Valuable resources are being wasted by inefficient insurance processes – exactly the kind that we built Profit Finder to eliminate.
Insurance companies have never been light on process. Long customer cycles, enormous data throughput and continual regulatory obligations should theoretically present endless opportunities for optimisation.
Naturally, then, such a process-heavy industry might be expected to have streamlined itself to the extreme.
Making up for lost time and money
Underwriters are spending around 90% of their time chasing data and only 10% of their time analysing and drawing meaningful conclusions from it. Handling applications and renewals can take up to 25% of the average brokerage or agency’s energy and productivity. Insurance claims leakage is thought to reach up to 30%. The list goes on.
Insurers can hardly afford to be this profligate. On top of mounting case backlogs and claims payouts after COVID-19, new IFRS 17 regulations are also looming large and the majority of firms are having to implement the new compliance standards as an additional responsibility to their ongoing work.
With all this in mind, attention should turn to immediate opportunities for cost savings and revenue generation.
The problem most insurers face is that they lack the technology expertise and empirical overview of their business to be able to quickly identify and act upon these opportunities.
Insurers are drowning in tech soup
Most insurance firms and brokerages are home to a jumble of fragmented systems. Many still rely on a complex tech soup of legacy IT systems that keep large amounts of data siloed across the organisation.
This results in data and information being stored in multiple places – management systems, emails, spreadsheets, e-Signature software, insurers’ rating systems – and essential time and money being lost to inefficient processes such as rekeying data across systems or downloading and uploading files from one place to another. According to Indio’s State of Insurance Renewals Report, over 64% of insurers spend over two hours per submission pre-filling and rekeying data.
Valuable insights are being missed out on too, with insurers struggling to connect their various technologies in a cohesive and cost-effective way. 79% of enterprises are struggling to leverage cross-platform synergies according to IDG’s 2020 Cloud Computing.
Insurers need a fast and effective way to gain an accurate overview of their tech stack and pinpoint exactly where operational shortcuts, cost reductions or value-adds can be made.
Insurance firms could be doing more to exploit game-changing opportunities across the board of insurance operations, including:
- Identifying which processes are under-resourced or acting as workflow bottlenecks
- Eliminating repetitive and tedious tasks of manual data entry that are occupying the time of skilled knowledge workers
- Automating time-intensive stages of the customer cycle including customer onboarding, FNOL and claims processing
- Improving access to instant data-driven insights to implement better risk selection
This is all a question of fine tuning your firm’s application of advanced technology – which is why we built Profit Finder.
Profit Finder: your business game-changer
Businesses need a fast, in-flight, risk-free and cost-effective way to overhaul the processes and technology driving their revenue. Profit Finder answers this need.
The product is a unique combination of AI-powered diagnostic technology and a bespoke transformation consultant. Together they take a holistic overview of the business and all of its technological components to produce a snapshot of areas ripe for automation and optimisation.
A recent study found the cost of inefficiency for insurance firms to average at $127,000 per year.
Our latest Profit Finder project surpassed this estimate, in just five weeks, with two key findings:
- We found that automation would save our client $250,000 per year using a combination of RPA and natural language classification to automate checking case, customer and order details.
- By looking holistically across people, process and tech, we were able to identify a further $550k worth of revenue gains across areas which had not previously been considered problematic.
Profit Finder uncovered three major insights:
- Customer service agents only spent 4% of their time actually speaking to customers.
- The team was overstaffed, meaning that they could take 20% more customer queries.
- Agents weren’t closing the chat once the customer left the conversation to avoid being placed back in the pool.
With an Emergence transformation consultant on hand we were able to identify immediate opportunities for improvement and build a robust, data-driven business case, bypassing long development schedules or bloated consultancy projects, with an agile and risk-free approach.
Interested? Book a Meeting to find out what Profit Finder can reveal about the cost of inefficiency in your business – and how Emergence can help you implement immediate revenue-generating solutions.