The role of finance in the digital transformation
of the insurance industry
How can finance accelerate this move towards digital transformation?
Businesses across industries are transforming their internal processes to accommodate the technological revolution, and insurance companies need to follow suit—and soon—to avoid being left behind.
As the business world slowly comes to grips with the aftermath of the pandemic-driven economic crisis, many industries—including the insurance industry—are turning to technology to deliver uninterrupted services to their customers and to overcome the challenges brought forth by the COVID-19 pandemic. All while reducing their operational cost to survive the economic depression.
Even during the height of the pandemic, technology was the tool that enabled insurance companies to conduct regular business operations, albeit in a restricted capacity. Business operations that played a crucial role in resurrecting many businesses from the brink of collapse as lockdowns and curfews severely curtailed business operations, leading to a significant loss in revenue.
That said, the insurance industry now finds itself at a critical juncture; does it move forward in the new normal with its newly adopted technological tools or revert back to the pre-pandemic way of conducting business?
Data reveals that now, more than ever, insurance policyholders prefer to be insured through technologically-enabled insurance providers. Industry players who leverage outdated solutions for underwriting claims and administrative processes are faced with the risk of losing their customers to competitors who are better equipped to face the digital revolution.
What this means for insurance companies is that adopting technological tools and aligning their processes with the digital revolution is the best path to surviving in the post-pandemic business landscape.
This adoption will take considerable effort to overhaul existing processes to leverage the optimisation of procurement, finance, and project management functions.
Embracing digital transformation by optimising core business functions
While Industry 4.0 has been beckoning the insurance industry for several years now, insurance providers were slow to respond and transform their processes to facilitate the industry-wide adoption of technological solutions.
What this has meant is that many organisations within the insurance industry are lagging behind when it comes to getting up to speed with the ongoing digital transformation. Until of course, the global healthcare crisis made adaptation a necessity.
This has exerted significant pressure on insurance providers—smaller insurance companies, in particular—to initiate change from within to keep up with the demands of the modern digital environment.
It is clear that many insurance companies require a systematic shift from the top-down to optimise core business functions and support the introduction of Industry 4.0 techniques. While this can add value to the processes of insurance companies, optimising core business functions is not possible without a stable and resilient business framework.
At Kronos Group, we are committed to helping you build workflows that enable you to embrace the technological changes happening across the world and create a resilient, innovative business framework.
Our pragmatic solutions in fields such as procurement, finance, and project management can help insurance providers to do more than just adopt innovative solutions to respond to the demands of the market. Our experience and insight help companies embrace digitalisation and create the future of insurance operations in the long term.
Supporting the adoption of technology through your finance function
The adoption of technology is hugely influenced by how swiftly players in the insurance industry can align their key business functions including finance, administration, and service delivery with the requirements of Industry 4.0.
Aligning core functions to meet digital transformation requirements, however, is easier said than done. Many companies must contend with how this transformation will impact their day-to-day operations in the short term.
Any significant disruption to core functions will, after all, have a direct impact on customer experience.
Enlisting finance advisory support from industry professionals such as Kronos Group can help you formulate strategies that drive a seamless transition to the digital economy.
Through our role as consultants to leaders in the insurance industry, we have created strategies that bring the benefits of:
A-Z transformation in just five months
Six-month global training programmes
Support from industry specialists to deliver lasting value
Two million euros worth of savings in four months
Our commitment to supporting you through your digital transformation
Kronos Group’s team of finance professionals are skilled in the art of elevating your company transformation through our streamlined and integrated procurement, finance, and project management strategies.
Our approach to supporting your digital transformation is facilitated by our range of optimised services, including:
Functional transformation
Cost optimisation
Digital transformation
Swift maturity assessments
A spend management platform
Outsourcing services
Training programmes
Speak to us!
We support our clients with their strategic growth by leveraging our extensive knowledge and challenging your business perspective with cutting-edge solutions.
Benefit from our dedicated consultants’ skill in the fields of procurement, finance, and project management by getting in touch with us today.
