Whilst common in manufacturing, the insurance industry doesn’t have many production standards. Production standards are gaining renewed relevance however as the world is digitising and automating. Should insurers take notice? Hell yes!
Digitisation in insurance moves us toward an integrated structure of planning, production and control. Through this integration and digital transformation, insurers experience lower operational costs, new revenue opportunities, lower lead times and enhanced reporting and data analysis capabilities, which can fuel better product programs and supports loss prevention.
In order to get there, companies must eliminate multi-suite applications and incorporate planning and reporting solutions into a single eco system that is accessible and shareable across a product’s value chain. The value of this resides in the breaking down of cross-organization silos and collaboration barriers — two key obstacles insurers must overcome when dealing with a multitude of partners, suppliers and regulators.
Our company, Inmediate, builds this kind digitised future ready Smart Insurance environment for insurers using all the latest technology. We now build policies and accommodate their life cycles only using standard elements, no matter how complex, and run them in a multi participant eco system on a shared distributed ledger database, opening data and communication up directly to all participants in the insurance value chain (think care providers, workshops, intermediaries, surveyors, authorities, etc.).
Not many, particularly in the insurance industry, realise yet how big the impact of this (and the associated economic and social opportunity) is going to be. Besides having to continue to be relevant to customers who are digitising as well, there are significant cost reductions and other direct benefits, such as the interoperability of insurance systems with other key systems run by the insurer’s customers such as enterprise resource systems and (regulatory) control and support systems.
With today’s cloud computing, data storage and management platforms such as distributed ledger and blockchain, digitising the supply chain means insurers will have greater data gathering, reporting, and analytics capabilities. This means they can review large amounts of data in real-time to not only to optimise products, but they can also share this data in-the-moment with other crucial players in the supply network to optimise the customer support and experience.
The Internet of Things (IOT) can add to more accurate, responsive, and accessible data management and analytics. The connection of external data sources helps in claim situations but also helps actuaries create enhanced what-if scenarios and simulations.
Creating a digital supply chain strategy requires a top-to-bottom approach that brings each application into the same eco system. Successful creation and implementation of such a strategy will help eliminate functional silos and increase communication and collaboration surrounding planning and production benchmarks and goals. What’s important here is the word holistic in that companies must view planning, production, and data management solutions as part of the same overall endgame rather than as disparate functions.
Complete digitisation is quickly becoming less of a dream and more of a necessity for insurers to remain viable and competitive.