In this day and age, talking about going digital seems almost outdated, as people have entire worlds in the palm of their hands and access to information like never before. Yet, taking organizations and larger processes to the digital realm can prove challenging for companies when the foundational pieces are not squarely in place.
When Legal & General America launched the Horizon experience in 2019, it was one of the first digital platforms in the life insurance industry, so the work didn’t come without its hurdles, challenges and lessons. They say to start at the very beginning, as it’s a very good place to start, and Julie Andrews is rarely wrong. So, to make a company-wide digital transformation as easy at 1-2-3, it’s time to go back to school for the ABCs.
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A: Assess the marketplace
Before any journey, it’s best to get the lay of the land. Companies don’t need to pull out an old Rand McNally, but they do need to see where things stand in their own industries.
The U.K. has been implementing automation into underwriting and applications since 2012, well before the U.S., which seems backward given that Silicon Valley is in the States and acts as the beacon for technological advancements. But when it came to life insurance, innovation started across the pond.
In 2017, LGA bought a product that was part of a digital suite but wasn’t actually automating underwriting. The technology was starting to exist, but being able to build that same technology in-house would afford more flexibility and customization based on what advisers and applicants wanted. The technology also could turn a life insurance company into a technology company.
Yet the U.S. is vastly different from the U.K. Bringing the technology over couldn’t be a simple copy/paste solution, given the differences in regulations, technologies available and consumer behaviors.
When it came to consumer behaviors, the landscape was shifting even more to “I’ll do it myself,” or at least wanting the illusion of autonomy. The pandemic escalated this in 2020, forcing people to do things themselves or digitally, as agents couldn’t make the same house calls. But the relationships that agents and advisers cultivated were not wasted, they just took a different form. Whether an applicant is filling in a form next to an agent or simply has the agent on standby for questions, those relationships can be strengthened with the right digital tools in place.
So the assessment was that the landscape was ripe with opportunity.
B: Balance Technology With Business
As the saying goes, don't judge a fish by its ability to ride a bicycle. The same can be said for any digital transformation. The technology developed and deployed must serve a business purpose, or it’s as useless as a bike at sea.
When technology is built in silos without understanding the business, companies can tout amazing advancements but see little use and in turn, negligible progress on key performance indicators (KPIs) and return on investment (ROI). There needs to be in mindset, toward becoming a technology company that knows insurance. The issue isn't just about having the best coders and developers in the room. The key is seating them side by side with the best people in the business, from underwriting to distribution. Horizon was developed without intense technology jargon; instead, it was discussed as a solution to problems actual LGA employees and clients were facing. Instead of bringing IT to business departments, bring the business to IT and meld them.
The main pain points the LGA team was to solve for were cycle times, reducing Not in Good Order (NIGO) rates and getting policies in more hands. When IT and operations, underwriting and distribution worked together, these KPIs were exceeded. In the first five years of Horizon, cycle times have decreased substantially to about 15 days (from more than 60). 90% of applicants finish the application within 24 hours of starting it, which allows advisers more free time and gets them compensated quicker. LGA also saw NIGO rates go from 38% to 2%, reducing the amount of follow ups for both internal and external parties. And, highlighting the main goal of any life insurance company, once Horizon was implemented there were 50,000 instant decisions from 2019 through 2023, and the 100,000th instant decision occurred in June 2024, so the pace of production and acceleration doubled in less than a year.
A balance was struck.
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C: Commit to a growth mindset
Another C here could simply be challenges. Transformation isn’t as easy as butterflies make it look; everyone remembers being a teenager and how awkward change can be. But leaning into the challenges and committing to a growth mindset will set an organization apart.
When it comes to agile methodology, the shift creates more ownership, which can empower team members -- but only those team members who aren’t afraid to make mistakes. It’s okay to make a mistake if you learn from it. And just because something doesn’t get rave reviews doesn’t mean it’s a mistake. It may just not fit the purpose. The bike shouldn’t be upset the fish doesn’t like it.
LGA was lucky in that its leadership committed early on to a growth mindset, which afforded those creating the technologies the opportunity to A/B test what worked and what didn’t and move on to the next issue.
Once these building blocks are established, companies can create customer and partner experiences that haven’t been imagined yet and do so successfully. Whether it’s a full digital transformation or implementing new technologies here and there, follow the ABCs, and it’ll be easy as 1-2-3.
