Digital Transformation in the Insurance Industry
Summary
TLDRRay August, President of Insurance and Business Process Solutions at DXC, discusses the digital transformation in the insurance industry. Highlighting DXC's role in automating operations for 1900 global insurance customers, including 80 of the G500, he emphasizes the importance of efficiency and customer experience. With a focus on reducing human interaction in call centers and leveraging AI, DXC aims to revolutionize customer service and reduce costs, showcasing a successful case study with a 20x improvement in call routing.
Takeaways
- 📈 Ray August, President of Insurance and Business Process Solutions at DXC, is a leader in the digital transformation of the insurance industry.
- 🔢 DXC has achieved significant improvements in their services, including a 7x improvement in containment and a 20x improvement in intelligent digital call routing.
- 🌐 DXC serves a global clientele, managing 13 million policies and supporting 1900 insurance customers, including 80 of the Global 500 insurance companies.
- 🤖 Amelia, an AI tool, is utilized by DXC to enhance customer interactions, aiming to reduce human-handled calls from 80% to 10%, thereby increasing efficiency.
- 🏢 DXC operates as a business process outsourcing (BPO) provider, understanding the needs and challenges of insurance companies through managing their policies.
- 🛡️ The insurance industry is facing a paradigm shift with the rise of embedded insurance, where insurance is integrated into everyday transactions.
- 📲 Digital transformation in insurance is crucial for efficiency and growth, leveraging digital assets to streamline operations and customer experiences.
- 📈 The COVID-19 pandemic has accelerated the need for digital adoption in the insurance industry by at least a decade, impacting both customer behavior and workforce dynamics.
- 📉 Despite the push for digital experiences, the complexity of insurance products often necessitates human interaction, leading to high call center volumes.
- 💼 Millennials, known for their digital preferences, often struggle with understanding complex insurance products, highlighting the need for improved digital education and interfaces.
- 📊 DXC's partnership with Amelia has led to a successful case study, demonstrating a significant reduction in call center volumes and an improvement in customer satisfaction and operational efficiency.
Q & A
Who is Ray August and what is his role in the insurance industry?
-Ray August is the President of Insurance and Business Process Solutions for DXC, a company known for its impact on the transformation within the insurance industry. He has a background of over 30 years in transformation, having worked at PwC and Microsoft, and is currently driving change at DXC.
What is DXC's unique position in the insurance industry?
-DXC is unique because it is both a Business Process Outsourcing (BPO) provider and operates as an insurance company within its organization. It manages 13 million policies on behalf of its customers, giving it a deep understanding of the daily operations and challenges faced by insurance companies.
What is the significance of the 7x improvement in containment mentioned in the script?
-The 7x improvement in containment signifies a significant increase in efficiency, which is a key metric for measuring the effectiveness of processes within the insurance industry. It indicates that DXC's solutions have led to a substantial enhancement in how containment issues are handled.
How does DXC's approach to digital transformation differ from other companies?
-DXC's approach to digital transformation is characterized by its ability to achieve substantial improvements in containment, IVR authentication, and intelligent digital call routing at scale. It serves 1900 global insurance customers, including 80 of the Global 500 insurance companies, demonstrating its ability to deliver at scale.
What is the role of Amelia in DXC's digital transformation strategy?
-Amelia is an artificial intelligence solution that DXC has partnered with to enhance its digital transformation efforts. It is used to improve the quality of conversations, authentication processes, and call routing, leading to significant improvements in customer satisfaction and operational efficiency.
What challenges does the insurance industry face in terms of customer interaction?
-The insurance industry faces challenges such as the complexity of insurance products, which often require human interaction during the purchasing process. Additionally, there is a growing demand for digital experiences, but the complexity of insurance products can hinder the transition to fully digital interactions.
How has the COVID-19 pandemic impacted the insurance industry's operations?
-The COVID-19 pandemic has accelerated the need for digital transformation in the insurance industry. It has increased the volume of calls to call centers, while also reducing the number of available staff due to factors like the 'Great Resignation' and high absenteeism. This has put pressure on the industry to quickly adapt to digital solutions.
What is the concept of 'embedded insurance' mentioned in the script?
-Embedded insurance refers to the integration of insurance products into other consumer activities, such as offering trip insurance when booking a trip online or automobile insurance when purchasing a car. This presents a growth opportunity for insurance companies by making insurance more accessible and relevant in everyday transactions.
What is the current state of call center operations in the insurance industry?
-Currently, 80% of the calls to insurance company call centers involve human interaction, which is a high percentage compared to other industries. This is due to the complexity of insurance products and the need for personalized service. However, there is a significant opportunity to automate more of these interactions to improve efficiency.
What are the key objectives of DXC's digital transformation initiatives?
-DXC's digital transformation initiatives aim to reduce the number of calls handled by humans, improve customer satisfaction, increase operational efficiency, and drive down costs. The goal is to transition from 80% of calls involving human interaction to only 10%, leveraging AI and digital solutions to achieve this.
How does DXC's partnership with Amelia address the challenges of the insurance industry?
-The partnership with Amelia brings an AI solution that enhances DXC's capabilities in conversation quality, authentication, and call routing. This helps to reduce human interaction in call centers, improve customer experience, and make operations more efficient, which is crucial given the complex nature of insurance products and the growing demand for digital services.
Outlines
🌟 Introduction to a Digital Insurance Transformation Leader
The speaker introduces Ray August, the president of insurance and business process solutions at DXC, as a key figure in the insurance industry's digital transformation. Ray's impressive background includes significant roles at PwC and Microsoft, and his current work at DXC is highlighted by remarkable achievements such as a 7x improvement in containment, a 6x improvement in IVR authentication, and a 20x improvement in intelligent digital call routing. These accomplishments are demonstrated at scale, serving 1900 global insurance customers, including 80% of the G500 insurance companies. The introduction emphasizes DXC's unique position as both a BPO provider and an insurer, with 20,000 professionals dedicated to automating the insurance industry, and the importance of understanding the core challenges and aspirations of insurance companies in the digital age.
📈 The Imperative of Digital Transformation in Insurance
The speaker delves into the concept of digital transformation within the insurance industry, explaining it as the utilization of digital assets to enhance company efficiency and growth. Despite the common challenges faced by insurance companies, such as the complexity of their products and the high demand for human interaction, there is a clear trend towards automation, especially in call centers and consumer interactions. The emergence of embedded insurance presents a significant growth opportunity, where insurance is integrated into everyday activities, such as booking trips or purchasing automobiles. The speaker also discusses the impact of COVID-19, which has accelerated the need for digital solutions and highlighted the importance of digital transformation for insurance companies to remain competitive and efficient.
📞 Challenges and Opportunities in Insurance Call Centers
This paragraph addresses the significant challenges faced by insurance call centers, including increased call volumes and decreased staffing levels during the pandemic. The speaker highlights the need for digital transformation to streamline operations and improve customer satisfaction. The complexity of insurance products often necessitates human interaction, which contrasts with the consumer's expectation for a fully digital experience. The speaker points out that while insurance companies aim to be omni-channel and personalized, the reality is that 80% of calls still require human interaction. The pandemic has also led to an increase in insurance purchases and a greater need for digital communication, putting additional pressure on call centers to adapt and evolve.
🛡️ Amelia AI: A Case Study in Insurance Efficiency
The speaker presents a case study involving Amelia, an AI solution, which was integrated with DXC's conversational APIs and robust database to transform the customer experience and operational efficiency in an insurance company. The partnership resulted in a system that significantly reduced the need for human-handled calls, improved call quality, authentication, and routing accuracy. The case study demonstrates a substantial reduction in call center interactions, leading to cost savings, enhanced customer satisfaction, and increased efficiency. The speaker emphasizes the potential for this technology to revolutionize the insurance industry by serving both end consumers and brokers more effectively through digital means.
🏆 The Future of Insurance with Amelia AI
In the concluding paragraph, the speaker expresses enthusiasm for the partnership with Amelia AI and its contribution to DXC's service offerings. The integration of Amelia AI is seen as a significant enhancement to DXC's capabilities, making the company more efficient and better equipped to serve its platform users. The speaker thanks the audience for their time and acknowledges the potential of this technology to transform the insurance industry, improving operations and customer experiences across the board.
Mindmap
Keywords
💡Insurance Industry
💡Digital Transformation
💡DXC Technology
💡Improvement in Containment
💡IVR Authentication
💡Intelligent Digital Call Routing
💡Embedded Insurance
💡Call Center Automation
💡Amazon Generation
💡COVID-19 Impact
💡Omni-Channel
Highlights
Introduction of Ray August, a leader in the insurance industry with a 30-year background in transformation at PwC, Microsoft, and now DXC.
Ray August has achieved a 7x improvement in containment, a six-fold improvement in IVR authentication, and a 20x improvement in intelligent digital call routing at scale for 1900 customers globally.
DXC operates as an insurance company within its organization, managing 13 million policies and understanding daily insurance operations and challenges.
Digital transformation in insurance is about making companies more efficient and effective while growing their business through automation.
Insurance companies are focused on automating call center experiences and consumer interactions.
Embedded insurance presents a growth opportunity by integrating insurance into everyday activities like booking trips or buying automobiles.
The impact of COVID-19 accelerated digital adoption by at least a decade, increasing the demand for digital interactions in insurance.
Insurance products are complex, leading to high human interaction in call centers (80% of calls involve a human).
The challenge for insurance companies is to balance the complexity of products with the demand for digital experiences.
DXC's target is to reduce human-handled calls from 80% to 10%, significantly lowering costs and improving customer satisfaction.
Case study: A company saw a 20% increase in call volumes and an 18% reduction in staffing, leading to challenges in IVR authentication and call routing.
Partnership with Amelia: Implementing AI-driven solutions to improve call quality, IVR authentication, and call routing, achieving significant efficiency gains.
AI implementation led to a seven-fold improvement in conversation quality and a four-fold improvement in IVR authentication.
A 20x improvement in call routing accuracy reduced customer frustration and increased efficiency.
DXC's partnership with Amelia represents a triple crown in business process operation, enhancing customer satisfaction, reducing costs, and increasing efficiency.
Transcripts
it is my distinct privilege to
to introduce to you
a giant in the insurance industry who's
actually affecting
this transformation
the president
of
the insurance and business process
solutions
for dxe
ray august now there's a big difference
here not only his background you could
say 30 years of transformation
of having done that at pwc having done
that at microsoft now doing it for dxc
csc obviously the precursor but
i ask you you would say many giants we
have seen and all those other things
i'll ask you a mathematical question
how many of them are actually achieving
7x
improvement in containment
7x
700 that is improvement in containment
how many of them are achieving
a six-fold
improvement
in their ivr authentication
and how many of them are achieving a 20x
improvement 20x
in their intelligent digital call
routing
and doing it at scale for 1900
customers
of insurance globally
where 80 of g 500
insurance companies are being managed
by a giant
this
is the difference
to ray august
and every other futurist he's actually
doing it
please join me in welcoming ray to the
stage
thank you
that introduction will be hard to live
up to but i appreciate it very much you
know we're very excited to be here with
all of you today
talking about
insurance and talking about the digital
transformation of insurance and you know
dxc
we have about 2 000 companies who use
our software around the globe to
automate their business
but the the real interesting thing about
us is we're a bpo provider we are an
insurance company within our
organizations in fact we have 13 million
policies that we run on our systems on
behalf of our customers who are
insurance companies so every single day
we really understand what insurance
companies are doing we understand what
insurance companies think about and we
understand the challenges that insurance
companies have by automating their
operations on their behalf
and each and every day at dxc we have 20
000 professionals who come to work with
that mission and that is to automate
insurance companies so it really is an
opportunity for us to transform how
insurance companies think but also make
our own people more effective more
efficient as they serve insurance
companies and our combined solution
really does just that and i'm excited to
talk to you about it but to talk about
insurance companies you really need to
take a step back and understand what are
insurance companies worrying about what
do they think about each and every day
and if you think about insurance
insurance is pretty simple it's
people serving people it's people who
are looking to insure themselves
and they're being served by individuals
each and every day so it's entirely a
people business and it's a business
where people are the biggest part of the
cost equation
and if you look at what's on the mind of
insurance company
it's how do i get more efficient more
effective operations
how do i grow my business and how do i
really make my business get closer to
the customers
and the way they do that is through
digital transformation now digital
transformation is kind of a topic like
what does it really mean
in the insurance industry digital
transformation is taking all these
digital assets and using it to make
companies more efficient more effective
and grow their companies it's that
simple and the solutions that we have
together really put us at the forefront
to make that happen
and if you look at insurance companies
what are they focused on
they're really focused on automating the
experience in the call center automating
the consumer interaction now i have a
list up here of all the things insurance
companies are thinking about and if i
put this slide up
10 years ago
it would have been the exact same slide
but with the advent of covid with the
advent of how people think it's really
become an imperative on how to automate
what companies need to do to get more
efficient get more affected there's some
really interesting trends that are
underway in insurance industry i'm not
going to talk about all these but one of
the biggest is the notion of embedded
insurance
so think about when you go out and you
book a a trip online
there's an opportunity and you usually
get sold or the opportunity gets sold
trip insurance think about when you buy
an automobile now typically in that
process we try to you you try to get
sold automobile insurance so the process
of embedding insurance into every single
activity is really presenting a growth
opportunity for insurance companies and
we need to have that digital
transformation to make that happen
but so why are companies making the
investment in these interactions it's
pretty straightforward
now
if you look at this slide
you know in our operation you know
today people want to be entirely digital
they want to be entirely automated it's
the amazon generation where people
expect to be able to go online
buy a product serve a product return a
product and that's what people are
accustomed to
but insurance is a different game right
now the challenge with insurance is the
product is
very very complex whether somebody's
buying a life insurance policy whether
somebody's buying a homeowner's policy
it's not as simple as going to amazon
and clicking and buying a book or a can
of tuna fish it's a very complex product
so what's happening in the insurance
companies today is 80 percent of the
time there's a human interaction
involved with that call coming into the
call center 80 percent of the time now
think about the last time you called
amazon when's the last time if ever you
spoke to a human being
an insurance company eight out of ten
times you're dealing with with the
individual and of course insurance
companies aspire to be omni-chan i'll
have personalized orchestration but it
just doesn't happen because of the
complexity of the product it's not a
lack of desire by the insurance company
it's the complexity of the product
that's being bought and sold
and if you look at the typical insurance
company
they're spending a tremendous amount of
money in making this happen think about
the cost of answering calls 80 percent
of the time the call center cost and
this has been compounded by the trends
that we're seeing in the overall
industry now covet has had a dramatic
impact to all of us and the insurance
industry is no different obviously
there's things like the great
resignation
but one of the things that's happened in
insurance is as people began to think
about their own mortality
people went and bought more insurance
they wanted to make sure their insurance
is up to date they want to make sure
their beneficiaries were up to date so
covet has had a dramatic
impact on not only the workforce but
also the inflow the inflow of
conversations the inflow of of making
sure that my information is up to date
so i could provide for my family and if
you think about the millennial
generation a lot's been made about how
millennials are digital nomads and they
demand a digital experience
well in our industry one of the
challenges we're seeing is millennials
really don't understand the products
that they're buying
you know the the the the thing about
insurance is very infrequently does
somebody go out and buy a life insurance
policy very frequently does somebody go
out and buy a homeowner's policy
or per or an automobile policy or an
umbrella policy it's usually a once a
decade type of thing and so when you
have a very complex product and the user
is demanding digital but the product is
so complex it's actually putting a
greater emphasis on the telephone right
now because they're calling up because
they're confused they don't know how to
handle they don't know how to navigate
it's extraordinarily complex and the
third
trend that we're seeing is of course the
need for digital whether it be embedded
products
digital communications the industry is
seeing this dramatic need for these
digital vehicles and of course covet
hasn't done nothing but accelerate that
you know the way i the way i think about
it is covet accelerated electronic and
digital adoption by at least a decade
you know whether it be the older
generation who is unfamiliar with
computers where now they have to go in
and they had to understand it to do
grocery shopping to pay for things to
communicate with their family it really
accelerated digital adoption by at least
a decade and that really put a burden on
the insurance company of the
of today
now if you think about the impact this
had on call centers it's pretty is
pretty significant
if you look at the number of calls
coming in the number of calls increased
dramatically into these call centers at
the same time during covet the number of
people available decreased dramatically
so more calls with less people whether
it be the great resignation which had an
impact but also absenteeism was very
very very very high
the other issues the insurance industry
had
is that they had to take these
centralized call centers and move them
to distributed locations
everybody went to their home so when you
when you have a highly regulated
regulated industry like insurance
what happened was you had to push out
policies you had to push up practices
you had to push out new systems to
individuals and it was very very
difficult typically you know in a call
center you communicated one way so you
had to go digital and you had to go to
these to these different individuals
the consumer experience had to be fast
and nimble in these insurance companies
and
you know the the increased volumes of
people looking online looking for a
policy looking for more information it
was required that it was completely
digital and that was something that
wasn't happening in the insurance
industry in the past so we had a
phenomenal opportunity but of course
insurance is a business it's a business
for the insurance carriers it's a
business to the brokers that they serve
and it's a business for dxe to make sure
we're as efficient and effective as
possible so we're driving down looking
at how do we drive costs down how do we
drive down it drive down the number of
calls at the same time improving
customer satisfaction at the same time
in improving the interaction with
individuals and i'd like to point out
what's happening in the industry
if you look in the insurance industry
today you look at a typical call center
in industry
55 of the time somebody is calling and
looking for information 55 of the time
35 percent of the time they're looking
to execute some sort of transaction
and 10 percent of the time they're go
they're looking for resolution of an
issue so 80 of the time it's a
transaction that should be handled
digitally but it's not like i said
earlier 80 percent of the time today a
call is coming to the call center we see
this 35 percent of 55 percent as pure
opportunity for the industry an
opportunity to better serve their
customers an opportunity to reduce their
costs and an opportunity to to
cross-sell their solutions
so at dxe our targets are a little bit
different using this this fantastic tool
amelia we have an aspiration to go from
eighty percent calls coming in to only
ten percent calls that are that are
handled by a human so think about that
if you go from eighty percent down to
ten percent so the cost savings that
would incur the improved customer
satisfaction
the improved efficiencies and if you've
ever done anything with insurance you
know there's really two customers
there's the end consumer who's very
important but there's also the broker
dealer the broker or the agent really
drives the insurance industry they're
the ones communicating with the
individuals and it's extremely important
that these individuals have a great
experience with the insurance company
itself and they would prefer to go
digital but today is mostly voice so we
have a phenomenal opportunity in this
industry so let me give you a real life
real life case study
today we had a situation where we had a
company and the company saw about a 20
increase in volumes of calls coming into
their call center
at the same time they saw an 18 percent
absenteeism rate or reduction in
staffing
the other thing that was happening is
their ivr was not authenticating people
was too complex there were too many
different items and they weren't being
authenticated so what we did is
partnering with emilia we looked at the
amelia artificial
intelligence solution
we married that with our robust
conversational apis and our solutions
which interface with our robust database
and we brought a system to market we did
in about four months
and piloted with this company and you
heard the stats a seven time improvement
in the quality of the conversation
we saw the fact that we had a four times
improvement in the authentication of
this
the ivr it was fantastic and we saw 20
times improvement of the um
20 times improvement in the routing to
the right individual 20 times and proven
before every one of these calls would
have been routed to the wrong individual
it would have meant you had to pick up
the phone and talk to them but even more
importantly it meant the consumer was
frustrated the consumer was frustrated
with the interaction and i've been this
business a long time and it's safe to
say that it's very rare you see this
kind of payback with the ultimate
solution
that will have an opportunity to grow
customer satisfaction whether it be the
customer excels the end consumer whether
it be the agent itself you can reduce
costs for the insurance companies and
you can make us more efficient and more
effective so we i really look at it as a
triple crown in our business process
operation and we see it as an
opportunity where every single person in
the in the solution gives a more
efficient more effective operation so
we're real excited with our partnership
with amelia we think that it makes a
very robust and
strong part of our arsenal it makes us
very more much more efficient and allows
us to serve everybody in our in our
platform in a more efficient and
effective way so
thank you very much for your time today
[Applause]
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