We’ve all been there; realizing the answers are obvious when you have the benefit of hindsight. But hindsight is not the only “wonderful thing;” in a world of digital disruption, foresight is equally priceless. What if insurers could go beyond offering cover to helping customers manage risks and prevent accidents that would lead to a claim in the first place?
It is an insurance future that needs a comprehensive understanding of the digital landscape. Although our Accenture Technology Vision 2015 notes that 35 percent of insurers are investing in digital technologies as part of their overall strategy, insurers need to make a number of strategic moves if they are going to grow and remain relevant well into the future. First, it is important to decide which business models to invest in. Most insurers are still tied to a business model which is based on pooling risk, calculating average pricing and generating gross premium income. But leading carriers are thinking about what their role will be in an economy where service is personalized, measured by outcome and delivered through powerful ecosystems. We found 77 percent of insurers agree that companies will move toward real-time platforms and systems as enterprises adopt mobility and Internet of Things solutions.
Secondly, insurers need to carve out spaces where innovation can flourish. Like most large organizations, insurers cannot reinvent their businesses overnight. They have legacy systems to manage, traditional revenue streams to protect, risk-averse cultures that are difficult to change, and cumbersome processes to surmount. Rather than trying to innovate from within their own four walls, they must create new spaces where innovative thinking can grow. Forty-six percent of respondents in our research said they have a dedicated innovation team and 42 percent have partnerships/alliances with innovative companies and/or organizations.
Being ready to flex and change with the market is important to having the right strategy and being innovative. With configurable and scalable Accenture Duck Creek software you can support initiatives from telematics to big data to exceptional customer service. “Delivering innovative products and services to our customers and agents is what drives us,” says John Barbagallo, Commercial Lines President of the Progressive Group of Insurance Companies: “Getting new solutions to market quickly, with quality and consistency across all customer and agent touch points is the primary focus of our platform modernization effort. Accenture Duck Creek offers the configuration, product design and rating engine we feel is best able to handle our business needs now—and in the years to come.”
Read the report “Digital Insurance Era: Stretch your boundaries” and find out how insurers have an opportunity to make a difference—by embedding themselves in tomorrow’s customer-centric digital ecosystems.
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