InsurTech Part 3: Insurers and Digital Engagement
Mark Breading, partner at Strategy Meets Action, and Charlie Hanna, director of Hyland Software’s Domestic Insurance Solutions Group, dig in to this crucial phase of digital transformation.
Analyst Interview: Digital Engagement of Insurers
The second phase has been a very interesting one for us – the part of the process, the part of the transformation where the information exchange gets better and more appropriate. Secure where it needs to be available to those that needs it, particularly in the distribution and insurance process. When you talk to the clients that you worked with, what do you think are some of the biggest pain points they have when they are going down that path and trying to identify the places where to really start and focus.
We’ve seen that most companies are starting with their distribution network because this is still an industry that relies heavily on human intermediaries for distribution. Now certainly in some lines of business, there’s a move towards more and more direct – direct to consumer, direct to customer – kind of activities. But if you look at the numbers, the statistics, the vast majority of insurance is still sold through some kind of intermediary and in most cases, an independent intermediary.
So what that means is that those businessmen themselves running an agency or brokerage, if they don’t feel like they’re getting the right digital tools and they’re being able to do business, and/or interact smoothly with the carriers, they are going to take their business elsewhere. They can submit those applications, that business, to other insurers, other carriers. So that puts a lot of pressure on the insurers to really think about how to digitally enable their distribution network. They evolved from there, most insurers say that’s the first focus, but then of course, they want to provide digital capabilities direct to the customers, the policyholders themselves, and then think about how we really support that via being more digital inside the enterprise.