The insurance industry is on the brink of a greater change today than ever before. Unlike its peripheral role in the past, technology today is transforming every aspect of the insurance business, changing not only the external market dynamics but also the internal revenue and operating models. And unlike before, the industry is being rapidly inundated by a range of new technologies and innovations, making it imperative for insurers to design a balanced strategy that ensures returns from their investments in innovation without a loss of focus.
Our 2017 World Insurance Report (WIR) draws upon Capgemini’s Voice of the Customer survey to track changing consumer preferences when it comes to their insurance transactions. We found that digital is becoming integral to the insurance customer experience, especially within the highly-prized segments of Generation Y1 and the tech-savvy. In fact, digital or digitally-enabled features are increasingly defining the top customer Moments of Truth, which are those instances when customers form or change an impression about their insurer due to an interaction. Nimble InsurTech firms2 are able to innovatively meet these preferences and are gaining traction among customers. However, incumbent insurers carry their own strengths of trust, brand and security in the eyes of the customer. Thus, incumbent and InsurTech firms are increasingly discovering that collaborating together offers a win-win path forward.
InsurTech capabilities will play a crucial role for success in this new reality and a majority of insurers believe it will help them better serve customers and meet their evolving demands. Emerging technologies, such as artificial intelligence (AI) and connected devices, are acting as pillars for the development of InsurTech capabilities and are driving myriad innovations in digitization, data and analytics, and insurance-as-a-utility. Faced with this plethora of innovation opportunities, it becomes important for insurers to not only invest in innovation but invest correctly. In our spotlight, Navigating the Innovation Conundrum, we provide a framework to help insurers analyze and prioritize their investments in line with their own strategic priorities as they begin to embrace the InsurTech revolution.
The continued reliance of consumers on digital technologies that support mobile apps, social networking, on-demand services and the like makes it clear that the mass market has entered a new phase. Any industry seeking to serve the masses must now adapt to new terms of engagement. Keeping all these factors in mind, our 2017 World Insurance Report aims to make it easier for insurance companies to develop a comprehensive InsurTech strategy. We hope you find it useful.
Keywords : Insurance Products & Services , Fintech , Innovation , Digital/Mobile channels , Insurance Products & Services , Blockchain , Internet of things