Is it time to rethink your ERP?
ERP selection: how to maximize the benefits?
Insurance companies, due to the technical nature of their business, have a historical need for advanced technologies embedded in their core operations. Their primary processes—from accurately calculating portfolio risks to claims assessment and premium payouts—rely on complex algorithms applied to large volumes of simultaneous cases.
If this system is not well-calibrated and up to date, the entire business is at risk. Insurance is one of the most technology-sensitive sectors and often a pioneer in adopting new innovations.
In Brazil, the industry is experiencing growth, with revenue reaching BRL 388.03 billion in 2023—9% higher than in 2022, according to Susep (Superintendence of Private Insurance) data. Despite this growth, the Brazilian insurance market remains highly competitive, with 131 operators active in the country.
In this context, CIOs of insurance companies must stay vigilant, identifying the best use cases in their businesses that can benefit from recent technological innovations such as GenAI and Intelligent Automations to shorten the value capture cycle and gain a competitive edge.
Key use cases highlighted by Gartner
According to Gartner, this market is investing in innovative solutions that are shaping the future of the insurance sector. We highlight some of them below:
Claims Process Automation
Insurance companies aim to automate the claims process, from reviewing FNOL (First Notice of Loss) emails to setting up claims in the management system, reducing the need for manual intervention and increasing efficiency.
Invoice and accounts payable optimization
Optimizing the accounts payable workflow by automatically processing invoices and enabling stakeholders to view the current status of invoices, saving time and resources.
Catastrophe modeling
Risk management platforms help insurers integrate catastrophe modeling data into the underwriting process, enabling robust and efficient analysis of multiple risks within a single application.
Data Security and Protection
The use of Artificial Intelligence to protect against email attacks and other cyber threats, ensuring the security of customer and company data.
Frauds
Insurers focus on fraud detection solutions and the use of AI to analyze claim patterns, aiming to identify suspicious behaviors and potential fraud in policyholder claims, improving the efficiency and accuracy of processes.
Customer Experience as a key factor
Despite benefiting from advanced technologies for many decades, the sector faces a constant challenge to improve the experience of its end customers and sales channels. Historically perceived with distrust by customers, who get lost in countless rules and fine print, insurers have been seeking to expand the use of more modern technologies to simplify the relationship with their clients, bringing more transparency and a better experience throughout the entire customer journey.
According to the research "Global Insurtech Market — Growth, Trends and Forecast (2020-2025)," the insurtech market will grow from a global investment level of USD 5.48 billion to a forecast of up to USD 14 billion by 2025. Insurtechs are driving pressure on the market, promising to demystify the insurance purchasing process, which is prompting more traditional companies to prioritize significant investments in projects aimed at improving the customer experience, journey, and sales force.
Knowing how to align the use of advanced technologies with addressing business challenges is a crucial skill for this sector. Having a partner who can bring industry-specific insights along with technological and strategic know-how in digitalization can help accelerate the realization of benefits.
How we have been helping our clients
Our cases have been driving the efficiency of our clients' core businesses and enhancing the experience of their end users. Below, we share two of our cases with companies in the insurance sector:
Claims analysis automation
Claims analysis is one of the key steps in the value chain of insurers. Aligned with the goal of operational efficiency, we assisted a large multinational insurer in automating, using RPA technology, its claims analysis process involving total loss. Our involvement resulted in:
- A 70% reduction in process execution time;
- A reduction in errors caused by manual processes;
- In less than 5 months, a return of nearly 500 hours to the business, which could be redirected to more strategic activities.
Improvement of the insurer’s sales force journey
It is common for insurers to have their sales force composed of thousands of brokers, who play a crucial role in revenue generation. The significance of this team led one of our clients to approach us to carry out a project aimed at improving the experience of these key players. We then executed a comprehensive project to enhance the sales force experience for a global insurer, achieving results such as:
- Centralization of communication with this audience, eliminating redundancies;
- Increase in the speed at which relevant information reaches the sales force, positively impacting the more assertive offering of their products in the face of competition.