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Similar to Digital Insurance Transformation (20)
Digital Insurance Transformation
- 3. © TransInsure.
Digital technology is disrupting the Insurance business.
New business- and operating models have to be defined to
transform the traditional insurer into a Digital Insurer.
©TransInsure.
Digital Insurance - V1
3
- 4. Our customers are mobile, using
mobile devices to communicate
and share; We need to be DIGITAL
to continue our business, offering
Insurance and related services.
© TransInsure.
©TransInsure.
Digital Insurance - V1
4
- 5. Digital Insurance is offering Insurance products
and services to customers and partners using
digital technology.
Digital technology allows fast and easy
Insurance business and is inevitable to grow
profitable business in the future.
© TransInsure.
©TransInsure.
Digital Insurance - V1
5
- 6. Digital Insurance principles
Customer centricity
Products and services available on any device, anywhere, anytime
Full self service functionality available in online and mobile apps
All data real time available
Full automation of all Insurance processes
Straight Through Processing
Paperless processes
No manual workarounds
Social media integration
Fast time to market
© TransInsure.
©TransInsure.
Digital Insurance - V1
6
- 7. Service
Partners
Mobile/Online Devices/Apps
Phone – Tablet – Laptop – Desktop – ATM
Mobile/Online Devices/Apps
Mobile/Online Devices/Apps
Distribution
Partners
Phone – Tablet – Laptop – Desktop – ATM
Phone – Tablet – Laptop – Desktop – ATM
Digital Insurance
Company
© TransInsure.
Mobile/Online Devices/Apps
Phone – Tablet – Laptop – Desktop – ATM
Customers
©TransInsure.
Digital Insurance - V1
7
- 8. Customers
Individuals &
family
SME
Employers &
employees
Corporate
© TransInsure.
©TransInsure.
(Potential) Customers are all individuals, families, groups
of people, SME and corporate businesses that will
purchase or have purchased products.
The Digital Insurance Company (DIC) will provide online
portals and mobile apps for customers to purchase
products, self-service their policies and communicate
with DIC regarding products and services.
If necessary, for corporate businesses, straight through
processing integration will be established between the
corporate systems and the systems of the DIC. The DIC
customer portals will be integrated with the corporate
business employee portals.
The functionality available for customers:
Buy products
Renew and change/endorse policies
Claim notification & status updates
Service requests
Enquiries
Communication with DIC experts
- 9. Distributors
Agents
Brokers
Distributors are all partners, involved in selling insurance
products. Distributors vary from a 1 person agency to car
dealers, to global banks and broker organizations.
Depending on the distributor, different digital services
will be delivered by the Digital Insurance Company (DIC).
The DIC will deliver online and mobile applications for
the smaller distributors with extra services such as social
media integration.
Aggregators
For large distributors straight through processing
integration will be established between the distributor
systems and the systems of the DIC. The DIC customer
portals will be integrated with the distributor portals.
Car dealers
Distributors will have full self-service functionality
available in online portals and mobiles apps:
Banks
Affinity
Groups
Sales & customer management
New business and renewals
Portfolio management
Case management
Reports & dashboards
©TransInsure
©TransInsure.
Team management
- 10. Service
Partners
TPA’s
Workshops
Payments
Claims
adjusters
Road Tax
Others
©TransInsure
©TransInsure.
Service Partners are all partners providing Insurance
related services to the DIC. The partners provide data,
assessments, payments services, printing services, call
centers and processing services.
The Digital Insurance Company (DIC) will provide online
portals and mobile apps for Service Partners to
communicate with customers and DIC staff and submit
reports and assessments.
In case of data exchange and customers service delivered
by Service Partners, straight through processing
integration will be established between the systems of
service partners and the systems of the DIC.
The functionality available for Service Partners:
Underwriting and claim assessment
Renew and change/endorse policies
Portfolio management
Claim notification, status updates & payments
Communication with DIC experts
Functionality & data provided by Service Partners:
Road tax information & claims history
Customer verification
Payment through credit cards/Paypal/etc.
- 11. Digital Insurer
Management and staff of the DIC will have the same
access to online portals and mobile applications as
customers and partners. However these portals and
apps will have more functionality for the approval
processes, product-, customer-, distributor-, portfolio
and financial management, monitoring, reports &
dashboards. Some functionality will remain in the Back Office for security
and compliance reasons.
Management and staff will have all information needed
available anywhere, anytime and on any device and
will be able to bring or choose their own device
(BYOD/CYOD).
Marketing and IT will be responsible for the continuous
development, improvement and management of
online portals, social media integration, providing big
data analytics and mobile apps.
©TransInsure
©TransInsure.
The functionality available for DIC users:
Full self service portal/apps, Call center portals
Underwriting and claim portals/apps
Portals/Apps for Finance, HR, Product
management
Management monitoring and approval
portals/apps
- 12. Digital Insurance Back – End systems
The Back-End Digital Insurance System environment is
based on a loosely coupled component based IT
architecture. The architecture comprises of the
following components:
Enterprise Service Bus (ESB) for component integration,
external data exchange and partner system integration
Transactional database for data exchange with online and
mobile apps and partner systems
Policy management systems for all product lines
Claims management system
Customer Relationship management system
Product Management Systems and Product Rules Engine
Business Process Management System
Case management system
Business Rules Engine
Correspondence template and rules management engine
Document (content) management system
Finance Management System
Data warehouse for Big Data analytics
Management Information System/Engine
Access & entitlement management system
©TransInsure
©TransInsure.
Social media integration manager to push relevant data to
the transactional database for use in portals and apps.
- 15. IT IS THE END OF
BUSINESS AS USUAL
Brian Solis
Digital Insurance transformation is
changing the Insurance company from
a back-office administrative oriented
organization with an internal focus to
a client centric service oriented
organization communicating through
internet and social media.
©TransInsure.
©TransInsure.
Digital Insurance
Transformation - V1
15
- 17. ©TransInsure.
The transformation to a Digital Insurance Company will substantially change
the business model and operating model. The size of the change depends on
the speed of the market changes in the coming years, the digital strategy and
current readiness and capabilities of the organization.
©TransInsure.
- 18. Previous Strategy
Digital Strategy
Distributor centricity
Product focused growth
Single channel
Rigid organization
Process driven
Efficiency & cost reduction
Refine UW & claims guidelines
Continuous improvement
Customer centricity
Customer focused growth
Multi channel
Adaptive organization
Technology driven
Digital & social marketing
Create life time loyalty
Tailor made offers to customer
Fast digital innovation
Strategy
Transformation
©TransInsure.
©TransInsure.
- 19. Digital Principles
Previous principles
Distribution by agents
Customer has minimum
insurance knowledge
One product fits all
All applications to be
approved by underwriters
Reactive after sales support
Long time to market
1 - 3 new products per year
©TransInsure.
Business Model
Transformation
©TransInsure.
Digital sales, distribution and
service
Mobile apps and Online portals
available for everyone
Distribution B2B, B2C, B2B2C
Customer better informed
Products aligned with
individual customer needs
Focus on social influencing
Pre-underwritten products
Trust building
Cross & up selling
Data analytics and mining
1 - 2 weeks time to market
Social media integration
- 20. Previous principles
Digital Principles
Inaccuracy of information
Availability of real time
Insufficient service levels
information
Paper processing
Operating Model Full digitized self service
Processing centers/sourcing
capabilities
Transformation
Backlog management
Excellent service
3-12 months time to market
Straight Through Processing
Manual workarounds due
Paperless
to IT incapability
Streamlined and simple processes
Large organization with
Fast time to market
©TransInsure.
complex processes
State of the art IT architecture and
Bureaucratic governance
solutions
Lean organization & governance
©TransInsure.
- 21. ©TransInsure.
Organization transformation 1
Marketing will have a leading role in the Digital Insurance Company. Data of all
sorts of social and other media will be analyzed to improve the understanding of
customers and risks and push the right offer and the right time to the customer.
Product Management will be in charge of technical product specifications, product
management tool and underwriting. The role will change as the time to market will
be short and based on Marketing data more new products and product features
will be pushed to the market.
Sales & Distribution will reduce a little as more new business (simple products) will
be purchased online and on mobile devices directly by the customer.
©TransInsure.
- 22. ©TransInsure.
Organization transformation – cont’n
2
Operations will be reduced largely as processing and claims departments will have
less processing work due to straight through processing and automated business
rules replacing manual work. Furthermore the operational business will be more
efficient and effective due to the use of BPM, BRE, Case management, MIS and
Data management tools.
Finance will be reduced as financial processing will be STP automated, monitoring
and reporting will fully automated and reduce the manual work in Finance.
HR and General support will be reduced as less personnel is required in the Digital
Insurance Company.
©TransInsure.
- 23. ©TransInsure.
Organization transformation – cont’n 3
IT will face a major transformation from a reactive organization managing
inflexible back end systems to pro-active organization closely working with
Marketing to push the right technology innovation to the market.
IT will be reduced as part of today's work will move top the business, for example
product development will be done by Product Management with Product
Management Tools. Process improvement will be done directly by Operations in
the BPM/BRE/MIS/Case and data management tools.
IT technology budget will increase as more systems/tools are necessary to run the
Digital Insurance Business but this should not result in more IT staff. Staff profile
sill change from Back End system maintenance to technology innovation.
©TransInsure.
- 27. Transformation options assessment
©TransInsure.
Transformation approach
The market will not wait until an internal transformation is finalized, a long lasting
internal transformation with high risk of not delivering is not advisable.
A Greenfield approach where is a fast method to deliver Digital Insurance without
jeopardizing the current business and resistance of the current organization
Outsourcing is a good option providing the quality of the provider(s). Outsourcing
however needs a lot of management attention as it creates internal resistance.
A combination of a Greenfield, outsourcing and internal transformation is a good
compromise however it will take more time to finalize the transformation
©TransInsure.
