Creating superior digital client experiences is critical for the insurance industry. So, how can organizations become even better at understanding their customers using AI and analytics engines?
Most of the industry talk around this big questions focuses on the tremendous potential of AI and analytics engines to increase speed-to-market, anticipate trends and emerging customer needs, as well as providing enhanced digital experiences for advisors and clients that are more personalized, faster and deliver far more value than has ever been possible before.
Data is a strategic resource for insurance companies
All of these promised benefits, however, are contingent on one critical element—data. Data is the new oil, the valuable resource that fuels analytics engines.
But, without easy access to huge volumes of it, AI and analytics engines can’t get out of the driveway, let alone provide the business insights insurers are looking for to remain competitive in the evolving insurance market.
The good news is, insurers have data. They have almost nothing but data—especially the traditional insurance companies, who have been around for decades, and are warehousing millions and millions of client files, policies, agreements. That’s an entire universe of data points to feed their analytics engines.
Legacy policy administration systems are a roadblock
The challenge for those same companies is that many are still running 20-30 year old legacy policy administration systems. And, although these systems have been patched and upgraded over the years and are still able to process existing business, they are a roadblock when it comes to harnessing the power of AI, analytics and digital solutions that enhance customer experience.
Insurers still relying on legacy systems will struggle to leverage data and analytics to produce business insights that will drive their organization forward in the future.
That’s because most legacy systems have a closed architecture—data gets siloed within them. They can’t interface with the insurance APIs that make it possible to easily move data to advisor and client portals, eApps, illustrations and analytics engines.
Although the industry is extremely future-focused right now, of AI and analytics, many of the discussions I had with executives had a more historical bent. Insurance executives are bought in to the benefits of harnessing emerging tech going forward, yet they also realize that yesterday’s infrastructure is not going to work.
Step one is getting off those core systems that were developed and implemented decades ago.
Modern Policy Administration Systems enable the AI/Analytics revolution
Life insurance leaders realize that capitalizing on the immense opportunity provided by AI and analytics means migrating data off legacy systems to modern PAS that can push data out to the business intelligence engines as needed.
These new gen systems enable straight-through processing, provide real-time accessibility to high-quality data and can interact with APIs to deliver that data to the AI and analytics engines.
The end product:
- Better reporting
- Faster reaction to regulatory and market changes
- More targeted products
- Better and more tailored communications with clients leading to higher conversion and satisfaction
- Enhanced digital, omni-channel self-service capabilities for clients and advisors
Big data, and the insights it makes possible, promises a bright future for insurance companies and their customers. The journey to realizing that promise starts with migrating your data to state-of-the-art policy administration systems that will revolutionize operations today and be the platform for AI and analytics advances tomorrow.