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ASG Perspectives

Blog > September 2019 > ​Partner Post: Digitally Transforming InsurTech: Part 2

​Partner Post: Digitally Transforming InsurTech: Part 2

Insurance companies are facing the competing pressures of improving profitability and delivering world-class customer service. They must manage growing amounts of information from a wide range of sources while complying with ever-increasing regulations. With so many priorities in play, it can be difficult to determine where to focus your resources and innovation.

 

 

In my last blog post, I discussed two ways to fuel growth in the highly commoditized insurance market. Here are three more strategies that companies can use to gain a competitive edge.
 
Improve New Policy Onboarding Time
 
A few years ago, one of Zia’s customers came to us with a problem: they were looking to hit a growth goal but just couldn’t get there. They were knocking it out of the park year after year with record sales, but they couldn’t get their current customers to renew. This meant their growth rate was flat when it should have been climbing all along.
 
Instead of looking at their renewal delivery process, we looked at their new client onboarding process.  Similar to many of their competitors, this company did close to 60% of their business in the fourth quarter of every year, because the majority of their customers renewed every January 1st.
 
As we dug deeper, we realized that when onboarding a new customer—depending on what lines of coverage were being setup—as many as 12-15 systems of record across five to eight different business units needed to coordinate information before the process was complete. With such a large volume of new business coming in at once, and so many systems to coordinate, delays were inevitable. We then discovered that many customers with January 1st effective dates weren’t seeing a first bill or a copy of their policy until April 1st. Needless to say, this insurance company wasn’t starting off on the right foot with a lot of their new customers. When your touch points with your customers are typically limited, making a good first impression is key to renewing a policy.
 
Utilizing insurance document automation, you can streamline your onboarding process so that when large amounts of new business come in, you’re able to handle the expanded load and get your customers the information they need. That way, you don’t end up losing them at renewal. Migrating your information to fewer systems can increase your revenue and keep customers coming back. See how Zia helped one insurance company migrate 10 million documents in just seven days in this case study.

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Automate the Claims Process
 
Yesterday’s insurance companies have targets to meet their service-level agreements in order to avoid fines from the insurance commissioner. Today’s top insurance companies realize that simply avoiding fines isn’t enough to satisfy their customers.
 
Slower-moving insurance companies are utilizing multiple claims systems that don’t talk to each other. Many times, these claims systems don’t even have similar user interfaces, so training new claims examiners takes longer.
 
These companies are still opening mail with claims information manually or printing off email attachments just to scan them back into their system of record to submit and start a claim. This can mean it takes days before a claims examiner even sees a document related to the claim after the insurance company has received the information.
 
Additionally, these insurance companies are using claims systems that are unable to generate reports robust enough to keep self-insured customers happy or attract new self-insured customers.
 
Today’s top insurance companies are utilizing federated solutions to provide a unified interface for all their claims needs. They are able to display information from multiple claims systems and make changes back to those claims systems depending on the status of the claim. They also have comprehensive reporting for the tracking of all their key performance indicators within their claims department. Many customers have even done document ingestion automation. This solution took one of our customers from a document ingestion cycle of two days down to 15 minutes!
 
Discover Modern Ways to Work with Legacy Insurance Systems
 
Yesterday’s insurance companies are beholden to technology from 20 years ago that they just haven’t found the funding to replace. It’s that billing system that won’t display the credits they’ve applied until the next business day. The eligibility system that requires all manual data entry and causes policy onboarding to take an additional 24 hours. The multiple broker commission systems that are needed because each system doesn’t recognize all the various policies that their company sells. The policy generation system that will not, under any circumstances, allow custom legal language.
 
Replacing these systems is a gigantic project for small departments and doesn’t always have the return on investment that would allow it to become funded. Not to mention that training new or current employees to use these systems is expensive and time-consuming.
 
Today’s top insurance companies are utilizing solutions that provide a simplified, unified user interface that not only displays the relevant information from these green-screen, mainframe systems, but will also make the necessary changes in those same systems. These solutions integrate with existing tools and core insurance systems to increase productivity and user adoption and to enhance governance. Using multiple technologies eliminates the need for manual workarounds, so you can complete the work that needs to get done instead of hoping your manual workaround will get the job done eventually.
 
We recommend an objective assessment of your department or insurance company to see where you can reduce redundant work and streamline your current business processes. Whether you’re in life, P&C and specialty insurance, reinsurance, applications, underwriting or claims, automation solutions will improve your bottom line.
 
To learn more about how ASG and Zia Consulting can support digital transformation in InsureTech, watch our on-demand webinar, Digitally Transforming InsurTech: Disruption, Innovation and Modernization, here. For more information on the capabilities you need to target costly and complex document processing tasks to deliver a rapid ROI, check out ASG’s Mobius Content Services solution (Mobius) product page here.
 


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