FinVision: Insurance transformation is ‘missing the bigger picture’

By Sunniva Kolostyak

Insurance companies aiming to complete digital transformations are getting bogged down in transforming silos without a coherent strategy looking at the bigger picture, according to FinTechOS, who opened day two of the FinVision conference.

Teodor Blidarus, Co-Founder & CEO of FinTechOS, the FinVision host, highlighted that the uncertainty in the global economic landscape is affecting insurance, with the industry losing 35-41 per cent of its market capitalisation in Europe and North America in just a month.

In order to remain relevant, insurers need to continue on their digital transformation journeys, however, they need to always keep the customer in mind and complete projects in a way which incorporates the customer experience at every step.

“I can’t explain how important it is, the customer journey concept,” Blidarus stated.

When entering insurance transformation programmes, the digital transformation specialist has seen IT department being more focussed on improving processes, workflows and systems, while the product and business line managers are focussed on the customer experience around only certain product and services, and customer satisfaction departments are preoccupied with measuring and identifying the right touchpoints.

Blidarus said: “What is missing from the bigger picture is something to glue everything up. Why? Because all these concepts and all these conversations are from within the company, rather than from outside the company.

“Do the math, start thinking about the insurance company as a specialised black box that needs to put out as many personalised customer services as possible.”

He added that the firm intends to launch a transformation solution, nicknamed ‘Lighthouse’, to help insurers incorporate end-to-end digital capabilities for better services and personalised experiences.

READ MORE: FinVision: Banks must open their thinking to transform, Microsoft says

Also speaking at the opening panel, Marcin Warszewski, Director at Deloitte CE, noted that insurers have, like banks, exposed their own soft underbellies – commoditised products, weak pricing, poor customer experience and low customer engagement.

He sees three areas where insurance is being disrupted: usage-based insurance, which offers better price points and addresses gig economy needs; health ecosystems, which builds engagement, insights and monetises relationships; and customer experience, simplifying products and language and adding personalisation and omnichannel experiences.