The rapid pace of change in the insurance industry is providing organizations with more information and better insights to meet consumer demands.
Insurers need to embrace data and technology to adapt at a rate fast enough to remain competitive. This can be accomplished through adoption of an intelligent enterprise resource planning (ERP) system.
What Are the Benefits Intelligence Brings to the Table?
A digital core is the single resource necessary to ensure insurers are capable of reaching the needs of consumers, meeting compliance requirements, and capturing key data. It does so in numerous ways. First, it allows for flexibility to adapt to changes in regulations and new opportunities. It also allows an organization to comprehensively change or alter business models quickly to meet current needs in real time. Lastly, it works to simulate and predict information so that better decisions can be realized.
Decision makers gain insight into data that allows them to assess risks at a more granular level, while also understanding trends as they unfold. With a digital core, companies can keep data under control, including managing vast amounts of information from connected networks. This easily accessible content can be made available to any person within the insurance company.
At the heart of the process is also the need to innovate to meet consumer needs. Every insurer today can be faced with vastly different customers, some that need improved customer experiences, better products, and a higher quality of services that impact their individual – not collective – needs. Such innovations can deliver benefits that reduce risks, lower costs, and improve profits.
What Are the Digital Priorities in Today’s Digital Economy?
Most insurance companies are ready to embrace the digital economy, but they struggle to know where and how to prioritize the innovations they must bring to the table. Strategic priorities from today’s insurance industry leaders focus on several key areas.
First, there is the need to provide a digital environment for customer engagement, including self-service portals with mobile device connections that support enhanced user experiences. These tools help to build loyalty in a world where switching insurance companies has become far too easy. New-generation claims processing is one example of how an insurer can improve, and simplify, the customer experience.
Additionally, customers want more than just a financial solution when there is a problem. They are looking for services that help prevent potential losses before they occur. For instance, with a connected home, where consumers are using Internet of Things technology, insurers can gain insight into the consumer’s risks and provide suggestions and solutions that reduce damage exposure.
Another key area of focus is using data to influence insurance product decisions. For example, using machine learning and analytics makes it possible to know which products are necessary, and when and where to offer them. This ensures the ability to support effective product lifestyle decisions and processes.
How SAP S/4HANA Is Transforming Insurance
Implementation of SAP S/4HANA is enabling significant improvements throughout the insurance value chain. From improving customer engagement to enhancing product agility, this platform of digital core solutions empowers the insurer to meet customer needs, while reducing costs. Solutions for a responsive workforce, profit and risk management, and regulatory compliance are also available. SAP S/4HANA enhances every area of the insurance business model, ensuring insurers remain as competitive as possible. Perhaps most importantly, these solutions are flexible enough to allow any organization the ability to change, grow, and innovate in the most appropriate way for their specific needs.
In summary, SAP S/4HANA is making it possible for any insurer to become an agile, flexible organization, which is necessary to satisfy customer demands and deliver required industry innovations. Insurance organizations must ready themselves to embrace a new generation, where success hinges on being an Intelligent Enterprise.
To learn how SAP S/4HANA is helping transform the insurance industry with innovations in the digital core, read “Transform Insurance with SAP Solutions.”
Joseph Pacor is senior director of SAP Industries Marketing-Insurance.