Demands by Customers are Driving the P&C Agenda – KPMG
Article Synopsis :
2016 may be a tipping point, the year insurance executives realize consumers aren’t ‘asking’ for digital but ‘demanding’ it.
In “Demands by Customers Are Driving the Property and Casualty Agenda”, KPMG discusses the business realities of the emerging digital landscape and provides insights around transformational activities in response to changing client expectations, shifting markets, and next-gen IT infrastructures.
Per the report, though the insurance industry seems to be in the throes of change, the pace of transformation is surprisingly slow. Only 22% of surveyed insurers have started transformational projects, and less than one in three have completed at least one project. Which leaves half of the surveyed population in the ‘doing nothing’ or ‘assessing’ stages. These numbers are as surprising as they are confounding.
What triggers transformation initiatives? Per KPMG, the top three triggers for transformation across all industries (including insurance) are:
- 33% Meeting customer demand (changes in customer focus, buying patterns/preferences)
- 30% Coping with changes in technology
- 29% Responding to domestic competitors
Forward-thinking corporate leaders recognize customer segmentation and focused outreach–tied to an overall growth strategy incorporating a heavy reliance on technology–is the new modus operandi for the successful digital insurer. Hailing customer-centricity as the new king maker, the paper explores the following key attributes of a customer-centric insurance organisation:
- Customer Insight: Identifying and understanding customer needs
- Customer Strategy & Proposition: Translating identified needs into transparent products and experiences
- Service Excellence: Operationalising and delivering top-notch customer experience
- Channel Optimisation: Matching customers to the right channels
The report goes in-depth, with well-articulated points-of-view for the CxO, on the following hot-button topics:
- Big Data, Analytics, and Predictive Modeling
- Driverless Cars
- Cyber Security
- Managing Regulatory Demands
- Venture Capital
- Climate Risk
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Digital Insurer's CommentsCustomers increasingly drive the insurance agenda. There’s no question in our mind that secure, sustainable competitive advantage is found in the new digital technologies engineered to reach customers and enhance their experience.
‘The biggest impediment to a company’s future success is it’s past success,’ says Dan Schulman, CEO of PayPal. This can be true of industries as well. ‘Big Insurance’ has grown mightily by moving deliberately, with cultures known for internal turf wars, and compensation systems geared to building silos rather than open, collaborative environments capable of accepting and accelerating change.
The market is moving. Insurers must pick up the pace of digital transformation. Those who don’t risk disintermediation and, ultimately, irrelevance.
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