As in any industry, a few insurance companies have a clearly developed vision of the future of their business and are investing in their transformation to realize that vision. We call these insurers the Digital Transformers, and they comprise 28 percent of the respondents in our recent survey.
Most of the Digital Followers are also investing in digital channels and other technologies. But their aim is less to transform than to explore digital capabilities and to enhance existing products, processes and efficiencies. The chart below shows the extent to which Digital Transformers are outpacing their slower competitors.
Across each of these dimensions, the front-runners show an appreciation of the digital disruption confronting the industry and the opportunities it presents. They are well ahead in deciding on their course of action and embarking on the first steps of their transformation.
Digging deeper, the survey shows that these Digital Transformers are actively encouraging customers and agents to use digital channels:
- A third of carriers offer lower prices for policies sold through digital channels and a further 37 percent plan to do so in the next three years.
- Almost half of life insurers (46 percent) assign agents to customers even if they buy online.
- Thirty percent of carriers strongly incentivize agents to make better use of digital and social media.
To secure their future in a transforming insurance landscape, carriers must not only keep abreast of new technologies, changing customer expectations and the digital disruption driven by the Internet of Things – they also need to grasp the opportunities that all of these trends present.
To learn more, register to download the Reimaging Insurance Distribution report.