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Ensuring the Future of Insurance with Digital Process Acupuncture

Cognizant Ensuring the Future of Insurance 1 with Digital Process Acupuncture 1 Insurers are being buffeted by digital change, from drone imagery for actuarial activities, to using social media for customer outreach. Howeyer, boil-the-ocean strategies for digital change are usually doomed from the outset. So where to start? Consider: digital process acupuncture. The precision application of digital technology to just the right processes or sub-processes can help relieve operational stress in business value chains to unlock unprecedented value. We surveyed 55 European and U.S. insurance leaders across the property/casualty and life insurance spaces (PC&L) to understand how and where they are applying digital tools and techniques to optimize work. Here's what we found: Trim the Fat and Build Digital Muscle Digital process acupuncture releases massive cost savings and revenue growth in the PC&L insurance industries. 9.8% 8.0% ALL INDUSTRIES 0101 10 AVERAGE REVENUE AVERAGE COST INCREASE REDUCTION 11.6% 10% PC&L INSURERS 01 0101 00 AVERAGE REVENUE AVERAGE COST INCREASE REDUCTION Source: Cognizant Center for the Future of Work 0. Penny or Pound: Insurers' Pervasive and Persistent Process Digitization PC&L insurers have targeted the "leaky sieve" of fraud. Using digital, they can close gaps and obtain real-time documentation, usage patterns, smart home telematics, time of day, etc. 56% 51% HAVE ALREADY HAVE ALREADY DIGITIZED DIGITIZED RISK AND INNOVATIVE CLAIMS FRAUD COMPLIANCE MANAGEMENT APPROACHES Actuarial functions are poised to be next in line for digitization. • The greatest percentage of pilots (40%) are being applied to novel approaches to actuarial processes. Predicting behavioral change digitally (e.g., pay-how-you-drive telematics) can lead to lower payouts and loss ratios. ON-LINE Source: Cognizant Center for the Future of Work ilı The Healing Touch: Pinpoint Techniques that Release Value The most-hyped industry initiatives, such as drones, lag behind others that are already in progress. (Percent of respondents citing digital process solutions, services or approaches already in use) 62% 56% • Location • Omnichannel personalized content or services services, maps 53% • Peer-to-peer (e.g., insurance for ridesharing, vacation home rental needs) 45% Usage-based telematics, sensors, smart homes, smart cars 42% • Straight-through digitization/ automation of claims • Real-time analytics-driven forecasting and pricing Digital fraud detection & prevention processing ..... 38% • Incident-specific micro-insurance (using social, mobile) • Wearables & safety 33% 36% • Imaging (drones, satellites, actuarial analytics) • Gamification & rewards Source: Cognizant Center for the Future of Work Ensuring Alignment with Insurance Business Drivers Insurers view the impact of the sharing economy as a strategic digital process priority, as well as changing demographic shifts such as the impact of longer life spans on retirement. (Percent of respondents who rated the driver as highly important) 73% Smart or shared cars, homes, offices (clean, connected, safe) 69% Retirement (longer life, lifestyle, dependency) 62% Wellness and health (remote monitoring, augmented body, self-quantified) Source: Cognizant Center for the Future of Work 1090 From Symptom to Cure: Applying Digital Process O 10 Acupuncture to Reinvigorate Insurance Process change for insurance companies looks and feels different in today's digital age. Leaders need to be innovative and nimble, while simultaneously managing organizational change. Rather than reactively performing major surgery, we recommend digital process acupuncture as a proven way to heal and energize the insurance enterprise and deliver lasting outcomes across the extended value chain. To learn more, read our white paper at: http://cogniz.At/digitalprocessacupuncture, or visit our business process services business unit at: http://cogniz.At/bps. KEEP CHALLENGING" © Copyright 2016, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trade- marks mentioned herein are the property of their respective owners. TL Codex 1797

Ensuring the Future of Insurance with Digital Process Acupuncture

shared by cognizant on May 01
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Anybody can “go digital,” but rather than a big-bang approach, leading PC&L insurers are using precision-guided digital change to unlock unprecedented value throughout their extended value chain. ...

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cognizant

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Business
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