Article Synopsis :
Switzerland’s non-life insurance industry is being impacted by a range of new regulatory initiatives as well as changes in technology and customer behavior. Traditional business and operating models are under threat.
KPMG’s latest publication, “Clarity on Non-Life Insurance – Evolution or revolution for Swiss insurers?” addresses the more fundamental shifts and presents discussion and analysis of what they mean to the industry. The report is organized in three parts:
- CEO insights: Senior insurance executives share their views on the future of the industry
- Industry transformation: Digitalization, regulation and customer needs cause transformation to gather pace. What can be done in response?
- Drivers of change: What impacts will Swiss tax reform, ORSA and international oversight have?
Carriers, the report tells us, are responding with new business models, omni-channel operations and up-to-date infrastructures capable of supporting digital transformation. Changing regulatory landscapes are driving new organizational strategies and business-related decision making processes.
The market faces digital disruption from non-traditional competitors, such as fintechs and start-ups who are always innovating around better customer experiences. Insurers should re-imagine their existing value-chain in the context of digital, asking: Where can digital benefit us? Three suggested areas are:
- Back-end: Power existing systems with IoT using analytics to derive insights.
- Operations: Automate, deploy algorithms etc. to reduce costs.
- Front-end: Deploy more consumer touch-points to drive business.
With respect to implementation KPMG recommends the following framework for digital transformation designed to help organizations “Start small, think big and move fast”:
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