Organizations in the insurance industry are currently facing multiple external pressures, but none more than the digitization of insurance products and services. Digitization, or automating existing processes, helps create speedier and more personalized offerings for customers. Can organizations in the insurance sector develop digitization strategies that meet demands of customers?
Bâton Global has guided organizations to develop strategies that promote transformation and positive change in an organization. Digitization is an extremely difficult undertaking that is necessary for organizations in the insurance sector. What are necessary steps in ensuring your digitization strategy is properly developed?
The degree of transformation that is required by an organization is determined by category and product offering, along with the evaluation of existing processes. Assessing existing processes in the organization provides the proper analytics needed to determine the right digitization strategy.
Comprehensive analysis of internal systems and processes is needed within your organization. This analysis provides a base point to develop strategic objectives and future goals.
A major motive behind digitization is the rise in competitors seeking to take market share from traditional organizations. Known as insurtechs, these companies enter the insurance sector, taking advantage of new technologies to provide coverage to a more digitally savvy customer base. By looking at the product offerings of prominent insurtechs, organizations can determine how the technologies these newly developed companies utilize can help transform their own organization.
There are different options organizations can take in looking to incorporate new technology to help automate existing processes. These include developing technology in-house, partnering with existing insurtechs, and purchasing existing insurtechs. These decisions can be made based on the type of technology looking to be utilized, the capital requirements of the insurtech, and the level of innovation that is occurring within the insurtech. A thorough external analysis provides organizations with the proper competitive climate and industry knowledge that is needed to determine long-term objectives.
By evaluating current systems and process along with external climate, organizations can develop a proper strategy. Similar to developing other organization objectives, developing a digitization strategy should incorporate a strong articulation of ambitions and aspirations. This allows organizations to be transparent with stakeholders and provides stakeholders an opportunity to express their comments and concerns regarding digitization.
Baton Global has found than strategic management systems help develop organization objectives that are established from feedback by all stakeholders within an organization. Understanding the goals and aspirations of stakeholders within the organization aids in determining the correct long-term objectives.
Increased competition in the insurance sector has created the need for all insurance organizations to incorporate digitization in future strategies. Bâton Global has displayed insight in establishing digitization strategies among larger, more traditional organizations, and has worked closely with insurtech startups that display industry-disrupting technology.