Article Synopsis :
The time is ripe for insurers to shift focus from the past and re-envisage their future. The whole world is embracing digital technology and insurers need to adapt to the new paradigm for a sustainable competitive edge.
In the report titled “The Day of Digital Reckoning “ BAIN & Company discuss step-by-step journey to become the digital insurance enterprise. According to the report, seizing the digital opportunity will require a deft touch and a concerted, ongoing effort in four strategic areas given below:
1. Embracing an “Omni channel” approach
2. Redesigning core operations and underwriting
3. Upgrading the IT platform and organization
4. Fortifying the franchise.
The report also showcases successful tools and technologies like E-trade, bar code scanning app, in vehicle telematics devices etc., that are helping insurers to strengthen the digital business model.
Bain recommends insurers commence their digital transformation with an initial assessment answering questions such as
• Where is the current business model under greatest pressure?
• Which digital trends are most urgent for protection, which for seizing opportunities and which can bear watching?
• What is the scale of the implied effort?
• Which areas do target customers most value, and therefore deserve investment?
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Digital Insurer's CommentsThe Bain report crisply identifies the critical importance of building solutions for the “Omni channel” or hybrid customers who want to use the channel of their own choice and convenience and expect their insurers to have a consolidated view of their entire relationship.
They also implicitly acknowledge that the scale of the challenge for incumbents is such that new ways of delivering technology are required incorporating iterative approaches for delivery of functionality.
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