The insurtech space is evolving. Between 10 - 15 new Insurtech companies launch per month, and are set to revolutionize the market through their understanding of digital transformation. These ventures understand that for transformation to be true, they need to go beyond turning manual processes into digital formats. For traditional carriers, this has meant overhauling services, spending millions of dollars, and waiting years for completion. This myth in the industry has meant many carriers fail to embrace true transformative thinking. Could having a business first approach be the answer?
Misconceptions of digital transformation
As digital innovation advances, businesses need to consider how best to use technology to deliver the right value to customers. In a recent study, Deloitte revealed that digital tools can enhance financial performance, customer satisfaction and product quality. However, many carriers see transformation as taking a manual process and sticking it online. Carriers need to consider how they bring legacy systems into a digital environment that serves customers well. In the past, this may have been a long process, however, low code software solves this issue. With this in mind, where do you start the transformation process? What if having a business-first approach meant fully transforming?
A business-first approach
For large carriers, digital transformation can be perceived as complicated due to a reluctance to change. Deloitte has already published that despite nearly 100% of insurers becoming more digitally transformative, only 30% were making improvements to the underwriting process. Why? They are looking at transformation from a technology-first view. When carriers take a business-first approach, they are able to build products that align with goals and satisfy shifting customer needs and technology acts as a form of support. A business first approach entails stripping back to the foundations of the business and not by starting at the backend of the legacy system.
With a cloud-native solution, carriers can design products with speed, ease and agility. Innovations can now take weeks or months, instead of years. INSTANDA uses innovative technology and limitless customizations, which gives leaders freedom to sell policies quickly and efficiently. Carriers can edit the platform as the industry grows and this allows for true digital transformation. Could this new technology be the turning point for the insurance industry? If carriers do not transform in the right way, they risk spending more time and money replacing old systems as technology continues to develop. By putting business goals first, carriers are then in a position to make digital transformation more achievable.
Dispelling the myth
Having a fresh perspective on traditional processes can make true digital transformation a reality. The myth of digital transformation being a daunting process is no longer the case thanks to innovative technology that has revolutionized the market. INSTANDA dares to do things differently and uses technology to empower insurers.
To learn more about how to achieve true digital transformation, speak to the team today and find out how the insurance industry is being revolutionized by new technology. Stay tuned for our next insights and follow us on Twitter and LinkedIn to stay up to date on our activities.