World Insurance Report 2014 from Capgemini and Efma

Article Synopsis :

The digitisation megatrend is shaping the 21^st century and is having a significant impact on every part of insurers’ business models.  An important question before insurers today is – what capabilities and strategies do they need to build in order to lead in the digital world?

Digital transformation requires change across the entire organisation 

In chapter 3 of “World Insurance Report 2014”, Capgemini and Efma attempt to answer this question by leveraging data and trends from insurance companies around the globe. They believe that embracing digital and strategic investments in key operational areas will play a crucial role in driving higher profitability and insurers that fail to initiate a top-to-bottom transformation of their digital capabilities risk falling behind their proactive competitors. Key points discussed in the report are:

• Internet emerges as more important than most traditional channels
• Evolving customer demands are expected to spur an increase in insurance business occurring via digital channels
• Insurers seek to broaden mobile functionality in response to channel’s burgeoning appeal
• Digital capabilities have room for improvement, globally
• Customers rank research, claims servicing as most important digital capabilities
• Leading practitioners use digital prowess to enhance the customer experience
• Digital intensity combined with operational excellence is key to the way forward
• Investments in channel integration, touch points, and predictive analytics will drive bottom-line growth

Interestingly, the report, which is based on data from insurance companies from 14 countries around the globe, also uncovered the following trends:

• North American insurers exhibit the highest levels of online maturity, followed by those in Asia-Pacific and then Europe
• Non-life insurers are more digitally advanced than their life counterparts
• Insurers globally are most adept at providing a rich digital experience when customers are researching policies and getting quotes
• Digital capabilities lag globally in the area of online claims servicing

The report concludes that “insurers have realised the importance of going digital, yet many are still in the nascent stage, testing the waters and offering basic digital facilities”

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