I would first like to wish you all a very happy and rewarding 2015.
As we continue our walk through the key findings of our Digital Innovation survey, it’s extremely good news that insurers are seeing digital transformation as growth driving growth.
This second major conclusion of the Digital Innovation Survey is equally good news—where there are growth expectations, we can expect focused attention and a desire to get results. P&C insurers are expecting their digital initiatives to generate additional revenue growth of 5 percent over the next three years, while life insurers are setting their sights even higher, at 7 percent additional growth.
In a later blog, I’ll return to this point. Suffice it to say here that I believe that these growth expectations are actually rather conservative, given the potential for digital revenue creation.
It is also highly interesting that respondents expect existing innovative insurers to grow their market share more than new entrants coming from other industries. In the same vein, 29 percent expect that the biggest contributor to premium growth will be the expansion of their existing customer bases through the use of digital channels. This shows that no matter how much insurers might fear new competitors or be battling the challenge of legacy systems or processes, they recognize that digital transformation can generate substantial value in terms of market share and revenue growth.
The potential positive impact will, of course, be limited to insurers, but will also include their distributors. Actually, carriers expect their successful distributors to also ride the digital wave, with better management of customer data expected to have a major positive impact on intermediaries’ prospecting, lead conversion and cross/up-selling
Carriers also see successful intermediaries leveraging the contact center and self-service capabilities they provide, as new digitally enabled tools improve sales efficiency and reduce costs.
In effect, carriers expect their existing channel of agents, brokers and other intermediaries to benefit from digital initiatives and investments; 64 percent of insurers plan to focus their investment on digitally enabling their traditional channels.
Next week, the final—and to my mind, most important—of the key findings.
For more information, download the full survey results of the Accenture Digital Innovation Survey 2014: Seizing the Opportunities of Digital Transformation and explore the data using our data visualization tool.
Other papers on the topic that you might find useful: