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!
In general insurance companies want to provide a consistent customer experience across all channels, including self-service portals and they try to interact with people and devices, as well as connect to external data sources, to create more efficient interaction models. With digital engagement, insurers can quickly bring relevant products to market that reflect both actuarial knowledge and real-world insights. To run their businesses more efficiently, insurers will have to incorporate new insights into the management of policies, commissions, claims, and reinsurance.
Consider the following real-world scenario to better understand this strategic priority: Riyaz and Glen were involved in a car accident and filed insurance claims with two separate companies, ABC Bank and KGF Bank, both of which only one-uses SAP system. Let’s examine the differences in how this insurance claim process is handled.
In ABC Bank, Riyaz has auto insurance. He contacts the customer service department after being involved in a serious car accident. The customer service center receives his accident notice, and the claim handler manually starts the follow-up procedures after registering Riyaz’s car accident issue. The process of repair is started once it has started. The customer service representative then looked for the source and bargained with the suppliers of the repair shops. After the repair is finished, the invoice for the correct party is printed, and the service provider is paid. They then close the insurance notice after receiving the client’s confirmation of the repair or service settlement.
Glen has auto insurance through KGF Bank. He calls the customer service department after being in a serious car accident and having his car severely damaged. Glen’s car accident issue is registered, and the follow-up procedures are started when the customer service center receives his accident notice. Sensors are used to find the first anomaly or loss notification during the initial process. The process is then started with Ariba Network, and the policyholder is informed of the claim’s status using a state-of-the-art user interface (UX) made possible by the SAP Fiori® UX. This network records “in-the-moment” customer feedback and responds to any issues right away. Additionally, it compares electronic invoices and starts payments automatically as part of the process. When SAP® Digital Boardroom receives the client’s confirmation of service settlement, it properly analyses claims notification and the time spent gathering the data. The claim is closed following this procedure.
To sum up, ABC Bank initiates the initial reservation process manually in Riyaz’s case, and only that specific claim holder oversees making revisions based on payments or reserves. While using machine learning in Glen’s case, KGF Bank automatically sets the initial reserve. Additionally, it automatically updates payments and reserve amounts.
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:
- Ensure that all customer interactions, including those with self-service portals, are seamless.
- Enabling insurers to quickly market pertinent products through digital engagement
- Utilize fresh perspectives to manage policies, commissions, claims, and reinsurance to efficiently run operations.
- Auto insurance predefined end-to-end customer journeys based on SAP S/4HANA that integrate commerce, service, and customer engagement across channels in the front, middle, and back offices are delivered ready to use.
- Automating core insurance operations with embedded intelligent technologies like machine learning and robotic process automation.
- Real-time analytics to manage, direct, and enhance operations throughout the value chain of core operations.
- New end-user interactions using the SAP Fiori® user experience capabilities across SAP for Insurance solutions.
Top Value Drivers
The major value drivers in the engineering, construction and operations companies post successful deployment of SAP S/4HANA are:
- Customer loyalty and their satisfaction have improved by 10%–15%.
- The conversion rate results in a 10%–20% increase in digital channel revenue.
- An increase in contact center FTE productivity of 15%–30%.
(Note: Data was taken from SAP’s statistics)
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!