Changing Face of the Insurance Industry – Infosys Whitepaper
Article Synopsis :
The velocity of change in insurance markets is accelerating at an increasing rate. To keep pace, insurers must be more creative, efficient, and productive.
“Changing Face of the Insurance Industry” from Infosys provides a snapshot of emerging trends in the insurance space and highlights the specific nuances of their impact on the overall functioning of the industry. The white paper identifies seven global mega-trends that are already impacting the insurance industry requiring insurers to evolve rapidly. These mega-trends are:
- Sharing Economy – Insurers must be vigilant about technology and business models enabling people to share assets and resources, leveraging social media more effectively.
- Channel Revolution – Digital savvy customers demand more; insurers can no longer rely on a single-channel strategy.
- Self Service – Empowered customers want more control over how they transact with providers; insurers must build self-service capabilities, exceeding changing customer service expectations.
- Cognitive Computing – Cognitive computing has the potential to deliver cost-effective solutions that simplify and optimize insurance workflows while simultaneously maximizing efficiency. Considering these benefits, insurers cannot afford to ignore this mega trend.
- Platformification – Platforms enable insurers to support the entire insurance value chain, ultimately helping reduce cost and risk while simultaneously enhancing speed to market, customer experience, and service quality.
- Blockchain – More than just a distributed database for digital currencies, Blockchain’s ability to send, receive and store information has the potential to disrupt the way contracts and claims are handled industry-wide.
- Internet of Things (IoT) – Forward thinking insurers already offer usage-based insurance (UBI), utilizing IoT devices to track client activity and offering rewards for healthy and safe behavior. Based on the results, insurers keen to cut costs, improve efficiency and sharpen risk assessment, will increasingly turn to IoT technologies and business models.
The convergence of these technology driven mega-trends, combined with seemingly insatiable demand for anytime, anywhere access to information, will disrupt every part of the insurance value chain. Though this poses threats, it also presents numerous opportunities to innovate and compete ahead of the curve.
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Digital Insurer's CommentsIn every one of the seven mega-trends identified in this report, InsurTechs have formed, with a hyper focus on a specific – usually customer-facing – niche. Speaking of customers, their digital demands will surely increase rather than decrease with every passing day.
You could say legacy insurers have the advantage of customers, and InsurTechs have the advantage of intense digital-customer focus. They know how to engage customers and deliver superior customer experience embracing the latest tech tools and trends. Startup capital is plentiful, barriers to entry are falling, and non-insurance players are coming.
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