The Future of Insurance – Global Future & Foresight,Accord,Equinix
Article Synopsis :
Digital access to a wide range of products and services has put a big question mark on the native business model of the insurance sector and customers are getting more aware, more demanding and less loyal.
In the white paper “The Future of Insurance”, the Global Future & Foresight, Accord and Equinix teams examine how the world and the insurance sector are changing dramatically and highlights the drivers, opportunities and challenges of an incredibly rich and evolving sector. As per the white paper, a range of possible responses exists for insurers to address the challenges of digital transformation such as:
- First to the Future – Insurers that are aiming to be first to the future will seek growth through a range of innovative products and services
- Early adopters – Although not necessarily the first to implement new processes or methods, these carriers’ strengths lie in adaptive market intelligence and a horizon-scanning capability that allows them to sense opportunities and assess others’ efforts before the mainstream does
- Supertankers – Carriers who do not have the flexibility or culture to successfully adapt to change – they are often the last to implement new tools and business processes
- Hybrids – Carriers develop specific skills sets that they market internally within the industry and develop mutually beneficial partnerships with other players
The white paper also highlights that tomorrow’s successful insurer will be built on comparative advantages in any one area, or a combination of different areas such as:
- Internal data management – The use of standardised data models to act on the very latest emerging trends and insights
- Inherent agility – The need for continuous innovation to meet the needs of tomorrow’s consumer
- Innovate risk transfer/sharing – The need for new models to help counter potentially more costly and frequent natural disasters
- Target success – Carriers need to make deliberate and clearly thought through choices on how they will pursue growth and where they expect it to originate and then tailor the business model and internal technological and cultural ecosystem to help pursue their chosen strategy
- Standards become critical platforms and enablers – There is a need for standards at data, process and infrastructure levels to help ensure that insurers can interconnect with rapidly increasing external information sources, new markets and players, with and across new technologies
- New delivery routes – Achieving the correct balance of outsourced and centralized operations will prove critical for insurers to meet the triple bottom line of regulatory compliance, analytical capability and superior customer offerings.
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Digital Insurer's CommentsThe insurance industry is challenged by a digital future and the new normal is getting standardised by ubiquitous connected devices, the internet of things, telematics and wearable technologies. Although the impact of some of these emerging digital trends have not yet been fully understood, the undertone is clear that the insurance sector cannot be immune to this disruption. Insurers must embrace innovation and develop digital strategies that align with their business objectives and addresses the disruption risk. The insurance industry is on the brink of significant change as new opportunities and challenges are fuelling the need for a complete digital overhaul. As insurers move into the future, a digital vision aiming to create a more connected, agile and analytics driven enterprise with a robust IT infrastructure that quickly and effectively responds to omni-channel customer needs will be critical for creating a new paradigm of competitive edge.
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