Ensono Commissioned Study Finds 99 Percent of Insurers Are Struggling to fund their Digital Transformation Processes
Ensono released a new commissioned study, conducted by Forrester Consulting on behalf of Ensono, evaluating the status of digital transformation in the insurance industry.
The study reveals 35 percent of insurance decision-makers say rising customer expectations is the top driver behind digital transformation, ranking ahead of other business drivers like increasing upsell/cross-sell opportunities (27%) and deriving better data insights and predictive analytics on customers (27%). Forty-six percent of insurance leaders admit that improved application performance overall is the most important IT change to make for improved customer experience, demonstrating how evolving customer expectations are forcing insurers to re-engineer their current IT infrastructures.
With a tremendous amount of customer data living on legacy systems, combined with the need to access this data more quickly, digital transformation is a leading priority throughout the insurance industry. In fact, all respondents said accessing data in legacy systems is a critical issue their businesses face. Insurers are finding it difficult to keep up with customer expectations, as legacy systems for claims processes, billing and payments and underwriting have become more demanding of IT departments.
“The insurance industry faces many unique challenges when it comes to digital transformation and many have expressed concern when it comes to their ability to deliver high quality digital experiences for customers,” said Ken Harper, director of product and technology at Ensono.
“Legacy technology is not going away, but insurance companies can no longer rely only on this technology. Insurers will be successful in their digital transformation when they factor both new technology, like the cloud, and legacy systems into the execution of the digital transformation strategy.”
The study found insurers are implementing IT changes to increasingly leverage hybrid cloud to ensure a better customer experience. About 40 percent of respondents believe the cloud offers better reliability and is a strong solution for improved customer engagement. Relying on cloud technology allows insurance carriers to make data more accessible and cull real-time insights.
“Insurance organizations that address their infrastructure challenges and make the decision to digitally transform are building momentum for future growth,” said Harper. “Those who invest in an IT infrastructure, finding the right balance between legacy platforms and the emerging cloud, will have the ability to respond faster to customer needs while lowering operational costs.”
Ensono set out to find the largest IT challenges for insurance decision-makers, commissioning Forrester Consulting to survey 160 U.S. insurance organizations.
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