- Times are changing and insurers that don’t offer a simple, intuitive user experience will be left behind.
- Avoid the pitfalls of traditional IT projects by using rapid prototyping and user testing during development.
- Don’t make digital transformation dependent on a core system replacement. Often, it’s not necessary.
The insurance sector is facing a critical time. Customers expect simple, intuitive experiences from their insurers that offer true self-service on par with other sectors. Why are most incumbent insurers still unable to deliver this?
Many think that doing this will mean overhauling their legacy IT systems. Moving away from existing systems is particularly undesirable if you’re a business that wants to quickly address the problem and move on. The thought of a multi-year system procurement and implementation project causes sleepless nights. There is also the fear that a ‘rip and replace’ project will fail or run over budget.
But, the truth is that delivering cutting-edge user experiences in most cases does not require a core system change. It starts with culture and processes. To circumvent the inertia of years gone by, insurers need to act like start-ups by adopting their best practices and thinking. If they do so, they can really leverage their advantage over start-ups. After all, they already have the capital, know-how, regulatory approval and, of course, actual customers.