Insurance companies untapped digital opportunity
Article Synopsis :
Technology is changing at a rapid pace – each wave of innovation presents new opportunities and challenges for insurers to compete in the marketplace. Customers’ expectations are changing, influenced by their enhanced experience with service providers in other industries such as banks and retailers. As customer behaviour and expectations progress, they are challenging the ability of insurers to adapt to meet such expectations.
In the article titled “Insurance company’s untapped digital opportunity” authors, Tanguy Catlin, Pradip Patiath and Ido Segev discuss what digital excellence in insurance looks like. According to the survey conducted by the authors, top digital performers consistently do the following things well:
- They have a digital strategy that’s well defined along the lines of marketing, sales and service and are well-informed by customer insights. In fact, digital leaders know their customers so well that 50% of their interactions with them are personalised.
- They have placed bets on specific digital capabilities for the future (such as mobile) and have invested to rapidly build those capabilities.
- Their operating model and governance are suited to the organisation’s digital maturity, size and capability levels. As the organisation’s digital maturity increases, many digital functions become decentralised and are integrated into broader business unit activities.
- They have good talent: 80% of their digital talent has digital experience (e.g. from leading academic institutions and digital organisations), and over 60% have a rigorous digital training program in place.
- They are committed to a test-and-learn culture: top digital performers reward risk-taking as part of the learning process. They have robust analytics in place, with 85% of their digital spend measurable in terms of return on investment.
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Digital Insurer's CommentsWhile most insurers agree on the importance of adopting digital technology, they do not know how to navigate the path of digital transformation. Insurers must adapt to digital transformation through technology or risk falling short of their market competition.Insurers who manage digital technology effectively can expect to see improvements in customer experiences, customer engagement and business operations
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