If you feel like you're listening to a broken record when itcomes to the calls for digitization and modernization in insurance,you're not alone.

It seems like every year around this time we hear how far the global insurance industry lagsbehind other industries.

To be fair, there is much progress still to be made. However,we've seen great strides over the past few years as insurersdevelop and implement advanced technology like robotic processautomation, telematics and more user-friendly digital apps. These advancesshouldn't simply be dismissed.

Productivity and profitablility

The next step will be tying it all together in a meaningful waythat both anticipates customer needs and enhances businessproductivity and profitability. Across the globe, business and ITexecutives have come to accept the correlation between committingto digital transformation and advancing business. A recent studyfrom The Economist Intelligence Unit (EIU) on behalf ofCSC showed as much.

The study surveyed more than 500 CEOs, senior IT professionalsand other C-level executives across global enterprises andindustries. A mere 8 percent qualified as "digital leaders" basedon their organization's level of digital integration. However, this8 percent was much more confident in the ability of their ITsystems to deliver strong financial performance than those laggingbehind. And, compared to other industries surveyed — suchas healthcare and banking — insurance executives wereamong the most committed to digitizing in the years ahead.

The question then becomes: Where can insurers make the biggestimpact?

Related: Focusing on the business ofinsurance

Today's consumer prefers using technology to gatherinformation and communicate. (Photo: iStock)

In the immediate term, there are a few key areas every insurercan shore up to better meet customer needs:

1. Tying together agile customer-focusedsolutions

One common pitfall IT and business executives make wheninvesting in technology is looking internally first. Customersdictate how they interact with their insurer or leave for another,not the other way around. With this in mind, every technologydecision should be made through the lens of the customerexperience. If not already developed, insurers should immediatelyevaluate their multi-channel approach.

Whether a customer prefers to engage through face-to-facemeetings, over the phone, online or through a mobile app, theexperience should be optimized for each channel. The key is havingthe same data available to support the experience regardless ofchannel.

Related: 5 tips for insurers to successfully implement newtechnology

(Photo: Shutterstock)

2. Integrating legacy IT systems

In the move to a truly digital environment, insurers mustgrapple with bringing together disparate (and sometimes outdated)IT systems across business functions. In simpler terms,organizations need to find a way to make different business systemsspeak to one another. For example, claims processing systems needto work seamlessly with finance and accounting, and tie intocustomer-facing capabilities like telematics systems and customerportals.

Related: 'Robot' processes with 'smart' software could helpinsurers

This is a real challenge almost all insurers will deal with,especially given continued consolidation and M&A activity wheredisparate systems are being patched together. To address thechallenge, enterprises will realize the power of applicationprogram interfaces (APIs) and working with an experienced serviceprovider. APIs are more than a development tool — theycreate new channels for service integration, informationcoordination, ecosystems of information sharing and economiesaround information derivatives.

The core of a digital strategy depends on democratizinginformation access, and APIs play a central role in that process.APIs often wrap around older systems and act as the key toinformation access and exchange between systems. This enablesorganizations to combine data from legacy applications and newapplications, a critical piece of integrating systems.

(Photo: Shutterstock)

3. Securing cloud-basedinfrastructure 

As insurers prepare for the digital future, they must ensure thebest foundation is in place, which may include an orchestratedhybrid cloud environment to accelerate the provisioning of theworkload. Incorporating cloud-based infrastructure should be one ofthe first steps of digital transformation. However, many insurersare reluctant to fully commit due to concerns about compliance andsecurity.

Related: Cloud deployment has reached a tipping point ininsurance

The global insurance industry has been at a digital crossroadsfor some time. We've spent the last few years in the midst of adigital revolution — developing new technology to betterserve existing and new customers, and deal with growing cyberthreats. Emerging from this period of innovation, the winners willclosely tie technology and IT development to business operationsand strategy, following a customer-focused approach.

Jim Reesing is vice president of global property &casualty sales at CSC.