Insurance Legacy Systems do not support digital world initiatives nor offer the agility to implement the Amazon style customer experience that insurance customers demand.
Hence the importance of digital platforms that combine insurtech and fintech innovation with the core systems of record. Cloud computing with legacy mainframes and the ability to deploy in months rather than years.
Insurance carriers and brokers can give customers the power to notify claims and manage the process from their phones and tablets.
Claims handlers can request additional information including photos and video by SMS and email with all inputs being time and data stamped as part of a single digital record for every claim. Every point of contact time & data stamped and securely encrypted.
But it is far more than just letting the customer provide photo & video evidence of the damage to homes, vehicles and property. A process that engages the customer, speeds up claims settlement and can lead to a 30% "walk-away" by claimants making spurious claims.
Relevant parts of that single digital record can be shared with parts of the supply chain. Drainage, electrical, plumbing, groundworks, decorating, plastering contractors for example.
A perfect platform for reverse auctioning building and vehicle repairs to suppliers speeding up the process and strip[ping out admin costs.
Organising this for the benefit of the customer, the insurer and the supply chain. Booking vehicles in, arranging car hire, and doing wonders for productivity.
" Insurers should be investing substantial resources in developing an organizational culture with digital knowhow and a mind-set that will attract people who are able to execute a transformation when the time is right. Allianz, for example, is investing—€650 million—in developing next-generation digital capabilities to support more than 85 million customers. Carriers need to ask themselves: If we’re not investing like Allianz, will we be competitive in the future?"
Source: McKinsey Quarterly - "Life Insurance: Ready for the digital spotlight" April 2017
See how Allianz is tackling the challenge across P&C Insurance at "Allianz harvesting the digital dividend".
The third and final challenge for insurers is the existence of legacy IT systems that don’t translate particularly well to an omnichannel and digital world. We recommend a staged approach to accelerate IT integration and foster the development of omnichannel solutions. It starts with a pilot program whose goal is testing and learning. It may require manual input of data by IT staff. Next, a minimum viable product is evolved to a more scalable level, eliminating the manual effort.