The Digital Insurance Transformation Roads Not Taken
The infamous poem, The Road Not Taken, was written by Robert Frost as a joke, for an indecisive friend, who often lamented over whether the path they chose, was in fact, the right one. The dichotomy between the seemingly simple and yet actually complex dilemma of two diverging paths, may resonate with insurers who constantly weigh the choices of which direction is optimal for modernization.
Like the poem, many insurers have found themselves facing diverging paths, asking themselves a myriad of questions — should we be further along the digital path? Are we able to navigate through present conditions and prepare for future challenges with our current system? Is there a better route to providing modern, seamless experiences for our customers?
Innovation through new technologies continues to drive transformation across the industry, however those changes are still accompanied by a sizeable amount of uncertainty, complexity, and challenges. For many carriers, even though technology has enabled them to modernize, they find themselves at an impasse, saddled with redundant or parallel systems, or worse, a collection of disparate solutions, cobbled together and continuing to drain resource and increase costs. To keep pace with the ever-growing needs and expectations of customers, modernization is critical, yet given the significant tables stake and the size of the investment—insurers must exercise a healthy dose of caution. Whether selecting a standalone component, to enhance existing technology, a modern core suite, to enable insurers to streamline operations and capitalize on new market opportunities, or a digital layer, designed to deliver those next-gen capabilities, each path forward still causes insurers to ponder whether it is the right choice.
All to often, the “right path” is advertised well — the ability to transform into an agile, lightening fast, tech-enabled, customer-centered organization, but sometimes a picturesque narrative is designed to mask the hidden dangers, lurking around the corner. In a landscape heavily populated with solution providers and insuretech newcomers, all promising carriers the speed, simplicity, and ability to meet customer expectations, many do not fully understand the constraints caused by aging monolithic architectures and proprietary technologies, or worse, they have a ‘one-size’ fits all approach, and package solutions like a poorly planned destination escape. As with Frost’s poem, it is often difficult to see further ahead, as there are unexpected turns and other complexities, which can obscure an insurer’s view. This is especially true with digital journeys. From the subtle differences in capabilities, from holistic views of the customer to the larger, more prominent functionality like API integrations, AI, and Machine learning components, it is important that the destination is reachable, by whatever path an insurer chooses.
In a true partnership, the perils are clearly marked on the map, to ensure that a carrier’s journey is more than just scenic, its safe, its reliable, and it offers little room to lament the choice. Whether it is a quick journey fueled the need to simplify & reduce the number of superfluous systems or a more robust migration, to a future of cloud enabled, digitally capable technologies, when it comes to transformation, almost all the paths have been traveled. For those who are planning an excursion, sometimes having a guide, can help reduce the deliberation, as well as the consequences, and that can make all the difference.