Digital technology is having a profound effect on organizations of the 21st century. It’s changing the way we work, how we communicate, and even the products we use. As insurance companies continue to adjust to the new digital age, many of them are searching for new ways to improve customer satisfaction and maintain their competitive edge.
At their core, insurance companies are a service and knowledge business, but their lack of digital innovation is dramatically impacting their ability to provide customers with positive experiences. No one can deny that there will always be a need for insurance, but whether or not consumers chose to do business with your institution rests heavily on your ability to identify and deliver on their needs.
Why do insurance companies need Agile?
1. Legacy vs. Modern technology
Agile systems help you adjust to market changes quickly. If your organization relies heavily on paper-based processing systems and manual labor, then you are at a disadvantage. Legacy systems are anchors that prevent you from reaching a digital transformation and will limit your ability to act on new opportunities that arise in the marketplace. On the other hand, Agile organizations can assess the market thoroughly and make quick adjustments to their products and services.
2. Deliver greater value to customers
When Agile practices are implemented correctly, insurance companies can focus on generating continuous value for their large corporate clients and day to day consumers. The best way to provide maximum value to customers is having a sound understanding of changing consumer needs and the ability to implement the necessary changes. The primary focus of all Agile systems is to deliver software that does not require large amounts of documentation, is created through quality stakeholder collaboration, and provides relevant products faster through shorter development cycles.
3. Improve time to market
By increasing organizational agility, your development teams can focus on optimizing your services by taking an iterative approach to product development. This approach will help you generate small wins because your team will be focused on completing one task at a time, making it easier for them to define value streams accurately, eliminate defects & reworks, meet deadlines, and establish credibility. Most importantly, they can make crucial adjustments to your products before you roll-out them out on a large scale.
By applying these agile practices - starting small, failing fast, and scaling quickly - insurance companies can adjust to the current market demand for digital innovation, aligning themselves more closely with current customer needs.
4. Improve stakeholder alignment
Many organizations struggle with maintaining stakeholder confidence and alignment. The right Agile framework can help your organization improve collaboration between various teams during the development lifecycle. So, whether you’re a business leader, product manager or developer, your focus should be providing the maximum value to your customers. By increasing the level of internal collaboration, insurers will be able to swiftly identify potential risks, use data to develop smart solutions, and drive innovation for their customers.
More specifically, better alignment between business and IT stakeholders will help your company identify new growth opportunities because your teams will be to deliver:
- Speedy responses and decision-making
- Clear insights to compete at the right points in the value chain
- Enhanced customer profiling and improved customer experience
- Reduced bottlenecks and rework
If your organization is finding it challenging to maintain stakeholder alignment, an Agile system may be the best way to bridge the gap.
Agile technologies & their impact on your business
A successful Agile program requires more than a company philosophy or culture. As the demand for digital experiences increases, insurers can leverage new technology to reduce processing for new claims, deliver faster payouts, and open new channels of communications for customers. The presence of Agile technology will also support faster product development through shorter development cycles, helping you respond to changing customer priorities and industry trends. If your goal is to create a positive customer experience, then digital innovation must be a top priority. If insurers removed manual processes and replaced them with automation, they would be better equipped to identify current product weakness and make the necessary adjustments.
However, how do you determine which technology is best? When you’re evaluating new technologies, you should be considering the system’s information sharing, scalability, and your ability to upgrade. This type of functionality can dramatically support growth across different business channels by improving internal, external, and digital communications. Being Agile is more than just being fast; technology advancements can enhance responsiveness throughout your organization and will drive future innovation, helping you enter new markets and differentiate your business.
As insurance companies explore new ways to improve customer experiences through the use of digital technology, the key to maintaining your competitive edge will lie in your ability to scale Agile processes across your organization. The benefit of increased agility will help your organization adapt to new market changes and provide a new strategic focus. There will always be a need for insurance, but it is only through innovation and continuous improvement of products and services that insurance institutions will distinguish themselves in the market.
