The winning insurer is a digital one – TIA Report
Article Synopsis :
Today’s business landscape is being heavily influenced by technology megatrends, and insurers who seek to remain relevant must respond by building digital capabilities that adequately address the needs and preferences of digital customers.
In the report “The winning insurer is a digital one”, the TIA team argue that emerging digital technologies and empowered customers are the two key elements that have merged to create a mighty wave of change for insurers. The TIA report also presents innovative ideas, insights and examples that could help insurers propel their business in the digital direction. As per the report, to be a winner carriers must understand and answers to each of the following questions:
- What does it mean to be a digital insurer?
- Why is it important to be a digital insurer?
- Where do I get started with my digital transformation?
In answer to the first question, what does it take to be a digital insurer, the TIA team nicely summarise it in the table below:
In answer to the second question, why is it important to be a digital insurer, the report cites some interesting statistics from various sources which present a compelling case for digital reinvention:
- Insurers with advanced digital strategies are on average 63% more profitable than those who don’t have them
- 79% of surveyed insures responded they didn’t see themselves digital leaders and that they were still learning how to use digital capabilities for a competitive advantage
- Close to 70% of insurance customers remains a flight risk – close to changing companies
- Only 32% of customers globally cite positive experiences with their insurer
- Customers with positive experiences are nearly 2X more likely to refer friends to their insurer
- 78% of customers trust peer recommendations
In addition, the team present a great summary of what customers want and examples of what insurers can provide in response to these customer needs:
Finally, in response to the final question, where do I get started with my digital transformation, the report states that insurers should start by looking within and by asking the following three questions:
- Do you have an up-to-date business case for digital?
- Do you have the right operating model in place?
- Do you have a clear implementation plan for your digital strategy?
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Digital Insurer's CommentsThe strengths brought about by digital technology are clearly evident as insurers can analyse customer behaviour and gauge the effectiveness of customer-driven initiatives in real time. This flexibility and sense of empowerment is hard to fathom in the traditional brick and mortar set up. We believe that digitisation is all about outlining a vision, setting goals, and building capabilities that lead to insight driven product development, omni-channel delivery, and seamless integration of marketing, sales and services initiatives with the customer always firmly at the centre. The outcome is to create an unmatchable customer experience which is a critical differentiator in the emerging digital landscape. We believe that insurers who fail to prioritise digital in 2015 run the risk of falling behind in the battle of sustainability and growth. In order to beat competitors and position themselves for success, insurers must carve out a roadmap that addresses four key digitisation challenges:
- Customer’s evolving needs and preferences
- Insight driven product development
- Digital enabled internal process and IT infrastructure
- Analytics driven risk management
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