By FintechOS · October 12, 2021
7 minute read

Does your insurance digital transformation ever end?

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Key takeaways

  • To keep up with changing technology, you can’t just make one digital transformation
  • You need to embed digital iteration into your insurance organization culture
  • Our platform can grow with you to offer the tools you need to be agile

Digital transformation was once an industry buzzword. Every company was planning their one, big push to upgrade all their systems to compete in the digital age.

Insurance companies had been around for hundreds of years, and essential data was stored across various legacy systems that weren’t compatible with each other, or modern, cloud-based technology. The leap to the internet, e-commerce, and eventually, artificial intelligence (AI) was rapidly becoming a mandatory step.

According to McKinsey, a large incumbent could more than double profits over five years by digitizing existing business.

Challenger insurers starting out with a fresh perspective and a digital toolset, on the other hand, were showing a clear advantage over incumbents. That was only made more apparent by the pandemic.

Digital-first insurers actually found their profits rising under lockdown. Lemonade, for example, saw a nearly 30% increase in revenue in 2020 vs 2019. Meanwhile, Deloitte found 48% of insurance executives felt the last two years had “showed how unprepared our business was to weather this economic storm”.

Yet, as a planned return to normality after the pandemic seems increasingly naïve.

It’s becoming clear that a single digital transformation isn’t enough. You need to embed a culture of constant digital iteration to navigate through whatever the future holds.

The final FNoL

It was once thought that making your entire claims and onboarding process a digital exercise was a one-and-done process. Buy the right systems and upgrade your process and it was believed you could be ready for the 21st century.

Simply moving your onboarding process online, however, doesn’t solve all your problems. An IMS survey found 77% of respondents were motivated for a digital transformation by improving customer experience. This seems like the right strategy, since 41% of customers would, apparently, switch provider due to a lack of digital capability.

To keep up with the competition, you need to be constantly outdoing them with a better customer journey, a better user experience, and better technology. Yet, how can you keep investing in digital transformation after digital transformation to keep up with every new challenger insurer that comes along?

A KPMG survey suggested a lack of insight into the future of operational scenarios was the biggest challenge for digital acceleration. That’s without even considering global events.

The insurance industry was born in the chaos caused by the Great Fire of London, and has been changed repeatedly by events from the Great Depression to 9/11. The only difference in recent years has been the accelerating pace that such events are arising.

With economic turmoil – from Brexit to climate change – still disrupting the market, there’s only one possible option for dealing with the pace of change: increasing your firm’s agility.

Agile development for agile insurance

In 2001, 17 respected software developers met in Utah to formulate the Manifesto for Agile Software Development. The concept was formulated in response to the accelerating pace of software change.

Internet technology often develops and changes so quickly that software is outdated long before it’s been programmed, tested, and released to market. If you spend two years developing an app for the latest iPhone, there may be a whole new iPhone with new features by the time you release it.

The solution to the problem was to create a new methodology of software development that allowed for the project to adapt instantly as needed. Essentially, the idea was to make the concept and development of the software agnostic of the platform it was being developed for.

This is what insurance now needs to do. You need an agile platform that can adapt to whatever technology comes along and whatever cultural changes happen in the world that could impact the insurance industry.

The agile platform you need

This is why the FintechOS Northstar platform is designed to adapt to your business, grow as you do and change as technology and the world does. Our low-code system can be tailored however you need it to be without advanced development knowledge, but there are also out-the-box options available too.

Automation blocks

Northstar can be constructed from different automation features. Choose what tools and functions your platform needs and connect them together however you want.

Think of it like choosing a suit. You decide whether you want a smart-casual open-collar shirt and trousers; a full-three-piece with handkerchief to match your tie; or a tuxedo. You choose what features and parts are right for the occasion and support the impression you want to give to your customers.

This will include security features like optical character recognition (OCR) and artificially intelligent (AI) liveness detection. You’ll also be able to automate risk assessment and embed a rating and scoring engine. You can even build your marketing strategies and personas directly into your platform.

Accelerators

To make it even faster for you to get your new, digital products to market, Northstar comes with ready-made propositions to launch as soon as you’re installed.

Once you’re up and running, you can create your own products rapidly, without the need to rely on your technical teams to build them for you. This will make sure your time-to-market is short enough that you can respond to the needs of current events in the industry.

Low-code customization

Everything in our platform can be configured without any advanced coding knowledge. With our drag-and-drop workflows, you can create products and end-to-end propositions from out-the-box parts yourself. You don’t need to go to your developers to get a product to market any more.

When a new form of insurance begins to rise, such as the parametric policies that have been created in response to COVID-19 turmoil, you can have your own versions ready to go to market immediately. When you see a gap in the market, you can create a custom offering for those clients without having to code the product into your system.

This will free up your tech team’s time to creating advanced AI features and customizations using our platform that will revolutionize your customer journeys. Your competitors will be left wondering how you have time to do it all.

Digital iteration rather than digital transformation

To make your insurance more personal, smarter, and faster, you need access to customer data at every stage of their journey with you. FintechOS Northstar is designed to be customer-centric.

Our platform lets you build products quickly, provide market-leading customer experiences, and deliver personalized interactions. Northstar gives you access to pre-built functionality, configurable customer journeys, and low-code innovation.

All of this will allow you to stay ahead of the competition when it comes to digital experiences. Far from buying a platform to support a one-off transformation, you’ll be installing agility and flexibility into your organization.

Northstar can be tailored to your needs, but also adapted to grow with them. As new technology becomes available, we’ll add new tools and features for you to use, and you’ll benefit from our community of Northstar adopters, providing support and integrations for each other to use.

To find out how Northstar can set you on an endless journey of digital iteration, rather than just a one-off digital transformation, book a demo.

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