Turning an opportunity into competitive advantage – IIS Report
Article Synopsis :
“Digitalization – Turning an opportunity into competitive advantage”, by Kevin Angelini from IIS, is an informal analysis of how insurers have grown in the past and how they’re evolving to meet the digital challenge today. Showcasing real examples of digital initiatives from insurance and tech companies primarily in Asia the author explores digital strategy in terms of context and opportunity, market trends and development, and evaluation of design strategies.
Specific use-cases include:
- Increasing sales by online fulfillment
- Feeding agent distribution networks
- Improving customer retention by offering better service
- Reducing claims experience by investing in wearable technology
- Enhancing pricing by combing internal and external data
- Investing in venture capital to gain access to technology and innovation
The report suggests carriers ask themselves five core questions in defining digital strategy:
- Define the Digital Vision: What is our aspiration?
- In what spaces will we play? Clear priorities and focus
- How will we win? Clear plan of action
- Distinctiveness: What differentiating capabilities do we need?
- Implementation: What support and information infrastructure do we need?
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Digital Insurer's CommentsIn addition to the five core steps recommended by Mr. Anglini we also recommend:
- External Partnerships – Doing everything in-house is neither technically nor financially viable. Insurers forging innovative partnerships with tech companies, individuals and institutions to create relevant digital solutions will lead the pack.
- Embrace a ‘fail fast’ culture – Innovation requires experimentation, i.e., an appetite for risk in the design and implementation of sometimes radical ideas. Most insurers are culturally risk averse. Failure in the name of innovation must be rewarded not punished.
- Baby steps to achieve transformation goals – The way insurers have developed over the years (e.g., legacy infrastructure, siloed systems) renders enterprise-scale digital transformation immensely challenging. Break the big picture into small pieces representing digitally ‘doable’ subsystems. Eventually the sum of the parts will equal the whole.
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