This blog was co-authored by Perficient’s Insurance Principal and expert: Brian Bell
As we step into 2024, the insurance industry faces significant transformations driven by technological advancements and evolving customer expectations. Let’s explore the key trends reshaping the insurance landscape and how they are set to redefine the industry’s future.
1. Platform Modernization: Enhancing Efficiency Across the Value Chain
Organizations are actively embracing artificial intelligence (AI) and cloud technologies to streamline operations and gain insights. Cloud computing stands out as the dominant technology, underscoring its crucial role in powering an organization’s infrastructure and scalability.
- Leveraging cloud technology for streamlined operations and enhanced scalability.
- Harnessing data insights for informed decision-making and actionable analytics.
- Expanding ecosystems through seamless API technology integration and enhanced connectivity.
- Prioritizing transparency to meet evolving customer expectations and enhance client experiences.
- Utilizing artificial intelligence offers insurers unique decision-making throughout the value chain to create differentiation.
A Fortune 500 company needed to transform its technology landscape and modernize legacy applications in a structured move to the cloud. We helped the insurer increase resiliency and agility, lower the total cost of ownership, and transform the delivery and upkeep of software solutions.
2. Operational Efficiency: Digitization and Automation
Operational efficiency remains a key focus area for insurers, with digitization and automation driving fundamental changes in how insurance processes are managed. Digitizing functional processes can lead to significant cost savings and efficiency gains. By breaking down operational silos and enabling seamless data flow, insurers can enhance agility, improve decision-making, and deliver personalized experiences to customers.
- Utilizing digital tools to break down operational silos and facilitate data flow.
- Focusing on tailored customer experiences to enhance engagement and satisfaction.
3. Document Digitization and Data Fabric: Empowering Accessibility
Document digitization and the establishment of robust data fabrics empower insurers with comprehensive data records and accessibility. By digitizing documents, insurers can reduce expenses associated with physical storage and streamline information retrieval processes.
- Lowering costs related to physical storage and information retrieval.
- Building a robust data fabric to ensure trust, availability, and accuracy of data records.
Success In Action
Our client routinely receives insurance claim, policy, and other third-party data from partners and needed an automated and efficient way to extract and store data from these documents. We used Syntex and Microsoft Power Platform’s AI Builder to automatically extract, inspect, and tag documents with metadata. We also created Power BI reports for easy reporting. The solution streamlined document processing and simplified partner data submission. This new process led to a consolidated database of more accurate claims and policy data.
4. Online Payments and Embedded Insurance: Meeting Consumer Expectations
In response to shifting consumer preferences, insurers are increasingly embracing online payments and embedded insurance solutions to meet evolving customer expectations and enhance convenience.
With the rise of digital transactions, investing in secure online payment platforms facilitates seamless premium payments and claims processing. Embedded insurance represents a significant opportunity for insurers to expand distribution channels and reach new customer segments. By integrating insurance products seamlessly into existing digital ecosystems, insurers can enhance customer engagement and capitalize on emerging business opportunities.
- Embracing online payments to cater to the growing preference for digital transactions.
- Capitalizing on embedded insurance to enhance convenience and expand distribution channels.
5. Connected Insurance Ecosystems and Personalization at Scale
Connected insurance ecosystems seamlessly integrate various aspects of the industry, enhancing operational efficiency and customer satisfaction.
Leveraging advanced analytics allows insurers to gain insights into customer behaviors, leading them to prioritize the delivery of tailored experiences at scale. This strategic shift underscores the role of partnerships and technologies in reshaping the future landscape of the insurance sector. Through fostering internal and external collaborations, insurers can create robust connected ecosystems that redefine industry standards and elevate customer engagements to new heights.
- Fostering internal and external partnerships to create connected ecosystems.
- Leveraging operational data to deliver personalized experiences at scale.
Driving Real Results
Our client sought ways to improve its feedback processes to more accurately collect and respond to feedback, both internally and externally. We implemented artificial intelligence and natural language process solutions to analyze feedback across multiple channels. The system then accurately identified feedback across claims, sales, and internal employees. Through this implementation, the client was able to decrease feedback response time by 98% and streamlined the overall feedback process.
Going Forward: Paving Success for 2024
As the industry progresses in 2024, one thing remains clear: embracing innovation is non-negotiable. Whether through platform modernization, operational efficiency enhancements, or personalized customer experiences, insurers must remain agile and forward-thinking to stay ahead.
By embracing these trends and leveraging technology to its fullest potential, insurers can not only thrive in the digital age but also revolutionize the way insurance is perceived, experienced, and delivered.
Are you prepared to embrace the future of insurance?
We invite you to explore our insurance offerings or contact us today to learn how we can optimize your insurance practice.
