The Philadelphia Contributionship, co-founded by Ben Franklin, opened its doors in 1752 as the first insurance company in the United States, with the specific purpose to reduce financial uncertainty and make accidental loss manageable.
Over the centuries, the variety of services provided by the insurance industry have grown to entail a significant volume of manual processes that perform paper-based transactions. Managing the creation, storage, retrieval, archival, and destruction of this information has generated a huge, burdensome bottleneck to efficiently delivering services to policyholders.
According to The Standard, New England’s Insurance Newsmagazine, “Digital adoption is reaching a tipping point in the insurance industry. To thrive in the future, agencies must adopt digital ways of doing business. Today’s consumer expects a streamlined digital experience throughout the customer journey.”
The future success for some insurance companies lies in their ability to digitally transform their business operations and customer data so that they can securely manage all transactions and information seamlessly and instantly to meet the growing demands of their policyholders.
Insurance Industry Challenge
The insurance industry is one of the most paper-intensive industries in today’s economy. And when you compare handling physical paper versus digital forms that need to be filled out, copies of proofs to be retained, and claims to be reviewed and resolved, the costs and management time for paper versus digital is significantly greater. Employee performance is also affected by continued use of legacy resources. PolicyAdvice noted that “68% of young insurance agents believe that the industry is too slow to adapt to new technology.”
Industry analysis and trends are convincing company leaders to develop advanced self-service tools and integrated digital communications to keep up with the leading online services in other industries. COVID accelerated the need for change and motivated insurers to move their digital transformation goals to the front burner. Insurance Business Magazine noted, “As the stakes of business survival reached new heights, so too did the momentum of the digital revolution, with insurance companies making clear efforts to improve their agility, deliver better service, and better their customer and employee experience.”
It is obvious that digital change is necessary to address increased security risks associated with continuing to manage paper documents and customer demand for digital services.
Benefits of Digital Transformation
Consider the benefits of technology-driven digital transformation of your insurance services. Stakeholders in your organization will have the ability to electronically access centralized tools and data to:
- Create and update policyholder accounts.
- Manage policyholder insurance cards, policy coverage, and preprinted forms.
- Streamline business processes for faster company-wide access to policy information.
- Decrease administrative labor costs by eliminating paper-based filing.
- Automate internal policy management and enforce document-based business rules.
- Provide a digital user experience for policyholders and employees.
- Automate billing for better financial management.
Find Your Digital Solution
According to McKinsey, “Over the next decade, the fully tech-enabled insurer will bear little resemblance to today’s organization.” Accelerating technology trends will transform the very nature of insurance, from using artificial intelligence (AI) with real-time data to seamlessly adjusting coverage based on the evolving needs of customers.
Insurance Magazine adds that there will be a shift to digital channels. “The industry will see an increase in the adoption of digital tools, especially among agents and brokers, as the use of self-service digital channels also rises.” This is a long way from how things were done at The Philadelphia Contributionship in 1752, and if Ben Franklin were around today, we think he’d be impressed!
These predictions are important to consider. The key question is, how can you efficiently implement a successful “digital transformation” of your insurance organization? Simple. Consult the experts! Work with a technology partner that has extensive experience and understand the unique needs of the insurance industry.
For well over 30 years, NEdocs has been at the forefront of digital documents and processes and digital transformation implementations including AP Automation, HR Records Scanning and Management, and the Digital Mailroom. We provide leading digital technologies and support services for document scanning, storage, archiving, retrieval and destruction. We’ve worked with large insurance agencies as well as carriers to address specific digital upgrades to document management and security.
For further information about how you can implement a successful digital transformation of your insurance business, contact us online or speak with one of our service experts at (603) 625-117