Insurers are feeling the pressure to adopt digital strategies or risk falling behind. In fact, a recent study found that more than 50% of insurers believe digital transformation is vital to attracting consumers and improving current policyholder retention rates. The time for change is now.
Many insurance companies are modernizing their core systems across claims, underwriting and billing, migrating to the cloud, and digitizing distribution channels to meet growing demands. However, the key to successful transformation lies not just in adopting new technologies but in ensuring that employees can seamlessly navigate and leverage them.
Common Digital Adoption Challenges
Legacy systems often lead to data fragmentation and inefficiencies, but the transition to modern, cloud-based platforms can be challenging. This shift requires significant upfront investment and can meet resistance from long-standing employees accustomed to older systems. Still, many insurance leaders believe the limitations of legacy systems have become a major roadblock.
Insurance companies also face the growing skills gap and aging workforce. As these companies adopt new technologies, they must take the time to upskill their existing workforce and make the industry more appealing to younger, tech-savvy professionals. Additionally, entrenched processes and resistance to change within organizations can present challenges and slow the pace of digitization. This is where strong change management becomes essential. Organizations must foster a culture that is open to innovation, where employees at all levels are encouraged to embrace new technologies.
The Benefits of Digital Adoption Platforms
Digital adoption platforms (DAPs) revolutionize how insurers engage with new technologies by providing contextual, in-the-moment support tailored to each user's role and skill level. Instead of relying on generic training materials, DAPs deliver personalized, interactive learning paths that enable employees to learn by doing. For example, a new insurance agent logging into a claims platform for the first time would immediately receive an interactive walkthrough customized to their tasks, ensuring they grasp core functions while completing real work. This hands-on approach reduces learning curves and fosters faster adoption.
DAPs also offer targeted, real-time guidance to help employees overcome common roadblocks without losing momentum. For instance, if an adjuster hesitates while filling out a complex claims form, a contextual tip can instantly clarify the requirements, unblocking progress and ensuring accuracy. By delivering support at the moment it is needed, DAPs empower employees to work more independently, which increases their confidence and reduces dependency on IT and training teams.
DAPs can also provide insurance companies with valuable insights into how their employees interact with digital tools. Analytics capabilities can identify underused features and highlight areas of friction within workflows. With this data, insurers can optimize their systems and tailor and refine their processes to align with their employees' needs. This continuous cycle of feedback and improvement ensures digital platforms remain agile and effective, which not only enhances employee satisfaction but also leads to optimized efficiency and increased return on investment.
Real World Successes
Many insurance companies have already reaped the benefits of digital adoption. Sentry Insurance, for instance, implemented an innovative digital adoption platform across eight key applications. It accelerated staff onboarding and saw a 40% reduction in the time it took to create training content, shaving 30 hours off for each item. As staff became proficient faster, they minimized errors and improved customer interactions. A more intuitive workflow also decreased the number of support tickets raised by agents, boosting operational efficiency and employee engagement. In 12 months, Sentry saved over $950,000, which it allocated to growth-oriented activities.
Looking Ahead
Industry forecasts predict the digital insurance platform market will grow 12% annually through 2029. With DAPs, insurers have the ability to harness real-time data, to predict trends, customize products and offer personalized experiences at every touchpoint. This not only improves customer satisfaction but also strengthens internal processes, driving efficiency and accuracy across the organization.
By implementing a digital adoption platform, insurers can develop innovative solutions that address emerging risks and meet evolving customer needs.
