The last year has proved to be one of the most difficult that the insurance industry has ever faced, but the challenging times are not over yet. In addition to the increase of regulatory challenges, as well as competitive and customer disruptions, insurers continue to endure the unanticipated effects of a global pandemic. Insurers’ technologies are stretched to the max, and employees now work from home offices in an effort to accommodate social distancing guidelines.
Customers have also been confronted by this environment and expect even more from their insurance providers. Between fluctuating stay-at-home orders and other restrictions, along with continuing concerns posed by the current climate, the need for insurance has never seemed so significant. However, for insurers to overcome the added pressures and deliver the exceptional service customers expect, they will need to make a fundamental shift in their operational model.
The key to resiliency is in operational changes and business reinvention
Insurers need to adapt to ensure that the effects of disruption – whether caused by an unexpected event, such as a pandemic, or a new regulation – do not hinder the experience their customers receive. Insurers must reinvent their business so that the services and products they provide are both appropriate for customers now and capable of withstanding future upheaval.
This might sound like a huge undertaking, but it is possible to achieve these goals through the use of technology, which will allow insurers to consolidate, analyze and use data-driven insights. Data is at the heart of the solution.
Better data improves visibility that, in conjunction with accurate scenario-based modeling and planning, will assist in the development of a more agile organization. This is especially important at a time when some insurers have had to grapple with the added challenge of doing business with a lower headcount. Data can also be useful in anticipating when customer service functions might be affected by local lockdowns or increased restrictions.
Use data to better tailor products to customers’ needs
Better data can drive artificial intelligence that can be applied to how products and services evolve for customers. They want insurance that instills them with confidence during difficult times, but insurers need to balance their coverage to avoid overexposing themselves to events that could appear out of nowhere.
See also: Free Insurance Data You’ll Need
You can’t predict the unpredictable, but you can plan for it
To survive this climate or any other challenging situation, insurers must be able to plan, model and predict the likelihood and impact of possible events. By using technology – and, more specifically, data – insurance providers can ensure that customer expectations are met and that businesses are prepared for the future.
