Digital Transformation in the Insurance Industry

Summary

Ray 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.