Covid - a catalyst for digital transformation in the insurance sector

How covid helped escalate digital transformation in the insurance sector
Pre-pandemic, digital transformation in the insurance industry was accelerating.

When the pandemic hit, the world moved online, and the pace of change accelerated dramatically. The growing trend for online shopping began to expand from retail into other sectors, such as financial services, forcing companies to quickly respond to customer demands.

Digital transformation became top of the agenda.

Customer Experience
One industry which has seen rapid digital transformation as a result of the pandemic is the insurance sector. Improving customer experience has become a major strategic push for insurance companies. Digital technology is being employed to streamline handling customer queries and complaints and to deliver important documentation. The purchasing process is moving online, where the process has to be streamlined, intuitive and fast. 

The industry understands that the customer journey is paramount to success, and those that get this right will win in this competitive landscape.

A digital future
The pandemic caused an unprecedented and extreme change in consumer habits that no one could have predicted. Some of the measures insurance firms put in place were ‘quick fixes’ – patches to services that got around a short-term issue.

The challenge facing the insurance industry going forward will be to turn those short-term solutions into long term strategies, underpinned by robust technology solutions, with changing customer demands at the centre.

It’s not just about technology
Yes, digital transformation is about innovation in digital infrastructure, cloud, cyber security, development of ERP systems, data and technology. But, ultimately, the tech is just the enabler.

What will really determine the success of a digital transformation programme is people.

Businesses will need the right mix of talent, sponsorship from leadership, buy-in from users and a willingness across the business to embrace and embed change.

Interim programme managers can play a key role in bringing together multiple stakeholders and navigating departments through the process. They have the gravitas to influence the leadership team, can hit the ground running and draw from a rich bank of previous experience.

Workforce planning
Currently, there is a shortage of talent across the digital transformation and change programme lifecycle. The recent changes in IR35 haven’t helped matters when it comes to bringing in contract teams.

However, a good recruitment partner will be able to advise on workforce strategy, talent mix – permanent, contract and interim resources, hiring trends, market demand and market rates. They will have a bank of ready-to-go talent at their fingertips and a deep knowledge of the key players in the market, even if they’re not active. Boston Hale has a team dedicated to change and transformation, with a network of talent across all levels and disciplines and can help you plan and hire your digital transformation team.

Change is accelarating, like it or not.
We know, from conversations we’ve had with CIOs and CTOs in the insurance industry, that the covid pandemic has accelerated the pace of digital transformation. KPMG has done further research in this area.

“It took a pandemic to force many insurers to speed up their digital agendas. Indeed, according to a recent global survey of insurance CEOs conducted by KPMG International, COVID-19 has been the digital catalyst insurers so dearly needed.

The change has been nearly universal. Eighty-five percent of Insurance CEOs say COVID-19 has accelerated the digitisation of their operations and the creation of next-generation operating models. Eight-in-ten (78%) say it has turbo-charged progress on the creation of a seamless digital customer experience. A similar number (79%) says it has brought new urgency to creating new business models and revenue streams”

Amid the uncertainty created by the pandemic, one thing is for sure. The digital revolution is gathering momentum.  Demand for quality digital and change professionals is already outstripping supply, so companies that want to stay ahead of the game need to secure talent sooner rather than later.  

If you would like to discuss digital transformation or need any help please contact our head of Change & Transformation Guy Stubbing

We used these sources as references: KPMG, EY