traditional workflows. The tools these platforms offer will enable each department in your business to efficiently process each step of the customer lifecycle as well as deliver a more efficient service to capacity providers and other partners.

Platform functionalities to achieve this may include:

• Communication and organisational tools that facilitate effective teamwork and collaboration.
• A centralised, single database that provides a true source of all company data.
• Automation of repetitive tasks & processes.
• A connected solution that manages the customer lifecycle through each department.
• Robust integration into existing internal & external software.

Helps you respond to new opportunities and changing markets.

To compete in the insurance industry, your business must be agile. You need the ability to disrupt precisely when the market calls for it or adapt your model rapidly to succeed in turbulent market conditions. The pandemic has been a sobering case in point.

This can only be achieved when you have the right information at your fingertips. An advanced insurance platform would help your business to quickly interpret your data, gain genuine insights into opportunities and market developments. Something that is simply impossible or so time consuming and difficult to achieve with legacy software, that the opportunity is often missed or not fully capitalised upon.

Empowering your teams to be able to act when they need to act is key, as is enabling business leaders to respond swiftly when the right opportunity or market development appears. This is only possible with the right technology.

Platform functionalities to achieve this may include:

• Configurable product builder to launch new products with ease.
• No-code or low-code development so you can adapt quickly.
• Integration with physical technologies, such as IoT, usage based and risk rating devices, to future-proof and expand the breadth of your product offering.
• A solution that is class agnostic and supports a wide range of risks.
• AI data interpretation to help you make decisions faster.
• Access to real time MI across the entire business.

Drives business improvement and digital transformation.

Managing a successful insurance business isn’t simple. And deploying new technology can be a challenge. But, if you continue to rely on human processes and legacy software, your customer experience, carrier and supply chain performance will undoubtedly suffer. Over time, your competitors will far exceed your capabilities.

Embracing digital transformation and intelligent new technologies can help your business take an evolutionary leap. With many solutions offering inbuilt automation, machine learning and even Artificial Intelligence, your business can quickly leverage the benefits of advanced technologies to improve performance for customers and supply chain partners. Ensuring you remain competitive and you have the foundations in place to drive business improvement on an ongoing basis.

Platform functionalities to achieve this may include:

• Ongoing, personalised support to ensure the solution precisely matches the requirement now and as your business digitally transforms.
• Automated policy administration for rapid documentation, mid-term adjustments and policy insights.
• 2-way communications across your supply chain so time sensitive and critical data is shared instantly.
• Intelligent data processing, such as transforming transactional data into configurable bordereau, dashboards and other reports.
• Aftersales tools to provide a high level of service that helps retain customers.

Ensures profits don’t slip away.

Escalating costs, increasing supply chain demands and challenging market conditions, to name but a few reasons why your profits are being squeezed now more than ever before.

Navigating these challenges and remaining profitable is difficult. Growing your business or optimising existing revenue streams to improve the bottom line, without additional staff and operational overheads, is near impossible.

Here, technology has a solution. Many platforms available are specifically designed to ensure every element of your business is as efficient and therefore profitable as possible. With a single platform to perform all processes and workloads, across every team and department, a business can easily cut manual input and remove inefficiencies from legacy processes. In turn, growth and improved profitability can be achieved without additional staff as the software takes on the “heavy lifting” and existing teams can focus on activities that genuinely increase the bottom line.

Platform functionalities to achieve this may include:

• Connected tools and software that will help your teams work in unison and more productively.
• Artificial Intelligence (AI) & automation to improve efficiencies and decrease costs associated with manual workloads.
• Sales and marketing tools that help capture every sales opportunity that arise & automates the renewal process for reliable revenue.
• A single, easy to use platform that will allow you to grow without additional headcount or operating expenses.