Article Synopsis :
Belgium has a mature insurance market and as a result, organic growth will be limited in core products.
Insurers are aware that digitalisation will have a profound effect, yet, the speed and level of change is not yet clear to them.
They continue to focus on customer segments, risk appetite, product & services, but must also focus on two additional strategic dimensions that will shape their future.
Those dimensions are: the position on the value chain with connectivity and openness to other sectors; and the ability to offer a seamless and frictionless customer experience.
This Deloitte paper suggests the market of 2025 will be dominated by three types of player.
The first is the ‘core insurer’. These focus on core insurance products and skills to deliver a perfect customer experience
The next is the ‘beyond insurer’, covering the companies that offer additional services that provide added-value for their customers.
Finally comes the ‘exponential insurer’. These businesses will leverage external partnerships in order to achieve growth in new markets and gain access to successful ecosystems.
These developments require insurers to up their game in the following areas:
- placing customers at the centre of their processes;
- developing technology and open architecture;
- data analytics;
- innovation, whether on their own or through partnerships;
- finding the right talent for this brave new world; and
- managing partnerships & ecosystems.
The open banking ecosystem will force banks to determine where they want to take their businesses in the future. It also presents insurers with many opportunities.
The paper also highlights mobility, health and smart home as three ecosystems that offer growth for Belgian insurers.
Mobility – technology, traffic congestion and a sharing economy is leading to Belgians to consider “multi-modal mobility solutions”, ie new modes of travel beyond the binary choice between public transport and car ownership, such as mobility as a service (MaaS). Yet, as yet, there are few multimodal insurance solutions available to consumers.
Healthcare – it is anticipated that healthcare spending will grow, but while the internet of things (IoT) is also growing, insurers must secure consent from consumers to gain access to that data.
Smart home – integration of IoT with the places we live and work is changing the way we interact with the physical urban landscape. This will continue and presents opportunities for insurers to tailor products for this burgeoning market.
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Digital Insurer's CommentsOften we look at regional or even global momentum, within these papers. However, this particular paper offers some useful insight into the Belgian market.
This mature market faces the same challenges as other mature European markets, but this paper identifies three ecosystems that offer significant opportunity.
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