A reinvention of Insurance characterized by three main trends:
The digital age of information: Insurance customers now have more information available to them than ever before, which has led to higher expectations around value, service excellence, data protection, and personalization as well as lower levels of loyalty represented by an increase in customer churn rates.
The emergence of high tech competitors: Startups with innovative business models have infiltrated the insurance market, changing perceptions of what consumers have long considered an antiquated industry. Notably, these new entrants are unburdened by legacy technology, which has allowed them to change everything from the way underwriting happens to how claims get paid.
A shift to human-centric business models: Product-centric insurance models are quickly falling out of favor as firms introduce human-centric business models that deliver more positive and personalized customer experiences by helping agents get to know their customers and anticipate their needs.
To chart a path forward in this period of reinvention, insurers must shake up their business models. Increasingly, adopting a Lean style of working is helping firms do just that.
Keeping Up with the Reinvention of Insurance: Lean to the Rescue
Reinventing how you do business isn’t easy, but it is necessary. Fortunately, Lean management principles can help insurance firms adapt by providing the foundation of business agility that teams need in order to react to change quickly.
Specifically, Lean principles can help insurers keep up with the industry-wide reinvention by:
Adding value for customers: Lean calls for organizations to identify what customers value and make decisions to support those values. Lean accomplishes this goal by creating a continuous flow of information, eliminating complexity, and improving communication and visibility across teams so that employees can optimize value at every customer interaction point.
Eliminating waste: No room for waste exists in a Lean organization, and that means organizations must avoid any process, activity, or function that doesn’t serve or add value to customers’ needs. As such, Lean organizations must eliminate any inefficient processes, duplicate efforts, excessive planning, and outdated technology, which can make all the difference when trying to compete with new digital players.
Delivering incremental, continuous improvement: To keep up with new digital players, firms must also evolve how they do business. Once again, Lean principles can help, this time by calling on organizations to create an environment of continuous improvement and learning. In a Lean organization, employees should approach every customer interaction as a learning opportunity and share the outcomes with the rest of the organization to help improve services and products.
Putting people first: Finally, making the change to a digital, human-centric organization needs to start from within, and that’s where the Lean principle of respect for people comes into play. This principle stems from the idea that employees will do their best work if they are empowered by a healthy, respectful system. For instance, when operating within a culture of learning, employees should feel empowered to make informed decisions that focus on adding value for customers.
The Power of LeanKit for Insurance
LeanKit is a visual work management tool that was developed based on Lean principles to help businesses maintain a competitive edge and deliver innovative products and customer experiences faster.
Narrowing in on insurance, LeanKit provides the modern technology that firms need to put Lean principles into action. Through Kanban-style boards, LeanKit provides a centralized location to manage all activities and maintain visibility into real-time information and status updates. This process visualization helps increase efficiency, eliminate waste, and maintain high levels of collaboration and transparency.
Ultimately, by providing clarity into workflows, handoffs, and bottlenecks, LeanKit helps insurers stick to deadlines and make process changes that keep teams in sync, deliver optimum value faster, and save time and money. Best of all, LeanKit is flexible, intuitive, and easy to use, making it an ideal solution for every department from IT to Operations to Underwriting.