Consolidations, mergers, and acquisitions—the world of mutual health and life insurance companies has seen major upheavals in recent years. The result is striking: these changes are bringing together very different players to collaborate, even though they are not always well prepared for it. Here are three examples where digitizing processes to support this transformation can yield positive results.
Like many other sectors, the mutual insurance sector is undergoing a major transformation. There are several reasons for this.
- The first factor is undoubtedly the widespread adoption of supplemental health insurance in 2018, driven by the ANI (National Interprofessional Agreement) reform.
- The second stems from the implementation of the European Solvency II Directive, which, in addition to prudential rules, requires the establishment of new operational rules regarding financial reporting.
Both trends have played a major role in accelerating the consolidation of players in the mutual insurance sector, who are seeking to strengthen their capital, streamline their costs, and thereby enhance their competitiveness. At the same time, mutual insurance companies are diversifying their operations, notably by partnering with brokerage firms to tap into new market segments.
In this context, it is easier to understand why mergers, acquisitions, buyouts, and alliances are on the rise in this sector. Regardless of the collaboration model chosen (integrated, partnership-based, commission-based, etc.), an increasing number of players in the mutual insurance sector are finding themselves compelled to collaborate. Yet they often have different legal statuses, are subject to varying regulations, and have histories, cultures, and work processes that are frequently quite specific…
A digital transformation that is already underway
In the interest of customer satisfaction, the mutual insurance sector—like the insurance industry as a whole—has quickly moved to digitize its customer relations (and the processes involved).
Today, a large portion of the underwriting and customer file processing workflows are digitized using CRM tools. However, these tools address only the tip of the iceberg when it comes to our needs. Process digitization still has a bright future ahead of it once it moves beyond the realm of customer relations and interconnects with other areas of expertise: insurance experts, insurance brokers, legal or financial services…
Overseeing compliance management
Since the introduction of Solvency II, insurance companies and mutual insurance organizations have been required to report to the authorities. They are required to regularly submit financial statements to the European regulator to demonstrate their solvency. This highly technical financial reporting process can also be significantly improved through the digitization of processes.
A platform like DAMAaaS effectively DAMAaaS the entire value chain: aAutomation of data flows, versioning and traceability, adherence to deadlines, and automated follow-ups… It contributes to the quality of the data provided and is an integral part of these Regtech that have become indispensable for compliance management.
Streamline sales processes
In addition to insurance products, brokers also sell health insurance and personal protection plans. They operate as independent professionals and, as such, work completely independently of the companies whose products they sell.
For a mutual insurance company, the question arises of how to monitor—if not manage—this relationship. How can we foster relationships with brokers and track sales? A platform like DAMAaaS perfectly into this framework. It allows us to track the underwriting of distributed products, report information collected by distributors regarding the products, and calibrate and monitor all interactions to be implemented with the distributor throughout the contract lifecycle (signing, renewal, compliance checks)…
Standardize certification processes
While the digitization of processes has much to offer in terms of streamlining network management, it can also help improve internal processes. An increasing number of mutual insurance companies are pursuing quality certifications (ISO 9001), which are costly in terms of time and human resources. The Digitization of processes is an integral part of formalizing procedures, ensuring traceability, and archiving the actions, comments, and annotations required by the ISO 9001:2015 standard. This is obviously an additional safeguard for securing long-term certification renewal.
At DAMAaaS, we are convinced of the benefits of process digitization in the mutual insurance sector and, more broadly, among network-based companies. It effectively and seamlessly fosters a collaborative dynamic among stakeholders who have had little or no preparation for working together. Now more than ever, this is a key challenge in the times we are living in.
Digitalization of the banking, insurance, and mutual insurance sector: room for improvement
The findings are clear: 44% of professionals in banking, insurance, and mutual insurance companies believe that their organization has not yet reached a sufficient level of digital maturity sufficient, particularly given the complexity of the challenges facing their sector.
The challenges encountered relate to security and regulatory issues, internal processes and work methods, as well as employee training and the tools needed to adopt new digital practices. A trend to watch!
