Digitalization will ultimately be the foundation on which insurers will build new experience management strategies to connect directly with customers and will increase market share. The rise of smart digital platforms has transformed consumer expectations. These digital-first experiences point the way for insurance companies to retake their place in their customers’ lives – and to remain relevant and competitive. Thus, digital transformation is the only journey, and you need a set of established strategic priorities to achieve all the goals. So, this article discusses industry-specific features for the engineering, construction and operations industries offered by RISE with SAP’s Business Transformation Service.
Let us begin by defining strategic priorities and their benefits for Insurance Companies!
Data-driven Insights
Insurance companies will assess all relevant unstructured sources of information about policy applicants using machine learning data. Using historical data processing, underwriters can use machine learning to manage complex risk assessments, product pricing, and choose the best employee follow-up procedures. As a result, they will be able to recommend the best cross-industry products for the client based on their needs and profile. Predictive analytics will be used to choose the most appropriate claims reserve amounts, while data-driven analytics will be used to monitor the progress of claims processing and overall claims management performance.
To better understand this strategic priority, let’s look at a current example of how an organization operated before and after their digital transformation to better grasp this strategic aim.
Prior to transformation, the organization’s functionality was:
- Product management predetermines and standardized products.
- Automation of customer interaction is challenging.
- Customizing marketing efforts to meet customer needs is challenging.
- Any customer interaction received cannot be applied to any other insurance business lines.
Post transformation, the organization’s functionality was:
- A chatbot used by a customer request an address change.
- The insurer evaluates currently offered goods and services and automatically updates them.
- Based on the customer’s driving history, the insurer promotes safer driving habits using an electronic driving coach assistant.
- The homeowner policy will be automatically transferred to the new address upon the address change.
- An insurer can increase customer satisfaction by providing individualized services and swift, affordable product delivery.
Now you may be asking, “How can RISE with SAP helps us?”. Here are the primary business capabilities they offer to assist you in reaching your objectives:
- Find out important information about external Internet of Things (IoT) data, insurance operations data, marketing data, and financial data that uses intelligent technologies like ML to derive intelligent insights.
- Utilize a data-driven influence with a reimagined impact on product lifecycle and process.
- Complete financial flow management and support for legal compliance.
- To deliver a comprehensive digital experience, a data-driven single view of customers, products, quotes, and policies is needed.
- 360-degree customer view capabilities and real-time, in-memory operational reporting across the core insurance module.
Top Value Drivers
The major value drivers in the engineering, construction and operations companies post successful deployment of SAP S/4HANA are:
- 5%–10%Improvement in premium income growth
- 10%–20% Reduction in time to market for new products
- 5%–10% Reduction in customer churn
(Note: Data was taken from SAP’s statistics)
Conclusion
To summarize, the success and growth of insurance companies is dependent on digital transformation, and SAP S/4HANA is a one-stop solution that can provide intelligent and industry-specific benefits. If you want to learn more about SAP S/4HANA or other solutions that can assist enterprises in the finance industry, feel free to contact us!
