Digitalization isn’t just the future of insurance, it’s the present, as shown by the rapid digital growth the industry has seen over the last few years. The increased investment in IT and reliance on the benefits that it brings have had a profound impact on the industry as a whole. It’s estimated that almost $300 billion will be spent on IT by the insurance industry over the next 12 months, with 31% of that going on software alone. While this heavy investment has, of course, meant massive benefits to both insurers and the insured alike, the recent reliance on digital processes has not come without its issues as well.
One of the main advantages that increased digitalization has given to the insurance industry has been improved accessibility. Online claims processes and platforms have meant that many insurers now offer an easier way for the majority of customers to log insurance claims. These online portals not only simplify the process by acting as a one-stop shop for all claims documents to be logged, but have also sped up the process of making a claim. This has addressed two of the biggest concerns that many people have had with insurance claims in the past—simplicity and speed.
The immediate impact this digitalization had on one element of the insurance process quickly led to further investment across other aspects of the industry. Automation has become more and more prevalent throughout the industry. Things like automated fraud detection and process automation have meant less risk for insurers and less resources and time invested in false claims. AI is increasingly being leveraged to help predict customer behavior and to address their needs proactively. The industry has also begun to leverage advanced analytics more in order to better address the data-driven nature of the industry and ensure that it moves with the times.
All of this has meant a smoother, more streamlined insurance process that is available to customers when, where, and how they need it. However, the journey to digitalization has never been without its speed bumps along the way.
As with many forward-thinking ventures, digital modernization in the insurance industry relies on you putting a healthy amount of trust in your machines. With so much of the insurance process now online, any bugs or failures in your software could be catastrophic for your customer base and, as such, for your business. Ensuring your systems remain reliably operational and minimizing downtime are more important than ever to protecting your revenue and your reputation.
The other increasing concern the digital age has heralded in has been security. Recent tech advancements, such as AI, have led to more complex and sophisticated cyberattacks that require new levels of security expertise from software support vendors to deal with. This, plus the previously mentioned online claims platforms that has led to an inevitable increase in customer data online, raises the need for reliability within software security to protect customer data at all costs. GDPR is a cornerstone of the insurance industry in the age of the internet, and it means that trust in your software extends to more than just your business— your customers need to trust it too.
Digital modernization is a vital part of your business building for the future, but doing so without the proper scaffolding in place will lead to problems. The best approach is to build on the foundation your business already has in place. Origina’s unique approach to technical debt lifecycle management means we can keep your trusted systems going for longer; leading to less downtime, less expensive upgrades, and less potential security risks that inevitably come with such a consistent turnover of software.
The increased reliance on IT in the insurance industry has meant you need software maintenance and support that you can rely on, and Origina’s years of expertise in software support and security can offer you that. We tailor our support to your needs and ensure that you keep control of your own IT roadmap so you can trust your systems to work when and how you need them. So don’t take the risk, get maintenance and support you can rely on by reaching out to Origina.
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