Some of the key findings of the Accenture Digital Innovation Survey 2014 included expected investments of more than $40 million in digital projects, with three-quarters of survey respondents expecting digital to transform the insurance industry within the next five years.
However, we also noted a gap between insurers who are using digital technologies for incremental efficiency improvements (Digital Followers) and those who are using digital technologies to transform their business to become more customer-centric and seek new sources of revenue (Digital Transformers). We call it the digital divide.
In general, Digital Transformers:
- Have a holistic digital strategy that covers the entire insurance value chain (73 percent)
- Have a single view of the customer—or are working to achieve one (82 percent)
- Have acquired or plan to buy innovative companies to acquire new digital capabilities (62 percent)
- Believe that establishing new partnerships is key to differentiation (54 percent)
- Use digital technologies to provide personalized products and services (52 percent)
- Are three times more likely than Digital Followers to engage with their target audiences on social media (34 percent)
Digital Transformers tend to be larger companies, so their planned digital investments are also larger than the average: $56 million over the next 3 years, compared with $43 million.
In short, our research finds that Digital Transformers have a clear eye to the future and the role that digital technologies play in helping them improve their own capabilities, expand their activities and drive growth.
For more information:
- Learn more about the Accenture Digital Innovation Survey 2014, including our interactive data visualization tool.
- Read Digital innovation in insurance, part 1: Introduction.
- Read Digital innovation in insurance, part 2: Digital investments to top $40 million.