Like many people working with the Insurance industry, I have followed the Wolters Kluwer annual summary of market conduct exams for as long as I can remember. What I find most amazing is despite all the fines and actions imposed by state regulatory agencies, year in and year out, the top-ten findings have remained consistent.
As I review this year’s list, certain themes consistently come to the forefront:
- Time sensitive business processes * Inability to leverage business rules
- Lack of repeatable outcomes
- Poor and incomplete documentation * Lack of institutionalized business knowledge
- Failure to understand what your data is telling you
Many organizations in this sector are struggling with business transformation strategies to rectify these issues, which puts them at risk for financial penalties, less-than-optimal experiences for their customers and brand damage because of a reticence to move away from “the way things have always been done.”
It doesn’t help that many of the estimated 2.6 million individuals employed by insurers today will retire very soon. Some estimate that as many as 400,000 positions will have to be filled in just the next few years. As senior people leave the industry, years of experience and institutional knowledge go out the front door. Without experienced personnel, mistakes happen — and important tasks fall through the cracks, leading to negative Market Conduct findings.
The insurance industry faces a changing demographic customer base that sees it as just one industry among others. As an insurer, you are not judged based solely on your direct competition. Other customer service experiences have created a new level of customer experience expectations, making it harder than ever to deliver a positive customer experience. In other words, today’s customer asks: why isn’t it as easy to do business with my insurer as it is to do business with Amazon?
Insurers feel caught between a rock and a hard place: already facing difficulties with business processes and record keeping practices, they’re finding that those with the knowledge to plug the gaps are retiring in droves. To make matters worse, today’s customer base has unrealistic expectations and knows that your competition is only a mouse click away.
Change can be difficult, painful, and disruptive. But in an industry where providers are often criticized for poor/incomplete documentation, missed processing deadlines, and/or overlooked processing steps, implementing strategies and solutions for improving the manner in which business-critical data and processes are managed is more paramount than ever.
Digital Transformation Unifies People, Processes, Data and Insight
Digital Transformation will not only help to mitigate risk and lower the likelihood of incurring regulatory fines, it will also enable you to become laser-focused on the customer experience.
One of the keys to accelerating business growth is to automate mundane, low-value tasks and leverage touchless processes wherever possible so that employees can focus on the work that really needs to be accomplished. Capture and leverage the years of business expertise represented by experienced workers to ensure harmony and consistency in business processes and outcomes. Finally, gain control over the explosion of information within your organization by applying analytics and machine learning to maximize efficiencies and business value across the organization.
By nature, financial services organizations are focused on customer loyalty, customer recommendations, and products-per-household to be successful – and the insurance industry is no different. Success in financial services comes as a byproduct of trust — trust that can only come from delivering a superior customer experience.
Market Conduct Exam Data Points to Shortcomings in Delivering on Mandates
At Nuxeo, we want to help you take on market conduct exams, empowering you to transition your culture and take full control of the information and business processes that are central to delivering a superior customer experience.
Let us show you how the Nuxeo platform can help you quickly deliver on customer expectations, using content services and case management solutions to address the common negative findings across the insurance industry. We can help you transform your data into a valuable corporate asset that delivers actionable information.
Reach out to us today at nuxeo.com to see how we can help transform your company in ways you may not have imagined.