The digital shift in insurance: Open GI’s strategy for modernizing services

This article was produced in partnership with Open GI.

Confronted with intense competition from innovative, technology-driven startups and growing consumer demands for seamless digital services, the traditionally conservative insurance sector has been actively pursuing digital transformation for several years. According to a Thomsons Reuters report Global insurance IT spending is expected to reach £287 billion by 2025.

Head of Digital Product, Paramjit Singh at Open GI -insurance software providers for brokers, MGAs and insurers – sees digital innovation as a vital component of the industry’s future. Singh’s attraction to Open GI was rooted in its commitment to change and innovation. He says, “”I was drawn to Open GI because of its commitment to undergoing significant change. The desire to be part of that transformative journey was a major deciding factor for me.”

The company’s suite of digital tools, from quote and buy solutions to self-service portals, is designed to streamline the purchasing journey, enhance customer service, and integrate seamlessly with aggregators and data enrichment services for better pricing insights.

Digital’s dual edge: opportunities and challenges

Digital technology offers a plethora of benefits, from operational efficiencies to improved customer engagement. Singh emphasizes that digital tools enable brokers to manage policies more effectively, offering a frictionless experience to customers akin to that of leading online services like banking apps, Uber, and Amazon. The demand clearly exists, survey by Capgemini shows over 75% of insurers plan to collaborate with insurance technology firms to enhance customer experiences. However, the journey is not without its challenges. The onset of the pandemic has not only expedited this shift but also highlighted the critical need for digital innovation, albeit in a more challenging environment, leaving many brokers playing catch-up. The industry’s traditionally slow pace in adopting new technology is now being tested by changing consumer behaviors and expectations.

Singh says, “Digital transformation is not just about technology; it’s about catering to changing consumer behaviors and expectations. The pandemic has significantly accelerated this shift, making digital adoption an imperative for brokers.”

Navigating customer expectations and security concerns

The Head of Digital Product points out that the digital shift is largely consumer-driven, with customers expecting quick, streamlined processes akin to those offered by other online services. This demand for speed and convenience is pushing brokers towards digital tools that can provide such experiences without sacrificing personal touch. Moreover, data security remains a paramount concern, with Singh highlighting the importance of encryption, regular security checks, and cybersecurity measures to protect against increasing threats.

Singh highlights that reluctance often stems from both cost considerations and a lack of understanding of the technology involved. While many are familiar with basic online shopping websites and portals, the challenge lies in leveraging these platforms further, such as harnessing data effectively and adopting an omnichannel strategy, which includes integrating live chat and AI virtual assistants. This approach aims to provide a seamless experience, where customers don’t need to repeat information across different channels, from online to phone communication.

He notes, “The conversation around AI and machine learning is pervasive, yet there’s a gap in comprehending its practical benefits. Diving into AI without a solid foundation can be premature. A customer-centric strategy is essential, paving the way for advanced systems like those powered by natural language processing (NLP). These technologies enable assistants to understand and mimic human conversation, offering diverse applications, from online customer support to streamlining tasks.”

Integrating such AI capabilities can also enhance telephone services, potentially reducing call durations by handling preliminary inquiries through automated voice responses before connecting with a live agent. “Yes, there’s an initial outlay but it leads to cost efficiencies over time. By shortening calls, call center staff can be redirected to other valuable activities, optimizing their roles,” he further details.

Future direction and forward thinking

To gauge the success of digital initiatives, Singh suggests monitoring key performance indicators (KPIs) such as adoption rates, customer satisfaction, operational efficiencies, and conversion rates. These metrics can offer valuable insights into the effectiveness of digital tools and areas for improvement. Looking ahead, Open GI aims to further enhance its digital offerings by exploring new technologies and gathering feedback from brokers to address the industry’s most pressing challenges.

Providing tangible benefits, such as cost savings, is key since that’s a primary concern for brokers. These savings then contribute to better conversion rates, indicating the efficiency of policy renewals or updates. Analyzing conversion rates and instances of abandonment allows for the optimization of customer journeys.

The goal is to enhance and expand digital services by building upon existing products and incorporating new technologies, with a focus on integrating insights from brokers. This approach helps in understanding the challenges brokers face, particularly with time-consuming repetitive tasks, and in developing solutions tailored to address these issues effectively.

Open GI is set on preserving the invaluable role of insurance brokers rather than bypassing them with digital sales methods. The company understands that the personal touch provided by agents, through one-on-one interactions, remains irreplaceable. Such interactions, where an agent can directly address a client’s personal circumstances—like the well-being of their children in unforeseen events—highlight the importance of human connection in insurance sales.

Despite this, Open GI acknowledges the growing demand for digital innovations in the marketplace. These digital processes are not intended to supplant personal interactions but to augment the efficiency of agents. The goal is to streamline sales and administrative tasks, ensuring that paperwork, which previously could consume an entire day for a client, can be completed more swiftly and efficiently. This approach reflects a balance between leveraging technology to enhance operational efficiency and maintaining the personal advisor-client relationship that is central to the insurance industry.