The Modernisation of a 332-year-old Insurance Market
The business of insurance, assessing risk, collecting premiums and paying claims hasn't really changed much since 1861 when a group of underwriters sold the first paper policies to protect London homeowners against losses from fire.
Recently, though, the insurance industry has embarked on a radical transformation through a series of digital innovations whose widespread adoption is already upon us. With competition mounting from overseas insurance markets, questions have now been raised around the longevity of UK insurance institutions such as Lloyd's of London; will it continue to be the centre of their market in coming years, let alone the decades and centuries that it has lived through if it doesn't reshape its workflows to embrace the digitalisation of its processes?
Recently, Lloyd's of London, the 332-year-old insurance market, revealed it is implementing its own digital metamorphosis. In an interview with the FT, Inga Beale, Lloyd's Chief Executive said that she would force the insurance market to embrace the digital world and now wants 80 per cent of its business to be done electronically by the end of next year. In the interview, she said that Lloyd's was working on structured data capture and automatic premiums and claims processing, and once the whole piece was complete it was sure to generate cost savings.
For those insurers ready to follow suit and seize the same initiative, digitalisation presents an immense opportunity. The companies that stand to benefit the most are those that use external consultants with the expertise to help optimise their operations, from data capture through to customer service to claims management.
Restore Digital, a leading document management company, has identified a critical digital technology that has already begun to disrupt the insurance industry and is likely to create an impact over the coming years. Automation of claims technology is reshaping the very core of the insurance industry; this will ultimately trim cost and generate savings which will be passed onto customers. This technique will thereby win new business and help gain critical market share.
Automation of claim handling processes
The single most significant operational cost for insurers is claims processing. Inefficiencies, processing errors, leakage and fraud drive, costs up and drain resources. A current insurance IT architecture is a critical component for digital innovation, with many insurers opting for automation of claim handling as the best option for driving efficiencies.
Through automation, companies can boost organisational efficiency, improve customer service and cut costs. Through faster, more accurate settlement of claims, they drive better, longer-term relationships with their policyholders and claimants.
In fact, companies that do this in partnership with external consultancy expertise will be further along on the road to achieving a broad-based, customer-focused digital transformation.
Data management companies, like Restore Digital, actually facilitate the process further through the use of state of the art scanning software tailored to connect with a company's existing records management system, or where appropriate, use an implant team for the digitisation and capture of inbound claims.
Insurance data in today's modern society can arrive via letter, email, a portal, social media or from a text message and through the use of tailored software, it can be dealt with quickly and relayed to the correct person. Processes and retrievals are speeded up and aligned to deliver optimal customer satisfaction.
Scanning software in partnership with an encrypted (AES-256)2 electronic transfer of documents to an insurance company's own system, offers a practical and secure way of removing paperwork. Original paperwork rarely needs to be put into long-term storage and can be destroyed securely. In a typical scenario with a company needing to digitise 100,000 documents, it is possible, given the correct deployment of resources, to achieve conversion and integration in 3-5 working days.
If you would like to talk more about any of the services Restore Digital have to offer, please contact email@example.com to arrange a convenient time to chat.