By: Brian Peccarelli.
Digital transformation was a line item on many business agendas long before COVID-19 came along. But the pandemic catapulted it to the top of the priority list for virtually every business in the world. Now, as we start to look past the immediate pandemic crisis response and toward a “new normal” where working-from-home is expected, the need for cloud-based infrastructure is a no-brainer and predictive analytics are essential. The pace of digital transformation has been dramatically accelerated — it’s not a conversation starter now, it’s a basic business requirement.
Consider the simple example of virtual claims processing in the auto insurance industry. In virtual claims, customers take a picture of their damaged vehicle and submit it directly to their insurer via mobile app. In early April of this year, during the height of the pandemic, Allstate estimated that more than 90% of all of its auto claims would be submitted via its virtual tools. That was up from 50% two weeks earlier. Before the pandemic, roughly 11% of auto insurance customers used virtual claims tools.
When the world does eventually get back to normal, whatever that may look like, there is no way that the insurance industry is going to go back to the old way of doing things. When compared with the traditional method — sending a claims adjuster to evaluate the damage, submitting a report, waiting for the information to be reviewed — the digital approach saves significant time and money and reduces the likelihood of error.
Source: CFO (2020)