Three Obstacles to Digital Insurance Adoption

Pamela Morgan, Insurance CIO Outlook | Tuesday, October 06, 2020

An effective digital transformation requires digital technology that enhances efficiency and is implemented across the operations and departments of the company

Fremont, CA: Most companies are embracing digital insurance and have started adopting digital agenda for the upcoming years by realizing the fact that being digital a critical business priority for CIOs. Digital as a business means creating better, integrated customer experiences across digital and traditional channels to build customer loyalty. Organizations can use digital platforms to enhance operations, maximize revenue, and lower costs. They can monitor data to improve analytics and automation and offer better customer-centricity as well as allow insights from data to direct new products suited for consumer needs. They can also implement new technologies to optimize legacy systems and provide a competitive edge and predict digital trends to create a future-thinking strategy. However, there are some hurdles preventing successful digitalization.

Here are three obstacles insurers encounter during their digital transformation journey:

Disruption from InsurTech:

As insurtechs continue to emerge, many will likely establish their own insurance companies and introduce a new competition line to the market. This threat has pushed traditional companies to become future-ready to stay ahead of the competition.

Top 10 Insurtech Startups - 2019Executing a Connected Ecosystem:

Insurers need to create a connected ecosystem that can support the fast-paced changes that digital transformation demands while delivering great experiences for customers, agents, employees, and other business partners. This will allow insurance companies to stay competitive as they provide consistent experiences that users demand. Adopting a new ecosystem combined with digital and physical components can seem like an enormous task and expensive, however, its benefits are extensive if executed well.

Digital Agility:

The need for insurance companies to become more agile and efficient has become essential to keep up with the industry's rapid changes. This is not confined to just one part of the company or the products and services but across the board. An effective digital transformation requires digital technology that enhances efficiency and is implemented across the company's operations and departments, in internal back-end and external and customer-facing portals.

See also: Top Digital Transformation Solution Companies

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