Article based on a presentation by Tavio Roxo, CEO of OWLS Software, at COVER’s recently held TechFest2023
The insurance industry has come a long way from the old paper-based processes that were heavily reliant on manual labour. Technology has played a significant role in making the insurance industry more efficient, convenient, and cost-effective. However, the question arises, is technology just an enabler in the insurance context, or can it be more than that?
According to Tavio, technology is an enabler in the short term, but if approached with a bigger vision, it can be more than that. He emphasizes that utilizing technology effectively can make consistent engagement across various stakeholders, from policyholders to intermediaries, leading to efficiencies and cost savings.
However, the challenges remain, primarily focused on data. Getting the data right is essential to getting everything else right. If the underlying policyholder data, including benefits and everything mapped correctly, then automating the various operations is an easier task. But if you get the data wrong, then it becomes as friction filled as if you were not using any technology.
Moreover, Tavio points out that many insurance companies have formulated a lot of their business processes based on the technical restrictions that existed at the time. The introduction of new technology enables them to streamline a whole bunch of other areas within their business and control the digital journey of their clients with their organization through a digital platform.
OWLS™ Insurance Software
Proud providers to insurance companies, UMA’s,
administrators, intermediaries and financial services companies.
However, often the tech is already out there, but the world does not want to adapt, for whatever reason, to that new technology. It is sometimes wonderful tech, but people do not want it. So, picking the right technology to adopt becomes a difficult and tricky problem.
On the question about allowing the customer to choose how they want to interact, or even halfway through, decide to change their minds and swap over to a different route of interacting. Tavio responds by drawing a distinction between the insurer space, the UMA space, and the intermediary space. Different considerations must be considered depending on which stakeholder you are.
In the intermediary space, things get complicated when you are a multi-product brokerage across multiple carriers or multiple UMAs. To quote, you must engage with three or four technology platforms, and once your client accepts the quote, you must do something on one platform but have your technology to cross-sell to another client. Ultimately, you are doing work in three or four places, creating friction.
However, in the insurer’s world, technology can be applied end-to-end in its business, allowing brokers to log in and access an effective technology solution. One that potentially could save some costs.
In conclusion, technology is undoubtedly an enabler in the insurance context, making it more efficient, convenient, and cost-effective. However, it can be more than that if approached with a bigger vision, utilizing technology effectively can make consistent engagement across various stakeholders, leading to efficiencies and cost savings. The challenge remains in getting the data right and picking the right technology to adopt.
Ultimately, the end goal is to allow customers to choose how they want to interact and make their digital journey with the insurance organization more streamlined and efficient.