Technologies including machine learning, artificial intelligence, and robotic process automation, are transforming how insurance companies operate. These technologies are providing insurers with a better understanding of risk, reduced costs, and more satisfied customers. The journey to digital success isn’t easy, and many insurers are struggling to implement digital strategies that increase value for both company and customer. How can insurers succeed with digital transformation?
Robotic process automation (RPA) is transforming the way State Auto Financial does business. Greg Tacchetti, CIO and Chief Strategy Officer, has implemented RPA to reduce the time employees spend on manual tasks. The technology is estimated to cut labor costs by more than 30,000 hours per year without eliminating any employees.
“We’ve been able to reallocate labor to more value-added” tasks, says Tacchetti. “RPA has been a real nice lift for us.” RPA is just one part of the company’s larger business transformation initiative that focuses on customer experience.
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Renewed Focus on Digital Transformation
Many insurance companies, while looking towards digital transformation, are struggling to implement a complete digital strategy. For insurers to create a complete strategy, they must focus on communication and customer experience. A recent report by Aite Group showcased five main areas of digital transformation that will put insurance companies on track to a complete digital strategy.
“Six of the 10 most used applications today are messaging applications. Consumers have spoken, and they have a preferred communication channel,” says Bob Guidotti, EVP and President for Software Solutions, Pitney Bowes. “Today’s empowered consumer expects businesses to meet them where they are. Businesses must recognize this and integrate technology capabilities that allow them to have immediate, data-driven conversations with their customers.”
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Digital Pushing Insurance Forward
Insurance companies are looking to new technologies to help with workload, accuracy, and cost savings. This digital transformation leaves legacy systems behind and implements software like AI that is not just more reliable, but more convenient. “Brokers are entering data in our systems, they’re classifying risks, and we’re relying on their expertise to properly classify a risk. At times, either because they’re moving very fast or because they don’t have enough knowledge of how to classify a risk, they may misclassify a risk,” said Kardiner Cadet, senior vice president of StarStone’s e-commerce division. “We’ve implemented artificial intelligence to confirm what they’ve entered in the system.”
“Understanding that nuance through AI has been transformative for us. It’s allowed us to cull our book of many risks that we otherwise would have written,” explained Cadet.
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