Insurance transformation

Transformation starts with a vision of what the organization wants to become. A clear strategy – well-articulated – will help the business make the right investments and decisions as the transformation progresses. Policy language should also be assessed and clarified to reduce any ambiguity regarding coverage terms, exclusions and conditions. Traditional claims foundations will also need strengthening. At all times, the customer must be kept at the center of the business strategy and the claims strategy.

True transformation comes from reimagining processes with the desired outcome in mind – combining the best of business design with the best of digital claims capabilities so that the business can orchestrate all parties to support a claim and get deep visibility into each step of the processes. While thinking end-to-end, also think function to function. There are handoffs that should be considered, integration opportunities that can be found and data that can be shared.

As the claims function transforms into a source of strategic value, new and different skillsets and ways of working will likely be needed. The aim is to strike a balance between implementing efficiency-improving automation and maintaining personalized service. As the more manual activities start to become automated, claims leaders will be able to shift their capabilities to focus on architecting the end-to-end experience using data and analytics to engage business partners in new ways.

One of the main reasons that many transformations fail is because people tend to fall back into old habits. But there are tools and mechanisms that can be put in place to assess and manage how new approaches are being adopted. Real and sustainable transformation requires insurance organizations to take a holistic approach that goes beyond technology implementation. Knowing what measures to track and how they can be influenced is key to driving value from claims transformations.