We're back from Duck Creek's Formation 2022 and we had an amazing time learning and connecting. While the conference as a whole offered a plethora of industry insights and knowledge, I wanted to share our key takeaways.
Top Technology Priorities
One theme that was prominent at Formation ‘22, however not unexpected; was the critical importance of insurance carriers adopting a modern platform. In fact, a poll done at the conference indicated that, of all tech priorities for the next 2-3 years, a centralized customer experience platform was the top priority for insurance companies. We heard it time and time again. Whether we heard it at the general sessions or during panel discussions, speakers alike unanimously agreed that success in today’s modern and diverse marketplace drives the need for technology and modern core system capabilities. Prioritizing tech facilitates improved business results, aids in the creation of a better policyholder experience, and further diversifies a company’s offerings.
Centralized Customer Experience Technology
It is no secret that the insurance industry, as a whole, tends to be digital laggers. This is in part due to:
1) the common perception that customers would rather communicate with a live person
2) that insurers are held back by old legacy software systems.
We learned that yes, customers do prefer to communicate their insurance needs over the phone. However, they feel this way because only certain parts of the customer journey are automated, which limits confidence due to a lack of information available. Customer demands have evolved beyond what traditional systems can offer and new buying habits have forced change. Customers expect information immediacy, personalized services, tailored product offerings, and an on-demand ability to buy, update and access their information.
To support this, comes the idea of a centralized customer experience platform—that threads together automated technology, mobile apps, web and mobile sites and customer service centres. Centralizing the customer experience into an omni-channel environment that supports a seamless automated customer journey enables insurers to offer their customers capabilities that are “future proof, adaptable and resilient across an enterprise”.
By leveraging tools and technology available, you can put your customer at the center of your focus, increasing their feeling of control and access to actionable data, while simultaneously increasing your productivity, ROI and CX.
Leveraging Partner Ecosystems to Offer Improved Functionalities
The move away from traditional legacy systems to SaaS, is not as easy as a click of a button—That said, the rise of Insurtech companies has made it easier for insurers in terms of envisioning what is possible within automation but also in terms of implementation.
Digital implementation partnerships, allow insurers to take advantage of the potential and higher levels of performance and capabilities needed to enable a centralized customer experience. Ultimately, aiding in building, delivering, and running a more innovative process. Partnerships that offer pre-built integrations, cut back on costs associated with building internally, faster time to market, ensure business continuity, improved customer experience and frees internal resources so that time can be spent elsewhere.
Insurtech Intelligence like AI and ML
Gone are the days of manual processes, as automation, Artificial Intelligence (AI) and Machine Learning (ML) have paved the way for insurers to engage and interact with policyholders in a more efficient and proactive way. However, that is not to say that all insurers are utilizing these technologies. For instance, after a poll done at Formation ‘22, 72% of insurance carriers said that they do not have texting enabled within their claims process, however in the same session they said that Insuretech add-ons like AI and ML are within their top 3 technology priorities in the next 2-3 years. What that tells us is that not only can we expect sizeable change in adoption of technology like this, but an overall digital shift for customer communication.
The effects of the COVID-19 pandemic have changed the insurance industry and the insurance market. To adapt to the new customer buying habits, insurance companies will need to re-evaluate their processes and decide if they will make the plunge towards advancements in Insurtech.
Formation ’22 was a unique and well-thought-out conference that brought together many likeminded individuals, innovative companies, and a plethora of fantastic speakers. It offered a spotlight that showcased; the amazing business results that leading carriers today are driving, industry thoughts and knowledge of what is involved, how to adopt a modern platform, and critical digital Insuretech’s that are required to succeed in today’s modern and diverse marketplace. It’s clear that the insurance industry is making huge technical advancements to serve their customers and I can’t wait to see the impact!
See how SPLICE can help you with your technology priorities and a centralized customer experience! ->