Overcoming the barriers to digital transformation
7th November 2023Tweet
A comprehensive industry survey carried out by claims and repair management platform Pulse found that 86% of respondents have committed to a digital transformation strategy.
This figure was backed up by a live poll of delegates during ILC’s MGA Claims Conference, which was held in September in association with the MGAA.
The Pulse survey also revealed that industry investment in digital technology is expected to increase by 25% by 2026.
Driving this investment is a desire for improved efficiencies followed by a better customer experience. More advanced fraud detection and compliance was also cited as key motivators.
Addressing MGA Claims Conference delegates during Pulse’s session, ‘Claims through a digital lens: industry perspectives on the tech transformation in claims,’ Kevin Drake, Innovation Director, said, “The main factor driving digital transformation is that companies want greater efficiency in their claims journeys. They also recognise that customer expectations have changed and they now want an immediate response and a transparent next step.
“Technology can achieve both these things. It can identify and automate the simpler claims and then root the more complex claims to handlers based on their skills, priority and complexity. This will accelerate the customer journey and free up claims handlers to focus on the areas where their expertise and experience can be most beneficial.”
Increased levels of automation could be even more beneficial during surge events, which are becoming ever-more common.
But while 86% of respondents said they have digital projects planned, underway or completed, the Pulse research also identified a number of barriers that are either delaying digital investment or putting companies off altogether.
Cost pressures and proving a return on investment is one challenge, but even more significant is a lack of technical knowledge. This is preventing companies from first envisaging how technologies can improve processes and then implementing the change.
Emma Bazard, Strategic Client Lead, Pulse, said, “Respondents to our survey said the pace of change was a challenge and they were finding it hard to keep up with new technology. But no one can be an expert in everything and there is a lot of expertise in the supply chain; sometimes you need an external set of eyes to come in and assess the systems you have in place, identify the problems and them work out the solution.”
She said there is a growing trend for this hybrid development, which combines in-house expertise with technology partners to deliver efficiency and service improvements.
“New isn’t always better so you need clarity around the specific problems you want technology to solve, whether that’s AI, robotics or machine learning. Often the best solutions involve a combination of technologies,” said Emma.
ILC’s MGA Claims Conference was supported by Headline Sponsor Claims Consortium Group (CCG); Gold Sponsors: Activate Group, Carpenters Group, EDAM Group, Enterprise, LexisNexis Risk Solutions, Pulse, Value Checkers, and Wiser Academy.Tweet