The driving forces behind digital transformation in finance

By Joman Kwong, Strategic Solutions Manager for Financial Services at Laserfiche

The main driving forces propelling digital transformation initiatives within the insurance industry over the next two years are centred around elevating customer experience and streamlining value chain operations. According to a recent survey conducted by Arizent Research and Digital Insurance in collaboration with Laserfiche, the primary business imperative steering this transformation is the establishment of a digital-first customer experience coupled with an emphasis on bolstering customer satisfaction.

This strategic shift involves a concerted effort to automate various processes, including:

  • Enabling self-service requests for policy quotes
  • Automating and centralising document processing across all value-chain operations
  • Streamlining of claims processing

Additionally, a key focus lies in automating routine communications about the status of claims. By adopting these measures, insurance companies can reduce the paperwork burden on customers, foster greater transparency in operations, and ultimately foster improved customer engagement.

Elevating Customer Experiences

Seventy-seven percent of insurers report that the majority or all of their digital transformation initiatives are centred around enhancing the customer experience. In fact, six out of ten insurers indicate that their digital transformation efforts have progressed beyond the stage of digitising and organising information, focusing instead on automating and streamlining processes. The positive impact of these automation efforts on the customer experience has not gone unnoticed. Organisations that have increased the efficiency of their operational workflows are more inclined to label their digital transformation initiatives as customer-centric.

Boosting Operational Productivity

More than half of insurers are currently exploring automated processes and seeking enhanced operational efficiency. However, despite these efforts, only a small fraction have fully achieved their automation goals. A mere 18% of insurers report that their operational workflows are fully automated and highly efficient. Even more concerning, 20% acknowledge that their operational workflows currently suffer from some degree of inefficiency.

One possible explanation for this lack of progress may be attributed to the absence of data centralisation and effective system integrations, a challenge that becomes even more pronounced as organisations expand. Among respondents from organisations with 10,000 or more employees, 39% admit to grappling with information silos and disconnected applications.

The need for automation in various facets of the business continues to grow. Notably, a lack of automation in internal processes could leave the vast majority of insurers (87%) who plan to implement remote or hybrid work models over the next two years unprepared. Without fully automated and efficient workflows, the risk of data loss, human errors, and disruptions in business continuity remains significant in geographically dispersed workplaces. Moreover, without real-time access to data, employees face limitations in their ability to support customers.

Harnessing the Right Technology for Business Results

The results reveal a change in priorities, signifying a reassessment of the driving forces steering digital transformation in the insurance sector. To achieve these goals, it’s vital to establish a centralised information backbone, streamline data entry and processing organisation-wide, and facilitate seamless data integration across applications to support any automation initiatives.

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