Are you constantly playing catch up? The insurance industry is going through a period of innovation and disruption, and the pandemic put these transformations into high gear. As a result, many insurance companies may find themselves falling behind. The programs that seemed satisfactory just a few years ago may no longer be adequate. To stay ahead of the curve, you need to make smart investments and buying decisions.
This five-step process can help you achieve and maintain a competitive edge.
Step One: Review the Available Technology
Even if you’re constantly hearing about the insurance industry’s technological revolution, you might be surprised by just how much progress has been made.
It’s not just talk. Modern technology makes it possible to leverage data, automate routine tasks, access programs through web interfaces and so much more.
Go in with your eyes wide open. It’s easy to be impressed – the level of advancement that’s been attained in recent years truly is impressive – but you need to make research-backed decisions if you want to stay ahead of the curve. Before you settle for anything, conduct a detailed review of the available technology.
Step Two: Assess the Competitive Landscape
Technology leaders and technology laggards can be worlds apart. Accenture’s Future Systems survey found that the revenue gap between leaders (those with scores in the top 10%) and laggards (those with scores in the bottom 25%) is growing. By 2023, there will be a 37% revenue gap, and companies that can’t keep up stand to lose $17 billion.
Of course, laggards don’t always realize they’re laggards. They’re investing in technologies, too. They’re just not investing in enough improvements – or in the right improvements – to get ahead.
You can’t stay ahead of your competition if you don’t know what your competition is doing. When you assess the competitive landscape, you need to be completely honest about how you stack up in various ways, big and small. It’s great if you take pride in your company and possess confidence that you deliver superior quality – but what about your weaknesses? Use benchmarks to obtain a realistic and objective view of your technological capabilities.
Step Three: Look Outside Your Own Industry
Right now, the insurance industry is changing fast, but this hasn’t always been the case. Historically, insurance has been slow to change. Even now, the industry lags behind other industries in many ways. If you really want to stay ahead of the curve, look at the emerging technologies being used in other industries.
For example, if you want to boost customer engagement, look at how online retailers and streaming platforms do it. User-friendly apps, data-fueled personalization, cloud-based access – there’s a lot that insurers can learn from these companies.
Step Four: Focus on the Big Picture
Accenture noted that laggards “tend to invest in technology in silos rather than investing in technology in a manner that transforms their operations as a whole.”
Everyone’s talking about investing in technology, but it shouldn’t be technology for technology’s sake. When you invest in new technology, you need to make sure your investments will yield the results you need.
Think about your goals. Are you trying to make underwriting more efficient? Improve the policyholder experience? Speed up claims? Then think about the investments that will help you achieve these goals.
To see real results, you may need to go big. It may mean switching to an entirely new platform. But in the long run, one big change can be much more productive that a series of piecemeal changes that end up making your processes more and more complicated.
Step Five: Consider Your Present and the Future Needs
If you’re constantly playing catch up, it can be hard to break out of the cycle. You invest in technology that meets your current needs, but by the time you’ve fully implemented it, you realize you need something else already.
The goalposts keep moving.
If you want to stay ahead of the curve, you can’t just focus on what you need today. You also need to think about what you’ll need tomorrow.
Are You Ready to Gain a Competitive Edge?
The Diamond Platform offers seamless partner integrations and continuous product enhancements. As a result, you get access to regular product updates and extended core system capabilities without interrupting your business. It’s how insurers can gain a competitive edge that stays sharp. Learn more.