Sep 10 , 2021
By Asseged G. Medhin ( Asseged G.Medhin, deputy CEO of Global Insurance Company. )
Integrating technology solutions and implementing process improvements that leverage the capabilities of existing personnel and applications should become the norm in the insurance sector, writes Asseged GebreMedhin, insurance professional.
More than most kinds of business, firms in the insurance industry must always find a way to break traditions, legacy systems that perpetuate a limited view of the customer and books of business. They should map out their risks and mitigate them proactively before they materialise.
The solution for every risk they face is their management capability – 19th century risk management systems cannot manage 21st century risks. Both the perception of risk and the attitude of existing and potential customers is changing globally. This challenges insurance companies still following traditional, antiquated business rules, policies, and regulations.
What is the way out from this infant and acrimonious traditional business? Can we name any bank or insurance that is international in its way of doing business? If not, why insert “international” in the brand name of firms? Are we thinking globally but doing locally? There is a strong need to change, but change what?
New models of business and enterprise architecture need to arise. Integrating technology solutions and implementing process improvements that leverage the capabilities of existing personnel and applications should become the norm.
Mere automation is not change, it is the knowhow and the knowledge-based service provision that needs to be updated into the 21st century. There is a need, for instance, for core process improvements, especially in relation to support services. Overlaps must be avoided, work flows simplified and seamless processes integrated to gain a competitive advantage.
Automation is an essential part of this. It has to be properly placed to get the right information from disparate data sources for optimum decision making and ease the inefficient business process. How a 21st-century insurance business should be run is a change in its totality plus automation.
Insurance firms in Ethiopia are introducing automation, but they are doing it using a rigid management philosophy, on an anti-change cemented attitude. Some pay for automation to be built merely to help market the company, while others hate to see the good old days come to an end. But thanks to ongoing global change, companies insisting on tradition have a low fighting chance against the storm of technology and constantly evolving managing techniques.
Companies should be prepared to focus on retaining customers, attracting new ones through various channels, delivering new products, and providing high-quality customer service. Insurance company executives who dare to change their company to streamline the process and deliver improved performance to support profitable growth strategies must work on key strategies.
They can start by changing their core business process to enhance operational efficiency and control expenses across their services value chain. They should also integrate automation across departments where it should be in place, with a central system of operation – this has the advantage of both decentralisation but effective control over running the day-to-day.
No less critical is to change the overall mindset of employees and management until the change reaches customers. Updating the institutions should likewise include introducing business ethics and accountability as well as protect against inefficient employees and inherent gaps of the change itself.
When management systems are updated, the role of the traditionalists is minimised, a typical insurance company’s claim process cycle is shortened, claims leakage will significantly be managed and fundamental market growth through words of mouth can be achieved. It is also possible to optimise customer service, cut costs and staff overload, expand report capabilities to proactively manage works and directives, enhance compliance monitoring and management, lower customer request response time.
If they want to navigate an evolving business environment and fulfill their organisational objectives, insurance companies should take off their traditional casing and put on change as their coat of arms.
PUBLISHED ON Sep 10,2021 [ VOL 22 , NO 1115]
Radar | Jun 11,2022
Commentaries | Jul 03,2021
Fortune News | Sep 10,2021
Sponsored Contents | Mar 21,2022
Exclusive Interviews | Jan 05,2020
Radar | Jun 04,2022
Viewpoints | Jun 26,2021
Fineline | Feb 23,2019
Fortune News | Dec 26,2020
Fortune News | Jan 11,2020
Photo Gallery | 60778 Views | May 06,2019
Photo Gallery | 52719 Views | Apr 26,2019
Fortune News | 49993 Views | Jul 18,2020
Fortune News | 49222 Views | Sep 01,2021
Commentaries | Dec 04,2022
Life Matters | Dec 04,2022
My Opinion | Dec 04,2022
Sunday with Eden | Dec 04,2022
Agenda | Dec 04,2022
Editorial | Dec 04,2022
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Oct 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Dec 4 , 2022
Last week saw enraged university lecturers' threatening to stage a strike. They addre...
Nov 26 , 2022
In the wake of the liberalization of the telecom sector, Ethiopian authorities have m...
Nov 19 , 2022
The rounds of talks to end wars in Ethiopia held in Pretoria, South Africa, and Nairo...
Nov 12 , 2022
Two weeks have passed since negotiators from Ethiopia's federal government and the TP...
What are the odds of seeing a housemaid who loves the job dearly and wakes up every morning to do the chores with excitement? Well, this...
Dec 3 , 2022
The nostalgia for the combustible engine, with the noise and smell of burned fossil f...
Dec 4 , 2022 . By MUNIR SHEMSU
A self-proclaimed industrial park alias "Hawassa Textile & Industrial Park" canno...
Awash Bank shareholders voted to boost the paid-up capital to 55 billion Br in the ne...
Dec 4 , 2022 . By RAHEL BOGALE
The expansion project under the country's largest referral hospital runs aground due...
Or see contact page