The term “digital transformation” gets tossed around a lot these days in the auto insurance world. Yes, we’re moving to a more digital, automated existence—but what does that mean for motor insurance companies who are competitive now? Do they really need an auto insurance digital transformation to be successful if they’re already competitive?
There are a lot of reasons to not opt for an auto insurance digital transformation. It can be expensive and time-consuming. Legacy systems can be cumbersome to manage. It’s a distraction, when there are other projects that require your time and resources more.
But there’s one real reason to embrace the auto insurance digital transformation: speed to market.
The reality is, innovative, AI-backed insurtech products are flooding the market. Soon, they will be ubiquitous. Legacy tech and manual processes will lead to death by obsolescence.
To stay competitive as an auto insurer and offer new, dynamic solutions, digital transformation is necessary.
Insurtech has provided the world with new solutions and ways of implementing old solutions. Consider embedded insurance, for example. InsTech London 2030 forecast for embedded insurance’s GWP is $722bn, a 600% increase from today (much of which will come from North America and China).
An auto insurance digital transformation will allow you to capture new and evolving markets because you’ll be more flexible than ever before. McKinsey indicates that agile insurance teams (small, nimble groups with specific responsibilities) bring the following three benefits to insurers:
In essence, digital transformation can boost GWP by deploying new ideas rapidly and not getting bogged down in implementation. Let’s explore each of these attributes.
Speed to market means not waiting months or even years to develop or integrate a new solution. After all, you don’t want to spend time building out a product that will be obsolete by the time it launches.
An auto insurance digital transformation will help you develop innovative, compelling products quickly and seamlessly.
Let’s use embedded insurance as an example. You want your solution to be ubiquitous— deployed everywhere for user signups, policy quotes, etc. But every day you spend developing your embedded insurance solution is one additional day you miss reaching new customers.
For the sake of agility, it may be wise to consider partnering with a third party who can aid in the auto insurance digital transformation—thus minimizing the time to launch and manage the embedded insurance product for you.
Productivity doesn’t mean working hard—it means working smart. Nimble operations help organizations stay productive, but it can be easy to get bogged down in technicalities. Adapting quickly to new regulations is a prime example of something that can impede productivity.
That’s why you need a complete auto insurance digital transformation, one that gives you an easily adjustable and agile platform. Built-in support and controls can help you turn features on and off easily, so that you don’t need to re-develop a solution from scratch or amend your legacy systems.
Third-party solutions can save you a serious headache for these issues. On our platform, for example, we use webhook events to build new compliance features lightning-fast.
Customers demand new solutions yesterday. They don’t want to wait six months for your company to develop the solution that your competitor is already providing for its customers.
Keep your customers happy with the most up-to-date solutions and products at your disposal. Don’t let your competitors gobble up market share and offer insurance products and solutions that you don’t.
You need to ensure that your auto insurance digital transformation doesn’t take years—and doesn’t need extensive, time-consuming updates once it’s live. You need something quick, easy, and flexible.
nSurely is a Platform-as-a-Service that helps auto insurance companies in their digital transformation. Using big data, AI, and ML, we provide modular solutions that integrate simply and quickly.
We accelerate the speed of your auto insurance digital transformation by providing fast roll-out white-labelled solutions (like embedded insurance and UBI). And, of course, we help you reach new markets and buyers.
Our platform is configurable, allowing you to build new features while maintaining clear insight into risk. And with our complex AI risk engine, alternate data source risk can unlock new markets (with features like real-time risk mitigation/prevention)
If you’re interested in learning more about how nSurely can help your digital transformation, let us know.