According to Celent’s recent report “North American Insurance Software Deal Trends, 2014”, more insurance carriers are investing in technology upgrades in 2014, following strong sales over the past two years. Technology advancements are enabling insurers to process claims more quickly and capture a holistic view of client accounts.
As well as benefiting insurers, technology upgrades are also causing disruption. Customers are adopting new technology at a faster rate than insurers, making it difficult for them to keep up. According to a recent article, a lack of customer centricity is a big concern for non-leading insurers. Adopting big data and mobile technology would enable insurers to become more customer orientated.Mobile technology, adopted as part of a multi-channel strategy, will enable insurers to provide up to date information to customers in real time. This technology may increase customer satisfaction and lead to improved retention.
Big data provides insurers with information relating to customer demographics and past claim history. Analytics enable insurers to better predict risk while improving marketing and sales efforts. A survey carried out by American Express and CFO Research in January 2014 found that 92% of CFO’s realize they need to leverage company data over the next twelve months. Over half of these respondents believe that big data would give them a competitive advantage in the market.
With so many changes in technology occurring over the next five years have you analyzed your current system?
To ensure you can keep up with changes in the market, answer these two questions:
- What are your future goals? E.g. To improve customer service or increase claim-processing efficiency.
- Can your present system and processes help you meet these goals?
If the answer to the second question is yes, you are in luck and can probably meet your goals without a system over haul. If the answer is no, now is the time to consider a technology upgrade, before your competitors get ahead. Christian Bieck, report author and global insurance leader for the IBM Institute for Business Value, states that “When we see change accelerating, non-leaders will not be able to catch up anymore.”
So don’t get left behind, talk to us about an upgraded claim management system today.