Life insurers reveal tech strategies to boost CX
Modernizing core insurance systems and migrating to the cloud have become essential strategies for insurers looking to enhance customer experiences, introduce new value propositions, and remain competitive in the digital age. These technology-driven initiatives enable insurers to leverage advancements such as self-service capabilities and personalization through generative AI to achieve speed and scalability.
Key drivers and benefits of modernizing core insurance systems and moving to the cloud include:
Speed to Market: Insurers are pressured to bring new and differentiated products to market quickly. By modernizing core policy administration systems, carriers can rapidly use configurable product templates to create multiple product variations. This flexibility allows for the swift introduction of tailored products and white-label offerings for distribution partners, ultimately improving the customer experience.
Operating Efficiency: Modernization efforts often focus on process efficiency, particularly in new business and underwriting areas. Insurers use technology platforms to streamline processes, reduce operational costs, and enhance customer and employee experience. This operational efficiency creates capacity for product development and roadmap execution.
Customer-Centricity: Future-ready insurers aim to be more flexible and responsive to customer and stakeholder needs across all enterprise functions and distribution channels. This customer-centric approach involves leveraging technology to anticipate customer preferences, deliver personalized experiences, and meet evolving expectations.
These initiatives align with the objectives of insurance CIOs, as identified in a Gartner survey, where customer experience and new product/service development ranked among the top five digital investment priorities.
By modernizing core systems and embracing cloud technologies, insurers can unlock the agility, scalability, and innovative capabilities needed to thrive in a rapidly evolving market. This approach benefits the organization’s internal operations and enhances the customer journey, driving growth and profitability.