Digital Transformation in Insurance Industry

June 23, 2019

First things first, why is digitization so important?

The number one reason would be the removal of boundaries. When you move your entire business to a digital platform, you are able to grow without needless concerns about geographical locations. Second, your business operations become more efficient, thus allowing you to focus more on quality and other equally important business aspects. By becoming more efficient, it also means that you are able to reduce operational costs and invest that money somewhere else. Thirdly, you have more control over the information that flows both inside and outside of your organization. Taking advantage of innovative solutions and modern technology like Artificial Intelligence and Machine Learning enables you to combine information and analyze it in a way that creates added value. Lastly, your entire organization becomes flexible, ensuring you have a competitive advantage over your competitors. To summarize this in a sentence:

Digital transformation is fundamentally changing the way we do our business today, delivering unique value to customers every day.

It all comes down to outdated and siloed systems. Content Management systems have existed for a long time now, but in today’s day and age, they have become outdated. Even though they still contain immensely valuable information, it is impossible to combine it into greater value and effectively use it for making important business decisions. Furthermore, assessing and migrating content to another platform is time-consuming for companies, creating higher operational costs for businesses, thus making them less efficient.

This is how digital transformation paved the way of success for companies today. The question is, how is digitization changing the way companies operate on a daily basis and who are the key people in this process?

Digital transformation is affecting all businesses and industries across the globe. New and intelligent solutions are enabling companies to be creative and innovative in solving day-to-day business problems and challenges. In today's digital world, most papers have to be eliminated from business. This trend can also be noticed in the insurance sector, where artificial intelligence and machine learning are creating a large increase in underwriting and claims information.

But how exactly do companies achieve this paperless state?

In the interest of preparing well for the future just around the corner, we wanted to bring you more insights on what is currently going on in the Insurance and Financial Services Market.

For this purpose, we recently made a webinar titled "Digital Transformation, just talk, hype or promises: let's realize the Real Business Value on your Digital journey!" . The webinar was hosted by Frank Driessen, our Director for Datum Solutions in Europe. Frank, along with several great speakers, talked about the digital transformation and its current impact on the Insurance Industry.

Our first guest was Douglas Shillito, Founder of Shillito Market Intelligence. He is famous for many things, but he is best known for his renowned Market Intelligence services. If you wish to find out more about his research at the Newslink Global Trends Research Database Services, you can kindly visit www.onlystrategic.com . Our second guest was Eddie Balsom, Portfolio Manager at DXC Technology. He was one of the key people who were responsible for the delivery of the Insurer’s Market Repository (IMR) , as part of a major digital initiative at Lloyds of London and the London Market Group.

We won’t unveil the full content of the webinar, but we felt an urge to share some of the key points that were discussed during the webinar. So, let us begin.

The webinar was primarily focused on gaining insights about how it is working towards a goal to digitize and move an entire platform to something completely new, and previously non-existent. Digitization is not an easy process. It is extremely difficult in this context to keep the communication flowing with clients and customers and not lose any value in the process. This is where Datum Solutions stepped up. Together, using innovative solutions powered by new technologies, we were able to create and move a platform, effectively getting rid of the extensive amount of paper in the organization. An interesting thought by Douglas Shillito was that in order to move to a digital platform, all of the paper chase must be streamlined or eliminated. It is perfectly clear that digitization is driving positive changes in businesses, even in the Financial and Insurance industries.

In these laser-focused sessions, the discussion was about the key influences and the main game changes of digital transformation. Digitization is enabling businesses to leverage Artificial Intelligence, Machine Learning, Robotics, and Blockchain in order to improve and optimize business processes. It essentially empowers companies to be competitive in the Insurance Market.

“Moving to a digital platform is an essential element of being competitive.” – Douglas Shillito

Having a competitive advantage over your competitors means that you are doing business better, cheaper, easier and faster than everyone else in your industry.

With the key elements that make up the core of the Insurance Industry’s future – competitiveness, differentiation, sophisticated risk analysis, and underwriting, it is important to leverage Artificial Intelligence and Machine Learning in order to go smoothly through your Digital Transformation journey.

It is important to note that this journey would not be the same without General Data Protection Regulation (GDPR) , which is keeping a watchful eye on innovations and the use of new technologies like Artificial Intelligence. Thus, businesses should keep in mind all the important regulations when switching to new platforms, or digitizing their business in any other way.

On another note, Eddie Balsom also shared with us his role and experience within the Insurers’ Market Repository (IMR) Re-platforming Program, highlighting its most important aspects like scalability, known brand supplier, and proven technology. To provide some context about how massive the IMR is: • It secures over 3 million documents, including • 20 million claim transactions, and has • 13 thousand active users.

The fascinating thing about IMR is that it has been present since the early part of this century, with the difference that, initially, it was a non-supported platform. The key role of DXC and Datum Solutions in its development was to move it from an unsupported platform to a fully supported platform that was the IBM FileNet product.

Migrating from one platform to another is extremely challenging. There are many obstacles on the way, and it takes a lot of time and effort to do it right. That’s why it is important to have experts on your team. Solving any kind of challenges in a creative and inspiring work atmosphere, they can help businesses migrate to a new platform successfully enabling them to thrive in the digital world.

If you want to learn more about how you can leverage technology and improve your business processes in the Insurance industry, be sure to check out the full video replay of our webinar here: