# Meeting both operational and customer demands – how insurance can adapt in a disrupted world Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-02-15 Category: INSURANCE Category URL: https://financedigest.com/category/insurance Meta Title: Adapt and reinvent: the keys to better insurance Meta Description: Discover how insurers can leverage technology to meet customer expectations and overcome disruption in the insurance industry. URL: https://financedigest.com/meeting-both-operational-and-customer-demands-how-insurance-can-adapt-in-a-disrupted-worldhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd110418-8-1736838570597-compressed.jpg) _By **Adam Bimson,** Chief Customer Officer, Vuealta_ Insurance relies on the ability to be able to effectively plan, model and predict the likelihood of future events. But a disrupted landscape, heavily impacted by the pandemic, has made these three things increasingly challenging for the insurance industry. On top of dealing with remote workforces, outdated technologies, and customers with ever evolving and heightening expectations, providing good [customer experience](https://www.financedigest.com/insurers-ready-to-fight-back-against-poor-customer-experience.html "Insurers ready to fight back against poor customer experience") and meeting demand has never been more difficult. These [customer expectations](https://www.financedigest.com/banking-from-anywhere-embracing-technology-to-exceed-customer-expectations.html "Banking from anywhere: embracing technology to exceed customer expectations") are very much driven by a growing focus from consumers on their health and the feeling of needing to better protect themselves. [Separate reports have found](https://www.cnbc.com/2020/04/03/demand-for-wills-surges-as-coronavirus-boosts-financial-planning.html) that the number of people making wills has risen at the same time as life insurance has seen a spike in interest. And for commercial lines, corporate [customers are carefully scrutinising their current and future business disruption insurance](https://www.financedigest.com/how-artificial-intelligence-can-help-improvethe-customer-journey-in-insurance.html "How Artificial Intelligence can help improve the customer journey in Insurance"), again with an eye on increasing their cover. Increasing demand and ultimately more custom seems like a good thing, and of course most of the time it is. But what about when [insurers](https://www.financedigest.com/different-countries-different-insurance-cultures-how-insurers-can-adapt-their-products.html "insurers") aren’t equipped to handle such growth in such a short space of time? No [business wants to fail due to too much success](https://www.financedigest.com/why-seo-is-crucial-for-business-success-post-pandemic.html "Why SEO is crucial for business success post-pandemic"), but if insurers want to ensure they leverage the opportunity afforded by recent disruption, they need to be able to adapt quickly. Whilst there may be an uptick in demand in some areas, the [market is still awash with competition](https://www.financedigest.com/industrial-gauges-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Gauges Market Competitive Growth Strategies Based on Type, Applications, End User and Region") and tight margins. So, there is little time to waste. Added to this are the demands of other disruptive forces, such as new regulations like [IFRS17](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-17-insurance-contracts/), which is due to come into force in January 2023. Two years may seem a long time, but the amount of work needed to meet its requirements is not small – insurers will have to embark on significant organisational, data and [technological change](https://www.financedigest.com/how-advanced-self-service-technologies-are-changing-the-face-of-finance.html "How Advanced Self-Service Technologies are Changing the Face of Finance"). And they need to do so, now. **Adapt and reinvent: the** [keys to better insurance](https://www.financedigest.com/as-the-cost-of-living-bites-tackling-insurance-quote-manipulation-is-key.html "As the cost of living bites, tackling insurance quote manipulation is key") This all points to the [need for a fundamental shift in the way insurers](https://www.financedigest.com/breaking-down-the-types-of-insurance-you-need.html "Breaking Down the Types of Insurance You Need") operate in not one, but two areas. Firstly, there is the need to adapt their operational model so that the effects of disruption, whether driven by the pandemic or regulation, do not impact the [experience their customers](https://www.financedigest.com/why-transforming-the-back-office-is-key-to-customer-experience-success-in-financial-services.html "Why Transforming the Back-Office is Key to Customer Experience Success in Financial Services") receive. ![Adam Bimson](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/adam-bimson-002-450x674-1736838570723-compressed.jpg) Adam Bimson Secondly, they need to reinvent their [business so that the services](https://www.financedigest.com/more-companies-investing-heavily-in-business-services-software.html "More Companies Investing Heavily In Business Services Software") and products they provide are both appropriate for customers and capable of withstanding future upheaval. In both instances, technology, or rather the ability to consolidate, analyse and action data-driven [insights through the use of technology](https://www.financedigest.com/nutragenomics-market-overview-forthcoming-technologies-future-trends-latest-insights-by-share-outlook-till-2022-2029.html "Nutragenomics Market Overview, Forthcoming Technologies, Future Trends, Latest Insights By Share, Outlook Till 2022-2029"), may offer the solution. Why? Because as with so many things, the issues that [insurers face are built on data](https://www.financedigest.com/how-data-is-revolutionising-car-insurance.html "How data is revolutionising car insurance"). Being able to harness it gives them a much better chance of [tackling those issues](https://www.financedigest.com/the-lack-of-female-leaders-and-how-to-tackle-this-issue.html "The lack of female leaders and how to tackle this issue") head-on. For instance, when it comes to operational models, better visibility ( [powered by data), combined with accurate scenario-based modelling and planning, will aid the development of a more agile organisation](https://www.financedigest.com/power-to-the-people-how-consumers-are-calling-the-shots-when-it-comes-to-data-privacy.html "Power to the people: how consumers are calling the shots when it comes to data privacy"). Whether it’s adapting to a reduction in staff headcount as infections spike in different parts of the country or anticipating when [customer service](https://www.financedigest.com/how-customer-services-has-changed-during-covid.html "How Customer Services Has Changed During Covid") functions may be impacted by local lockdowns and increased restrictions. Being able to identify [problems and react accordingly will be critical to delivering operational](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems") continuity and, therefore, unimpeded customer experience, and data lies at the heart of this. Then there’s how it can be applied to evolving products and [services for customers](https://www.financedigest.com/how-can-financial-firms-improve-customer-service-after-the-pandemic.html "How Can Financial Firms Improve Customer Service after the Pandemic?"). Customers, whether consumers or businesses, are going to want to feel [covered by their insurance](https://www.financedigest.com/business-insurance-what-does-it-cover.html "Business Insurance: What does it cover?") – insurers will want to balance this with the need to not overexpose themselves to events that could appear out of nowhere. Here’s where the combination of accurate [data use and the right digital](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") tools, such as artificial intelligence-driven solutions, can help insurers take a major leap forward. Premiums can be adjusted, and more [dynamic products tailored to the needs of customers can be developed](https://www.financedigest.com/dynamic-positioning-system-market-notable-developments-geographical-outlook.html "Dynamic Positioning System Market: Notable Developments & Geographical Outlook"). Being able to use data more effectively is going to play a major role in complying with IRFS17, both in getting ready for its implementation and [meeting its requirements in the years to come](https://www.financedigest.com/veterinary-tables-market-rise-to-meet-large-demand-in-coming-years-fact-mr-study.html "Veterinary Tables Market Rise To Meet Large Demand In Coming Years, Fact.MR Study"). Complying with a reporting standard will [drive an investment in data](https://www.financedigest.com/how-alternative-data-drives-e-commerce-success.html "How Alternative Data Drives E-commerce Success") and technology, but harnessed correctly, that investment can unlock wider benefits – the same commitment can be used to cover off all the challenges already covered. In short, those that use technology effectively, and plan for scenarios appropriately, are more likely to build the types of products and services that fulfil both those objectives, and ultimately keep customers [coming back](https://www.financedigest.com/twitter-asks-some-laid-off-workers-to-come-back-bloomberg-reports.html "Twitter asks some laid off workers to come back, Bloomberg reports"). **Making the impossible, possible –** [planning for what comes next](https://www.financedigest.com/austria-plans-to-bring-budget-deficit-within-3-of-gdp-next-year.html "Austria plans to bring budget deficit within 3% of GDP next year") As with almost all other sectors, insurers fundamentally need to revamp their [business models](https://www.financedigest.com/apis-open-banking-and-new-business-models.html "APIs, Open Banking and New Business Models"). Technology should form the foundations for this, as legacy [technologies simply cannot keep](https://www.financedigest.com/how-the-global-insurance-market-will-keep-pace-with-evolving-risks-through-data-analytics-and-technology.html "How the global insurance market will keep pace with evolving risks, through data, analytics and technology") up with today’s fast-paced environment. What’s more, this [technology has to support](https://www.financedigest.com/uk-launches-270-million-pound-fund-to-support-green-heating-technology.html "UK launches 270 million pound fund to support green heating technology") a better use of data, offering a solution to both operational and customer experience challenges, as historical information can no longer be relied upon. Planning for the unpredictable may seem impossible, but by using a variety of data sources, and more importantly, by being able to connect them all and read them effectively, [insurers can ensure they continue to meet customer](https://www.financedigest.com/customer-engagement-in-the-insurance-sector.html "Customer engagement in the insurance sector") expectations while preparing their businesses for whatever comes next. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---