We’ve heard it time and again – the insurance industry needs to
adapt to the digital world. But while many have focused on the need to embrace digital distribution, or to offer self-serve facilities for customers via online channels, there could be a far more fundamental issue lurking underneath.
The use of paper documents is holding the insurance industry back from properly embracing the digital world, according to Danny Molhoek, general manager for North West Europe at Lexmark – a firm that provides solutions to the insurance industry globally.
“One of the main issues the insurance sector is facing is that, while small fintech firms are proposing innovative products that leverage new Internet of Things (IoT) technologies, traditional players are struggling to bridge the gap between paper and digital transactions,” Molhoek told
Insurance Business.
“The issue is deepened by the fact that, in such a mature and saturated market, traditional players are extending their offering to emerging economies, where the digital era is still burgeoning and paper is still predominantly used,” he went on to say.
As well being held back from adapting to technology-led products and services, the efficiency of the industry itself is being impacted by the use of old methods, according to Molhoek.
“Employees often spend a great deal of time manually processing paperwork for claims, and then having to correct the errors associated with keying in data,” he said.
What needs to be created, is a “bridge between both worlds,” where paper and digital can coexist and business processes become more consistent.
“Smart document capture solutions, for example, could leverage existing multifunction printer infrastructures to scan, verify, extract, index and route the information from paper documents, merging it seamlessly with the company’s digital data infrastructure,” he said.
“This could mean that many typical processes can be made much more efficient.
“As a result, insurance companies can stay customer-focused, providing an enhanced, efficient service that brings the old and new together harmoniously.”
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