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The Digital Insurer: 6 Keys to Being a Digitally Transformed Insurer

By  Erik Raper Erik Raper  on 2016-04-07 16:45:33  |  Featured in  Insurance
Erik Raper
Posted By Erik Raper
in Insurance
on 2016-04-07 16:45:33

Digital.Transformation.Insurance.2016.jpgInsurers are increasingly creating value by using digital tools and technology in a number of innovative ways. 

So says global research firm McKinsey & Company in The Making of a Digital Insurer, a 24-page report that reflects the path to enhanced profitability, lower costs and stronger customer loyalty for the insurers - if they embrace a digital transformation journey.  

Why? To reap the full benefits of the digital era, insurers should aspire to become digital firms. Digital firms, according to McKinsey, leverage technologies such as mobile, social and cloud to make better decisions, automate processes, deepen their connection with customers, employees and intermediaries, and pursue profitable innovation - all at a rapid development pace.

Furthermore, the most successful digital firms across all industries are distinguished by the degree to which digital is integrated at all levels and functions of the enterprise. Digital informs everything from strategy and organizational structure to day-to-day operations and workplace culture, according to industry think tank McKinsey. 

Read Also: Digital Transformation Is Going Mainstream

Raising The Digital Bar 

Today, the digital bar for insurers is high and rising, as McKinsey emphasizes. Those companies that can meet this challenge will build greater customer loyalty, cut costs and improve profitability. So, how do insurers embrace the digital journey? Based on work with carriers and research on the qualities that distinguish digital leaders across all industries, McKinsey has developed a perspective on how insurance management teams can set a course to attain digital excellence - boiling it down to what McKinsey refers to as six dimensions. 

Digital.Transformation.Insurance.Market.2016.jpgWhat are the six dimensions for digital transformation?
  • Strategy: A digital strategy adapts to rapid industry change while supporting overall business aspirations.

  • Customer-centricity: Digital tools improve the customer experience at every step in the decision journey, and beyond.

  • Digitizing Business Processes: Processes are reimagined from a zero base, reducing costs and errors, and boosting customer satisfaction.

  • Organization: The corporate culture, approach to talent and organizational model all support digital excellence.

  • Technology: Two-speed IT allows for rapid digital development and ensures that transactional systems are safely maintained.

  • Analytics & Decisionmaking: Data from both internal and external sources is gathered in real time and mined for actionable insights.

Final Thought

The McKinsey report suggests the optimal approach to digital transformation combines short-term steps with more measured, long-term projects. Today, insurers are already demonstrating the value that a digital approach can deliver through improved connectivity with clients and intermediaries, better decision-making, cost savings from automation, and as a springboard for business model innovation, as emphasized by McKinsey. The choice insurers face today; however, is whether to simply invest in digital capabilities ... or become digital insurers

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Erik Raper

Erik Raper

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Erik Raper heads Paragon’s Marketing and Advisory Services teams across focused industries. In this role, Mr. Raper leads his team to bring deep industry experience, rigorous analytical capabilities and a pragmatic mindset to clients’ most complex business problems. Mr. Raper’s team of marketing and strategy professionals work with Paragon’s Industry Leaders in the development of key go-to-market solutions which align to Paragon strengths and are essential to achieving clients’ business imperatives.

Before being appointed to his current position, Mr. Raper has served several key roles at Paragon including Director of Strategic Solutions Sales, Vice President of Strategy, and leader of Advisory Services. Mr. Raper guided the development of a suite of straight-through-processing (STP) solutions that focused on delivering business value–expanding Paragon’s Fortune 500 clientele and establishing the foundation for the firm’s brand platform: "Improving the Way Work Gets Done."

Prior to his appointment at Paragon in 2004, Mr. Raper spent seven years with Prudential Financial. As a vice president, he was instrumental in leading Prudential through a major operations and technology re-engineering in support of the company’s initial public offering. Preceding his employment with Prudential, he spent seven years with AT&T in various Marketing and Strategic Planning positions.

Mr. Raper holds a B.A. in Marketing from Columbus University, Metairie, Louisiana.

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