Many insurers have taken the opportunity to use digital to do familiar things better, but the true promise of digital is the ability to do things differently—for example, to produce innovative outcomes, retool the insurance workforce and engage with customers. In this Insurance Chart of the Week, we’ll look at one way that insurers can leverage digital to do things differently: by expanding the insurance value chain.
Radical expansion of the insurance value chain is key to success
As part of the Accenture Digital Innovation Survey, we surveyed 141 insurers across the globe. Among the study’s key findings was the need for insurers to look beyond the traditional insurance value chain. More specifically:
- Eighty-two percent of insurers are looking to acquisitions to achieve a better position in a digital landscape. Top targets for these acquisitions include new digital insurance start-ups (59 percent), companies specializing in telematics (47 percent), aggregators (43 percent) and analytics companies (38 percent). In fact, 43 percent of insurers had made, or were planning these acquisitions when we conducted our survey.
- Partnerships are also appealing, with 72 percent of insurers having or planning to establish distribution partnerships. Their target partners are banks (69 percent), Internet players like Apple, Google and Facebook (44 percent) and aggregators (44 percent).
- Finally, 61 percent of insurers have added, or are considering adding, non-insurance products as a way of positioning themselves as part of a customer’s lifestyle. Loyalty rewards (66 percent), home services (63 percent) and lifestyle-based services (56 percent) top the list of non-insurance product offerings currently being considered.
As insurers continue to develop their understanding of how they can fit into a digital ecosystem and become an integral part of their customers’ lives, we expect to see more examples of insurers offering a broader range of value-added services.
- Register to download The Digital Insurer: Accenture Digital Innovation Survey (pdf).
- View other Insurance Chart of the Week videos.
- Email me to discuss how Accenture can help insurers expand beyond the traditional insurance value chain.