At this year’s InsureTech Connect conference in Las Vegas, insurance leaders and innovators gather to continue the conversation on digital transformation. Attendees and presenters alike share in the excitement for the future of insurance technology as they discuss AI, smart data, cloud, connected car and home, drones and other innovative platforms and tools. These innovative technologies play a big role in changing the insurance industry and allow insurers to add agility to their business and provide customers, agents and partners with personalized experiences.
ValueMomentum contributed to the digital conversation at InsureTech Connect by hosting a lunch workshop on Insurance Digital Transformation in Action. As part of the workshop, we invited analyst firm, Novarica, to share trends on digital transformation, and our client, Erie Insurance, to share tips and advice on their successful digital journey. The conversation was moderated by ValueMomentum's VP and Client Partner, Siva Pillai.
Martina Conlon, EVP Research & Consulting at Novarica, emphasized the need to leverage technology to create value in insurance. She pointed out that insurers are focusing on digital to streamline processes and improve user experience, with spending on digital projects beginning to match or exceed transformation efforts. Investment priorities include enhancements to both digital and data capabilities, with emphasis on digital over data in almost all functional areas except customer engagement. While investing in technology and exploring the opportunities available through technology is important, Martina advised insurers to be clear about the value they are trying to achieve through innovation in order to leverage technology successfully.
Following Martina, Ruben Fechner, SVP Applications & Support, and Tim Shine, VP, Commercial Lines Technology, of Erie Insurance shared their organization’s approach to digital. Erie’s focal point of investments in their digital journey includes projects to improve distribution, service, product mix and user experience. The company’s overall goal is to modernize their platforms, streamline their processes and product offerings, enable data-driven decision making and provide a customer-centric view. Currently, Erie is focusing on modernizing their platforms and streamlining policy issuance, endorsement and renewal process. The company is taking a phased technology approach to their digital journey and is focusing on incremental value of each phase.
Tim spoke about a recent project that is part of their digital journey – digitizing the sales, quote and bind process for agents. As part of the project, Erie worked closely with ValueMomentum to develop a solution that achieved a 50% reduction in time to market and an average 98.61% time savings in quote/bind processes. This solution was well received by their agency force and won awards in the analyst and partner communities.
Following in the success of this project, Erie is planning to take what they developed for Commercial Lines and apply it to Claims, Personal Lines and Life.
As seen from Novarica’s research and Erie’s success, digital transformation is not only necessary but also impactful to an insurer’s business. Whether an insurer’s focus is on core, data, experience or other capabilities, instituting your digital platform is key to enabling your digital strategies. Although it may vary from insurer to insurer, four essential components to a digital journey are:
- Simplifying and automating core capabilities
- Leveraging data for operations and analytics
- Having a digital platform
- Developing key features such as reusability of services, API-based architecture, rapid application development tools/platform and adoption or integration of a Cloud-based PaaS technology
ValueMomentum has expertise in these four areas and has helped many insurers, including Erie, leverage technology to build a digital platform that drives their digital transformation. Whether you are just starting your digital journey or is well into the process, we can help you develop or leverage the innovative platforms and technologies you need to bring success to your digital transformation. You can learn more about our digital offerings here.