The insurance industry has long faced challenges because of outdated operational frameworks and technological limitations. Insurance carriers have adhered to rigid structures that dictate product offerings, distribution channels, and risk assessment methodologies for decades. Although these practices provide stability, they have also hindered innovation within the industry.
One of the pain points in the insurance sector revolves around data management and analysis. Traditional insurers struggle to utilize vast amounts of data to predict risks accurately. Legacy systems and manual processes make it challenging to process, analyze, and use large amounts of data. This leads to delays in decision-making and substandard risk assessment. Because of this, insurers may miss opportunities to serve markets and optimize their underwriting processes.
Manual tasks such as claims processing, underwriting, and policy administration are labor-intensive and prone to errors. They are often the cause of delays and increased administrative overhead. The lack of coherence between various systems and processes further exacerbates these challenges, making it difficult for insurers to streamline operations and deliver outstanding customer experiences.
The advancements in digital technologies, especially in artificial intelligence (AI), automation, and data analytics, present opportunities for the insurance industry. Unfortunately, many insurers find leveraging these technologies challenging. There are also concerns about data security and privacy to consider. Adding to these factors are changing consumer expectations and preferences.
Insurers that fail to adapt to these shifting dynamics risk losing market share to more agile competitors and insurtech startups that are quick to embrace innovation. Insurers must modernize their operations and embrace technology-driven solutions to remain competitive in an increasingly digital marketplace, and Proxima is leading this movement.
Proxima, a member of Resolute Global Partners, an SEC registered insurance investment fund, and MLTPLY, a leading insurtech VC, aims to reshape the insurance sector by embedding cutting-edge technology (such as AI and automation) in operations to provide efficiency and exceptional customer service. Recognizing the gaps in the industry, Camilo Cruz, the company's co-founder and CEO, emphasizes the need for modernization behind the digital front-end.
Cruz's experience building a full-stack digital insurer in the Dominican Republic illustrates the limitations of existing insurance frameworks. "There are advancements in areas such as distribution and claims processing. However, the broader industry still relies on outdated operational models that offer limited flexibility," he stated.
One of the primary drivers of Proxima's approach is the recognition that digitizing the traditional sales process is not enough to address industry challenges. For instance, the beginnings of insurtech, which is characterized by direct-to-consumer digital platforms, revealed that simply replacing agents with self-service apps and websites only led to higher customer acquisition costs. Proxima advocates for a different approach to modernization, championing the integration of technology into the backbone of existing insurance workflows, such as underwriting, claims processing, agent onboarding, and more.
With this, Proxima addresses the persisting issues within the insurance industry by focusing on the often-overlooked aspects of insurance processes. The CEO expounded, "Operational inefficiencies that manifest in these areas have significant implications for customers. For example, in the United States, we are looking at the property insurance sector struggling to price risks appropriately, and sometimes not even offering home insurance at all.”
Proxima solves these challenges by assuming control of specific departments or areas within insurance companies, effectively streamlining operations from within. It deploys dedicated teams that take over tasks such as first notice of loss handling, underwriting, billing, compliance, and business development. Each member of the team is bilingual and possesses specialized expertise, ensuring that insurance operations run smoothly.
Once the carrier has seen its operations improve, Proxima tests and embeds its technology into the workflow. Its proprietary software, like CallPilot and ProJourney, leverages AI-powered solutions to automate call center support. CallPilot, in particular, boasts features such as Pro Wiki, Pro Call, and Pro Automate. This tool revolutionizes inquiry handling and outbound communication, from providing immediate, up-to-date information in real-time and reducing queue time to automating end-to-end digital processes. On the other hand, Pro Journey generates digital experiences for agent onboarding, contact information updates, and many other use cases without requiring changes in legacy core systems.
Additionally, the company offers nearshore staffing services, providing access to top-tier talent within various areas of expertise (e.g., information technology, software development, quality analysis, and customer service). These services enable insurance carriers to tap into global talent pools cost-effectively, all while ensuring excellence and efficiency in representing their brands.
Proxima's unique combination of expertise and innovative approach paves the way for a more efficient, customer-centric insurance landscape. This edge positions the company as an invaluable partner for insurance companies striving for success in the digital age. Proxima's integrated approach to technology and operations modernizes insurance practices and drives tangible benefits in terms of efficiency, cost savings, and customer satisfaction.
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