Other parts of this series:
Digital technology is bringing unprecedented change to the insurance industry, but the disruption has only just begun. According to our survey of approximately 450 insurance executives in 15 countries, 90 percent of carriers anticipate that the pace of technology change will increase rapidly over the next three years.
For insurers, moving at the speed required to be a digital insurer means developing new skills, new processes, new products and whole new ways of working. It may mean launching innovation teams, new business models or even new businesses, either within the organization or separately as joint ventures. Among those surveyed, 51 percent of insurers said they plan to pursue digital initiatives with new digital partners in the next two years and 75 percent plan to do so with startup partners.
However, change at the pace we’re seeing creates new areas of risk for insurers. More than three-quarters of insurance executives in our research agree they are exposed to more risks than they are equipped to handle as a digital business. Cyber risks, especially, are coming to the fore.
The huge scale that gives software much of its opportunity amplifies the potential problems and compounds the risk. This means that insurance leaders will inherently need to take digital trust into consideration in everything they do. Security, privacy and digital ethics cannot be reverse-engineered around a technology—they must be integral to the development process from the outset.
To learn more, register to download the full report: People First: The Primacy of People in the Age of Digital Insurance