Unified Communications and Collaboration (UCC) is fast becoming a game changer in the world of insurance and financial services. It’s estimated that due to the need for detailed analytics and visibility, enterprises will spend $2.8 billion on network monitoring by 2024.
In a brand new asset produced in collaboration with IDC Research, premier global provider of market intelligence, we’ve collected the latest information, market insights and trends on how UCC is transforming global banking, finance and insurance. The insurance industry in particular is relying more heavily on UCC systems and services, heralding the rise of new channels and modes of engagement.
WATCH: Associate VP, IDC Financial Insights, Michael Araneta, and IR's Chief Marketing and Product Officer, Kevin Ryder, discuss UCC trends in BFSI.
How UCC is influencing the insurance industry
UCC is bringing about digital transformation, streamlining operations, helping meet new regulatory guidelines and giving insurance institutions better end-to-end visibility, control, and business agility.
But it hasn’t been an easy path. The insurance industry in particular has been slow to adopt digital transition, due in part to lack of innovation and structural inefficiencies. But one of the biggest reasons for the lag in digital transformation is that insurers see legacy systems as an obstacle to moving forward. They see the costs involved with changing these systems as counterproductive. According to a study by Accenture, insurance organizations still rely on systems that are completely outdated, and things need to change.
The diversity of products, like home, auto, business, life insurance etc. and the customized nature of insurance makes digital transition a formidable option. So, what are some of the solutions for insurance firms? How can they become better equipped to instigate and embrace change through digital options, and to make UCC bring them into line with other digitized industries?
Elevating customer experience
The insurance industry is by nature, highly personalized. Each customer has different circumstances and needs, so customers demand high-quality, individual advice. A McKinsey study in the U.S. has found that companies with a better user experience generate higher customer loyalty and 30% higher profits than those companies who deem customer experience to be less important.
Developing multichannel communications
Customers expect to be able to find information online, using phones, tablets and laptops, and they want to be able to compare products through dedicated platforms. They want the option of talking to an advisor when they’re ready, so while the communication channel needs to be at least partly digital, it also needs to be varied and often instantaneous.
Automating more processes
Repetitive tasks like sending mail, managing internal activities, and processing certain data can be automated to cut down on costs and leave the human interaction for where it’s needed more.
Creating empowerment in financial services
Even with a somewhat slower transition towards digital transformation, insurance services are realizing that there are some key UCC components now crucial in delivering true business value to their industry:
- Real-time monitoring and automated alerts for proactive analysis
- Using a single tool for multiple UCC monitoring, comprehensive analysis and resolution
- Scalability to meet the requirements of businesses as to customer growth
- Insight into communication flows to resolve problems quickly
- Maintaining strategic control of the communications environment
Driving growth: The contact center
An effective contact center helps drive sales and growth. The steady increase in multi-channel, multi-device customer demand and the commoditization of insurance products has elevated contact center importance - delivering better customer service with less risk, lower costs, greater efficiency, and higher profitability.
“Creating experiences that deeply engage customers through natural interfaces and integrated processes and devices will differentiate leading organizations and businesses from the rest,” says Scott Reiter, Managing Director, Accenture User Experience
With the rapid shift to digital and in the absence of face-to-face interactions, it’s more important than ever that insurance providers are leveraging data and insights to optimize customer experience.
Third party performance management tools can help providers gain the visibility and insight they need to seamlessly leverage new technologies, enhance their contact center environment, and meet the evolving expectations of customers, employees and regulators.
Making UCC objectives a reality
UCC is now providing the foundational pillars of the future for the banking, insurance, and financial industry, and without comprehensive network monitoring and management solutions in place, UCC infrastructures would fail. The collection of data and analytics, real time monitoring, expanding intelligence - and leveraging emerging cloud technologies are at the forefront of up-and-coming digital technology.
For more insights and information, including an in-depth look at how UCC is changing the world of financial services, you can download this insightful booklet from IDC to find out more.