P&C Insurance Digital Transformation: Full Guide

P&C Insurance Digital Transformation

The way we approach our daily lives has been revolutionized by digital transformation. Many businesses have embraced the numerous possibilities that digital transformation brings. P&C insurance digital transformation is an exceptional case, given the highly regulated nature of the industry.

There are numerous possibilities for technology-driven insurance services. In the second quarter of 2021, investment in insurance technology companies surged from $500 million in the second quarter of 2014 to approximately $5 billion, notably. As per a survey carried out in 2022 on 250 policyholders from the United States and Canada, 36% stated that they changed to providers offering an improved digital encounter.

P&C insurance – the more easily accessible sliver of the industry – is the field with a pronounced focus, according to .

Where insurtechs are focusing data from McKinsey

Source: McKinsey.

Now, there is no clear playbook for companies in the insurance industry to navigate this exciting territory of AI technologies and personalization, given the rising customer expectations and the ever-increasing demand for disruption.

Explore how property and casualty insurance companies should approach digital transformation, the most notable trends, strategies, and optimal methods for digital transformation in the insurance industry, and uncover the essential element to unlock the digital transformation for your organization.

Benefits Of Digital Transformation For P&C Insurance Companies

1. Enhanced CX

To remain relevant in the future of insurance companies, it is imperative that they meet customer expectations by being proactive. Although previous generations still make up the majority of the customer base for insurance companies, their expectations have shifted.

One reason is that digitalization enhances the quantity of interaction points for clients. Rather than having scattered channels for communication and services, insurance companies should consolidate their services into a unified workflow, ensuring consistent information. Moreover, there is a notable interest in an application that provides visibility across all financial and insurance products.

Lemonade, a digital-only P&C insurance company, is successfully improving customer experience through their innovative digital platform, which includes a cloud-based localization and translation management system called Lokalise. This system helps break the language barrier, allowing Lemonade to bring their services to users in other countries. The backbone of their car insurance product includes AI/ML-driven claim reviews and driving habit-based recommendations. Lemonade stands out among other pioneers in the digital transformation of the landscape insurance industry by offering many innovative features through their mobile and web platforms.

2. Improved Operational Efficiency

The insurance industry, specifically property and casualty insurance, greatly benefits from automation due to the execution process being consistent through improved compliance and mitigated risks of human error. This automation helps reduce operational costs and speeds up the claims process for insurers by implementing rule-based and highly standardized processes. Additionally, it takes less time to address policy issues.

The front, middle, and back offices are seamlessly combined by connected devices and data insights, API(s), automation, and various advanced technologies, completely transforming the entire business operation. To genuinely enhance operational efficiency, a comprehensive approach is required.

Businesses can enable chatbots with online support features to offer personalized and convenient assistance to busy customers, freeing up teams to allocate critical resources to tasks that are truly important, such as insurance workload.

3. Better Risk Management

As insurers decrease expenses, they are now able to efficiently recognize, gauge, track, and oversee hazards. The advent of digital transformation presents various prospects for risk functions within the insurance sector. Furthermore, the risk environment in the insurance industry is undergoing transformation.

Examples of non-financial risks, like political uncertainties, cooperation across industries, and the utilization of novel data sources, can assist in forecasting and overseeing emerging risks. Insurers can enhance their understanding of risks such as mortality and policy discontinuation by harnessing data and employing analytical methods, such as big data and artificial intelligence.

Automation and modular systems can streamline the process by breaking it down into smaller, more manageable pieces, using contextually appropriate synonyms to replace words.

4. New Revenue Streams

Insurance companies in the P&C sector can provide significant opportunities for revenue generation and business expansion by offering value-added services such as cybersecurity or risk consulting to their customers. Insurers, for example, can leverage their data and expertise to offer these services.

5 P&C Insurance Digital Transformation Strategies

1. Adoption of low-code tools

Enterprises and SMBs alike have shown great interest in these low-code tools, thanks to their cost-saving nature, easy-to-use capabilities, and ability to enable faster results, lower resource expenditure, improved collaboration, and easy maintenance. Their agility makes them a valuable asset.

Vendors of low-code development and testing tools understand that they are leading the way in the digital transformation movement, therefore they consistently ensure that their tools can seamlessly integrate into the extensive ecosystem of its respective field. Digital transformation involves more than just adopting a single tool, but rather entails embracing an entire ecosystem.

As the space for traditional business approaches diminishes and the significance of speed and flexibility in insurance becomes more acknowledged, it is bound to become the norm in the near future. This represents a competitive edge, and low-code tools empower insurers to swiftly construct, evaluate, and implement novel applications and procedures, thereby expediting time-to-market, especially within the P&C insurance sector.

2. API economy

APIs enable seamless integration between different systems, allowing insurers to easily share and access data across various external partners and departments. This makes it easier for insurers to handle underwriting and claims processes more efficiently, as well as quickly develop and test new products, enabling them to turn around in a timely manner.

Insurance companies should adopt rigorous measures to ensure the security and quality of data, as well as handle multiple sources of data, in order to be able to overcome new challenges that the increasing use of APIs presents. Additionally, they must maintain the required levels of security and performance, and ensure that their APIs function correctly by communicating with other systems.

3. Customer Self-service

Self-customer service is a key trend in the digital transformation of the insurance industry, where insurance company representatives can interact with customers without having their own access to information and perform tasks.

With the emergence of digital technologies, insurance companies are now offering customers digital self-service channels through websites, mobile apps, and chatbots.

This trend is fueled by various factors. Firstly, customers are becoming more knowledgeable in technology and at ease with digital advancements, leading them to anticipate a similar level of interaction with companies. Secondly, companies are able to engage with customers at any time and with fewer resources through self-service channels. Lastly, mundane tasks are automated, enabling staff to dedicate their time to addressing more intricate matters via self-service channels.

Customers can use self-service channels to file a claim, communicate with adjusters, and track the status of their claims. They can also use these channels to manage their policies by making changes to their coverage or updating their contact information. Additionally, customers can utilize digital channels to obtain coverage options and quotes. The insurance industry offers various forms of self-service options for customers.

4. Continuous Testing and Comprehensive Quality Assurance

The business of failure, in the end, and the reliance on failure, discontent to guide can these systems with any problems and systems digital with interactions reliable and quick seamless, 24/7 anticipate customers experience. Customer initiatives are closely connected to digital transformation. Comprehensive quality assurance must go hand in hand with these strategies.

The insurance software is highly regarded for its features, receiving extensive test coverage. This guarantees that testing activities are seamlessly incorporated into the development process. Through continuous testing, tests are automatically executed according to a predetermined schedule, and thorough quality assurance and continuous testing ensure that digital systems operate at their best and provide the desired customer experience.

Furthermore, without adequate measures to manage and implement, it can be difficult to address compliance or legal issues, resulting in a negative impact on user experience and hindering productivity. Additionally, there is a risk of other issues and bugs due to the complex processes and technologies involved in digital transformation initiatives.

Banner for eBook digital transformation for P&C Insurance companies

5. Identify areas of opportunity for automation

Automation plays a crucial role in the digital transformation of insurance companies, particularly for P&C insurance companies. Meeting the demand for a digitalized customer experience is of utmost importance, and automation serves as the backbone for achieving this goal.

Lately, due to the emergence of AI-driven chatbot, it continues to offer personalized customer experiences, decreasing waiting time. Established insurance firms have opted to invest in automation solutions for their claims processing, underwriting, and policy administration tasks instead of allocating resources to cater to the endless flow of customers. Automation minimizes obstacles for processes that involve interacting with customers.

Having a deep understanding of your customers is a competitive advantage. Companies can leverage this to further tailor the insurance experience for their customers. Automated systems can bring invaluable insights to your business, generated from customer data interactions. Automation also unlocks data-driven decision making.

After achieving high test coverage (i.E. Gaining a thorough comprehension of the quality of your entire insurance application), automating your processes eliminates the need for excessive investment in building a QA team. Companies must invest in order to sustain the stability of insurance applications’ quality. Following that,

How Katalon Platform Equips Property and Casualty Insurance Companies For Digital Transformation.

SAGA, a leading insurance company based in the UK, has successfully embraced digital transformation. Its focus on quality sets it apart, with continuous and rigorous testing being a key component of its business model for desktop insurance websites and apps. This is what makes SAGA stand out, and it is all thanks to the Katalon platform.

SAGA - a leading UK-based insurance company achieved better software quality management with Katalon

When the team of in-house testing is unable to keep up with the demand and the challenge arises when SAGA scales, it becomes a necessity for them to adopt automation. They need a solution that allows them to manage and execute tests for all their insurance channels, as well as create and maintain tests. They need more than just a tool for testing automation.

After implementing Katalon, they have successfully increased their testing productivity threefold.

Katalon Platform Software Quality Management platform

Platform Katalon is a comprehensive and modern software quality management platform developed by Katalon Inc. It allows teams to efficiently create, maintain, and manage applications, both desktop and mobile, API, web, and scripts for testing, improvement, and automation. The platform is built on top of the Selenium and Appium frameworks, which are open-source automation sources and are considered the best in the industry.

Katalon’s user-friendly interface and extensive pre-built test frameworks enable testers to swiftly generate automated test scripts for their insurance software. The all-inclusive quality assurance solution they require is supplied by Katalon Platform, aiding insurance companies during the digital transformation journey.

This presents an opening for a comprehensive insurance experience across various platforms, devices, and operating systems, which can be accomplished by running these test scripts across different platforms. This ensures that your insurance digital systems function flawlessly.

Katalon’s smooth integration with your current CI/CD system guarantees prompt bug identification and problem-solving. Katalon also supports API testing, enabling the testing of third-party integrations and external systems. Additionally, Katalon allows for the validation of functionality and visual quality of your application through both UI testing and functional testing.

Give Katalon Platform a try.