Key Trends Affecting Insurance CIOs in 2021
The past year and all that came with has thrown everyone a bit off course. Insurance companies are no exception to this. The pandemic has accelerated the world’s move towards digital, making 2021 a very interesting year indeed. Insurance industry trends for the year will be driven by technologies that can streamline and improve insurance processes. This includes technologies that allow employees to work from anywhere. It also includes those that remove barriers to online conversion and allow customers to self-serve. In 2021, insurers must evolve to compete. For CIOs, digital transformation projects that are so often put on the backburner, are now top of the queue.
Below are 5 key trends affecting insurance CIOs in 2021.
1. Adopting Cloud Technologies
Some of the biggest challenges facing Insurance CIOs are based around having an old system that is difficult to customize. That is one of the main reasons why we are transitioning to a future where companies are run entirely in the cloud. Embracing cloud technologies allows insurance companies to be more flexible and react to the changes of a rapidly evolving industry. Adopting cloud technologies also enables insurers to adapt their offering to the changing needs of their customers.
Cloud computing has been steadily on the rise for years and ActionPoint has helped dozens of companies adopt cloud technologies. However, the events of 2020 have accelerated the transition significantly. Remote working has become more mainstream and customers are more accustomed to being online for the entirety of their buyer journey. The insurance industry is now more geared towards cloud technologies than ever before.
2. Digitising the Customer Experience
Carrying on from the last point, one of the key trends of 2021 will be digitizing the customer experience. This is not just restricted to the insurance industry. Digitization, and digital transformation, is now a global obsession. We live in an age where customers expect to be able to carry out their affairs online, no matter what they are doing. The digitization of customer experience in the insurance industry is therefore not just a possibility, but an inevitably. Companies that adopt in 2021 will be at the front of the pack. Customers now expect to have the ability to self-serve.
Inefficient, manual processes have been the norm in the insurance industry for centuries. However, this is no longer feasible. Some key goals for insurance CIOs include increasing online conversion, improving customer experience and allowing customers to self-serve. These goals all point towards the digitization of customer experience. It’s time for insurance companies to tap the CX opportunity.
3. More Seamless Management with Microsoft 365
The events of 2020 have not only changed the way insurance companies interact with customers. It has also completely transformed internal operations. In 2021, remote working is no longer the exception but the norm. This presents a number of challenges for insurance CIOs. For one, there is the security threat. BYOD and unsecured home networks expose organizations to threats. There are also the many productivity and efficiency challenges that come with managing a digital workforce. For companies that aren’t used to managing remote working teams, the lack of collaboration can also be a real concern.
To overcome these challenges, ActionPoint sees the adoption of cloud-based solutions such as Microsoft 365 as one of the key trends of 2021. Microsoft 365 puts safety first, it is built for collaboration and allows for seamless management of teams spread across multiple locations.
4. Automation and AI Automating Workflows
For years, insurance companies have been lagging behind other industries when it comes to embracing innovative technologies. This needs to change. The pressure is on CIOs now more than ever to accelerate digital transformation and innovation. Inefficient, manual processes have to go. Likewise, customer journeys that drive traffic to call centers. A study by McKinsey suggested that by 2030 Artificial Intelligence will overhaul all aspects of the insurance industry. AI is inevitable and CIOs need to start weaving it into their strategic roadmap today.
AI and machine learning technologies mean that many aspects of the insurance process can now be automated. With AI, insurers can access data faster and cut out the need for human input. This frees up insurers and underwriters to work on more important tasks while improving accuracy and efficiency. Almost all predictable, repeatable workflows can be streamlined with automation technologies. It is vital for CIOs to investigate the possibilities.
5. Remote Working is Here to Stay
There isn’t much to say here that hasn’t been said before, but it is worth reiterating that remote working is here to stay. For years, ActionPoint has been helping companies transition to remote working strategies. At the start of 2020, we might have predicted that remote working would be the norm within 5-10 years. Obviously, the pandemic has changed the playing field. Remote working is now here. It is up to insurance CIOs and IT Managers to ensure that teams are suitably prepared.
ActionPoint can help insurance companies to set themselves up in the correct way. This includes all aspects of remote working, from equipment to cloud-based technologies and IT security.
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