In today’s digital world, “Technology” is transforming the insurance ecosystem not only on a large scale, but also on a fundamental level. As insurance companies are trying to manage the changing customer and partner expectations, there is an increase in competitive pressures and evolving payment methods, which can end up either a win or be hit for them.
Also, with most of the legacy and billing payment systems ill-equipped to deliver value in this changing landscape, they must consider new business models that can transform these conventional systems from a traditional finance-centric function to a more customer-focused functional environment.
But have you ever wondered how it can be accomplished? If you’re curious to know about the answer, keep reading the blog until the end.
Strategic Priorities of Insurance Industry
To begin this intelligent transformation, insurers should examine their entire business model and rebuild their business strategies around it. As a result, they are focusing on three strategic priorities outlined below to transform their organization into an intelligent enterprise.
- Digital Engagement
- Protection Services
- Data-Driven Insights
By the vision of 2025, most if the insurers will have transformed their businesses to engage with cross-industry ecosystem providers. Rather than just managing risk, the industry will concentrate on prediction and prevention. Thus, SAP S/4HANA aims to meet all the above requirements seamlessly by leveraging intelligent technology.
Thus, now let’s begin by understanding the challenges faced by the “Insurance Industry”.
Challenges faced before transformation
Insurance Companies face numerous challenges that limit their ability to fully realise the value of the Intelligent Enterprise. Few of the challenges faced by them are:
- Modernization of legacy systems
- Seamless customer experience
- Increased cybersecurity attacks
- Lack of customer data analysis
- Lack of IT Expertise
If you’re still unsure about what to do next, “Digital Transformation” is the only way to transform your company into a smart and intelligent enterprise.
Now let’s look at how SAP S/4HANA, an intelligent ERP system, can be used to address the challenges.
RISE with SAP for Insurance Industry?
Every enterprise must create new business models to avoid disruption, gain efficiencies to fund innovation, and transform mission-critical systems without putting the company at risk. Generally, organizations start digital transformations for three main reasons: Changing End-Customer Behaviour, Automated Intelligent Supply Chain and Digitalization of Construction.
Thus, RISE with SAP supports your business and digital transformation ambitions to unlock two sources of value:
- Enable value creation with differentiating business capabilities — Industry best and next practices for improving employee engagement, generating new revenue streams, and maximizing existing ones, increasing asset efficiency, increasing productivity, and ensuring long-term viability.
- Mitigate risk, reduce cost, and accelerate time to value with cloud delivery capabilities — Capabilities that improve transformation readiness, simplified consumption, increase operational resilience and lower overall TCO helps business to move to next step.
You might be wondering how RISE with SAP will help you in your transformation journey? So, let’s have a look at the advantages gained because of after the digital transformation.
Benefits gained after Transformation
S/4HANA assists the Insurance companies in achieving a smooth transition with numerous benefits such as:
- Increased effectiveness in maintain customer data
- Individualized customer service
- Better risk management strategy to avoid cyber attack
- Improved customer interaction and communication
To summarize, the success and growth of insurance companies is dependent on digital transformation, and SAP S/4HANA is a one-stop solution that can provide intelligent and industry-specific benefits. If you want to learn more about SAP S/4HANA or other solutions that can assist enterprises in the finance industry, feel free to contact us!