Deloitte, while quoting findings from Pew Research Centre, highlights some valid industry transition points in its 2022 Insurance Industry Outlook. The company stresses the fact that customer engagement must be supported via digital means because US consumers are shifting from traditional media channels – 56% of US adults watched television in 2021 compared to 76% in 2015.
When zooming out from this statistic, we’d notice that such radical changes, including the changing expectations of policyholders, are pressurizing insurers worldwide to catch up. To achieve that, insurers must consolidate their IT systems and modernize the way they deliver value – to both customers and employees.
This is particularly true for insurers operating in the West, where advancements in technology usage are redefining the way insurance is bought and sold. According to McKinsey, technology fields like applied AI, distributed infrastructure, future connectivity, automation, and trust architecture are having a major influence on policies under personal P&C, commercial P&C, and life and annuities segments.
Indeed, digital transformation seems to be the cornerstone of insurance operations, meaning that the industry must naturally become more agile, efficient, and customer-focused. However, this is not an easy task to accomplish. Insurers’ IT needs to become more sophisticated and integrate to greater levels than ever before.
That’s precisely what ServiceNow Financial Services Operations (FSO) is here to help with. But before we dive into the solutions, let’s review the biggest challenges that inhibit operational efficiency in the insurance sector.
Challenges that Insurers Face
As insurance businesses move their operations online, a lot of their operating systems are left in the past. They are not scalable or flexible enough to keep up with the changing IT landscape and customer needs. More profoundly, insurers face the following challenges that require immediate attention:
Policyholders now increasingly expect seamless customer service
The future of insurance arrived faster than anybody expected – courtesy of the Covid impact. And that “future” is fast, focused on the customer, and powered by digital technologies.
According to PwC’s survey, 41% of the policyholders in the post-pandemic era believe they’d switch insurers if the digital capabilities facilitated by their carrier are not on par with their expectations.
As a rule of thumb, insurers must keep in mind that no matter the size of their business and the number of covered lives, the customer is at the heart of the business. Therefore, insurers must anticipate the expectations of their customers and deliver them in a seamless way. As such, customer service must work in tandem with insurance solutions, helping customers make better decisions and, ultimately, saving both time and money.
Claims management needs streamlining and data backing
The data volumes keep proliferating, and service bodies are, as of yet, unprepared for it. Using data to drive better claims resolutions and smarter decisions on policyholders and premium is a must.
However, the collection of data at various touchpoints – or conversion points – has been unstructured until now. As such, insurers cannot leverage this data to their advantage.
Identity frauds and cyber-threats are increasing
In 2021, Federal Trade Commission (FTC) received 5.7 million security complaints, up from 4.9 million and 3.4 million in 2020 and 2019, respectively. Out of these, 49% were marked as cyber-fraud and 25% as identity fraud.
As all industry sectors face evolving cyber risks, the insurance industry is no exception. Insurance companies are increasingly finding themselves at risk of cyber-attacks and fraud, and part of the problem is a lack of attention to cybersecurity measures and tools.
It’s hard to manage compliance and evolving regulatory landscape
The relentless need to comply with evolving regulations makes operational compliance challenging. There are a lot of moving parts to keep in check, including those related to data, technology, and compliance domains. As such, insurers can hardly identify the right systems and people to improve their compliance scores.
Reasons Why ServiceNow FSO is Ideal for Insurers
ServiceNow FSO helps insurers easily navigate these challenges by harnessing the following capabilities:
Unification of back and front offices
Siloed back office and front office processes have been the bane of insurers. Operations are essentially spread across various bodies, including service, sales, and claims. This leads to a lack of standardization and data inconsistency in the departments where data resides.
ServiceNow FSO counters this ailment by unifying front and back offices via a single system. It combines operations, management, communication, and compliance in one unified, collaborative environment.
Omnichannel engagement for solving complex policy servicing challenges
FSO helps cultivate a more dynamic and responsive service delivery by allowing holistic visibility across the comprehensive range of insurance operations. This way, insurers can see what’s happening in any given process and work with front and back-office teams to find solutions accordingly.
Specifically, FSO allows insurance companies to empower their distribution network with consistent data. This, in turn, keeps the distribution partners on the same page, making omnichannel engagement a reality.
Agent productivity and efficiency
The facility of an intuitive agent workspace, guided decisions, AI and ML support, knowledge management suite, and intelligent workflows in FSO lighten up a load of agents and increase their productivity by delivering them with the right information at the right time.
Easy automation with low-code functionality
ServiceNow’s App Engine empowers citizen developers to develop and deploy applications quickly. The integration with the underlying business processes and use of a low-code system help create and deploy highly customizable apps. This increased agility makes for an improved end-to-end experience for policyholders.
Self-service capability for distribution partners
Enabling distribution partners with self-service capabilities allows for reduced operational costs, lower churn rate, and accelerated expansion. This, in turn, creates a win-win scenario for all parties involved and seeks to strengthen ties between insurers and policyholders.
Process controls and visible audit trails for improving regulatory compliance
Facing the constant hassle of audits, insurers should leverage FSO to establish more streamlined and consistent process documentation and improve their regulatory compliance score. This way, insurers are better equipped to align themselves with evolving regulations.
In a Nutshell
ServiceNow FSO for insurance companies helps deliver what the stakeholders, including policyholders and distribution partners, need. The use of a single platform, a single view of data, and unified processes via automation help insurers bridge the gap between customer experience and insurance solutions. Ultimately, this drives growth and leads to improved results.
Leverage the power of ServiceNow FSO by scheduling a demo today.