Lack of innovation is the biggest complaint that risk managers have about the insurance industry, according to Airmic’s 2019 poll.
But the good news is that increased digital transformation in insurance is helping some organizations to introduce efficiency, better customer service and general modernization to an industry that has long been weighed down by legacy technology and operations. This innovation is critical for today’s large incumbent insurers who are facing greater threat from new challengers big and small.
Here are a few examples of wins that insurers have seen thanks to digitally transforming their legacy systems with Bizagi’s intelligent process automation platform:
1 – Security & Compliance
Compliance standards are considered highly important by 92% of firms according to Nasdaq’s Global compliance survey. In an industry as intensely regulated as insurance, it’s no wonder that compliance is a top concern. Digitally transforming insurers’ technology infrastructure is an excellent way to ensure compliance across the organization.
One Bizagi customer was looking to optimize their legacy peer review system, which was almost 20 years old and had a backlog of over 500 items. A myriad of disconnected systems and communication between employees over email meant it was hard to prove compliance in accordance with Lloyd’s Underwriting Minimum Standards.
In just four months, the peer review system was completely rebuilt, improving the quality of review processes by 200%, whilst taking 25% less time. The centralized platform also produces an automated audit trail and automated processes ensures compliance is consistently maintained.
2 – Faster Operations
Being able to reduce project risk and adjust to market changes quickly are two major concerns in the insurance industry. Legacy systems are often rigid and don’t allow for quick changes that can deliver greater value to both the customer and insurers. But digital transformation in insurance has presented a solution: an automated workflow approach.
Generali CEE Holding embarked on an organization-wide business transformation to significantly boost productivity and efficiency in the area of corporate risks underwriting. Making the leap to automated and efficient processes and workflows has delivered immediate benefits for the insurer.
Bizagi’s system architecture enables reuse, meaning multi-country, multi-language deployments become more effective with scale. The initial project cost saving was 60% when compared to other systems. As a result, underwriting time spent processing the most complex offers has been reduced by 50%.
3 – Employee Productivity
There are never enough hours in a day. Manual tasks such as data rekeying and communicating updates via email can take up significant time. Anything you can do to make your workers more efficient is welcome.
The Asian division of a global insurer recently rolled out process automation using Bizagi for their claims process – a vital point of their mortgage insurance. They deployed a workflow solution to simplify the process, then automated the validation, assessment and ultimately the approval of a claim.
The automation of manual tasks involved in the process, such as data entry, Excel calculations and email communications has freed up 15 employees, allowing them to be placed in other insurance departments and saved those still working in claims 2 hours a day. The automation also ensures compliance by minimizing the risk of data being entered incorrectly.
4 – Visibility & Reporting
Complex systems with siloed data pose a major problem for insurers. Insurance Edge reported that nine in ten insurers do not have a single unified view of their customer data, yet 70% say that achieving this view is either critical or very important to their business.
Prose-Chile enlisted Bizagi to help deal with one of Chile’s most prominent issues: the sustained increase in the rate of uninsured stolen vehicles. Combining a centralized data repository, strong process automation, improved workflow and integration to the country’s Civil Registry, Chile’s 11 major insurers can now effectively search, discover and recover vehicles in ways never seen before.
Over one million records were centralized and made accessible online in a system that is now used by 90% of the Chilean insurance industry. This has resulted in a 17% increase in the rate of vehicle recovery and a reduction of fraud in double pay-outs due to better visibility of claims in the system.
If you would like to learn more about how Bizagi is aiding digital transformation in insurance, please watch the webinar below. Hear from Oliwia Berdak, Principal Analyst Digital Business Strategy at Forrester, and Sean Hull, Insurance Transformation Expert on how insurers are continually adapting and changing in response to customer demand.
Feature image via Generali Group, Glassdoor