We are barely into 2015, but the still-new year is shaping up as one in which digital innovation plays a major role in transforming the insurance value chain.
Late last year, Accenture conducted a survey of 141 insurers in 21 countries (including the U.S. and Canada) in which we explored insurers’ attitudes regarding digital innovation. Among respondents, 84 percent said that digitalization is changing customer expectations, while 80 percent said that new technologies will radically change traditional insurance practices. Furthermore, 83 percent said that digital technologies will transform the way they interact with their customers.
The survey respondents saw some downside to digitalization, as well. Nearly two in five (39 percent) said they thought existing insurers would lose some margin as a result of digital technologies.
One of the most intriguing findings: More than half (59 percent) of respondents expect their industry peers to make acquisitions of digital insurance start-ups over the next three years to better position themselves in the digital world. If respondents are right, there will be a great deal of interest in telematics companies, insurance price comparison websites and analytics firms, along with digital start-ups. In fact, 43 percent of insurers surveyed have already acquired start-ups or are planning to do so in the near future to better capture digital opportunities.
It’s great that insurers are planning on making significant digital investments – including acquisitions – but we see a comprehensive digital strategy as the key success factor. In my next post, I’ll address some of the elements of such a strategy.
- Discover what industry leaders are doing to digitally succeed by downloading the report and exploring the data with our interactive tool.