Building a Foundation for Digital Insurance, an IDC InfoBrief sponsored by EMC and CSC
Insurers are moving away from the traditional wait-and-see approach to embrace new technologies as never before. They realize that digital transformation is key to addressing the many challenges the industry is facing today. Many insurers are investing in digital technologies to adapt to changing business requirements — technologies that can help exceed customer experience expectations, create new revenue streams through agile business models, and maintain cost and efficiency.
Insurers need to nurture an open culture and innovative mind-set, build a strong technology foundation and have the right talent and leadership in place to transform themselves in to a truly digital organization.
The Many Challenges in a Digital Era
Insurance Industry Perspectives
Insurers have been traditionally slow to adopt new technologies compared with their retail or banking counterparts. However, in the wake of ever-changing customer expectations and market dynamics, IDC observes that the industry is moving away from this approach to embrace new technologies as never before
Digital Transformation is Key
Insurers realize that digital transformation is key to addressing the industry challenges and enabling them to adapt to changing business requirements. Digital transformation needs a strategy and relies on “3rd-Platform” technologies and innovation accelerators.
Top IT Initiatives
Aging legacy systems, manual processes, data protection and regulation, culture issues, and talent shortage are all barriers for transformation. However, insurers cannot afford to wait for the perfect strategy to kick-start their digitization initiatives. The need of the hour is to build and deploy digital capabilities while also tackling the legacy problems. The top IT initiatives of insurers are a positive indication that digital adoption is a major focus for them, and it’s at the heart of their IT strategy.
Addressing the Skills Gap in the Digital Era
3rd-Platform technologies will create a skills gap. Insurers can address this and achieve their transformation objectives by effective sourcing, deployment and integration of internal (full-time and part-time employees) and external (contract, freelance, partner) resources. Transformation and optimization are realized by adopting strategies that leverage digital interactions and collaboration, connections, relationships and tools. This way they can identify the right resources for their initiatives and maximize productivity and outcomes.
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