Need for Robust Digital Transformation in the Insurance Sector

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Need for Robust Digital Transformation in the
Insurance Sector
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Need for Robust Digital Transformation in the
Insurance Sector
In this era where Digital Transformation is
happening at warp speed, people from every walk
of life are turning into digital experts. While
the benefits of engaging in a digital
transformation are obvious and unending, it is
not without challenges and CIOs face the
majority of them. As digital initiatives
encompass all parts of the organization, CIOs
need to develop solid working relationships
beyond the C-suite to implement the digital
transformation plan. The CIOs also need to spend
more time on cross-functional collaboration,
listen for what the biggest challenges are from
various business functions, and also need to
communicate how digital can solve those issues in
a meaningful way. The other challenge is to find
talented people who can implement their plans in
the most effective manner. Additionally, it is a
known fact that the insurance industry tends to
function along outmoded lines, and insurance
companies with deep roots have been slow to adopt
digital tools and business models. Obsolete
organizational structures and legacy technology
have also obstructed the rate of change. On the
other hand, rest of the world and other industry
sectors, such as retail, banking and travel, are
already staking their claims in futures digital
landscape. A few specific challenges that CIOs
face are Big data analytics and business
intelligence Improving IT efficiencies and
lowering costs
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Need for Robust Digital Transformation in the
Insurance Sector

• Enterprise risk management fraud
  detection
• Complying with ever-widening regulatory
  landscape
• Legacy modernization, process and systems
  improvement
• Adoption of disruptive digital technologies
  including SMAC
• Performance, security and privacy of
  applications and data
• Customer retention by ensuring enhanced
  customer experience
• In such a scenario, CIOs of Insurance firms, must
  be attentive to the fact that they need to
  attract and retain digitally empowered todays
  customers, if they intend to stay a step above
  their peers and competitors. According to a
  recent survey, 79 percent of consumers say that
  over the next few years, they expect to use
  online resources for insurance purchases.
• Components of a Robust Digital Transformation
  Plan
• One of the significant changes that insurance
  CIOs are noticing is that consumers are serious
  about online transactions. Technology savvy
  consumers are interested in getting insurance
  rates online.  Industry leaders within life
  insurance have begun to make major pushes towards
  digital transformation. For example, global
  insurance company MetLife has announced a major
  initiative to become more digital, and they are
  currently investing 300 million a year in their
  digital transformation plans.

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Need for Robust Digital Transformation in the
Insurance Sector

In going digital, companies can provide a more
streamlined, seamless experience to their
customers. However, the digital strategy needs to
be well-defined. A robust digital strategy has
several specific components, and understanding
these components will provide CIOs the reasons to
invest in the digital transformation. Read Full
Blog at https//www.cigniti.com/blog/need-for-di
gital-transformation-in-insurance-sector/
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