Digital is more than a new distribution channel—it is transforming every process in insurance and offering carriers an entirely new way of doing business. Key to realizing the benefits digital can bring, however, will be to unlock its potential. In today’s New York City roundtable, “The Digital Insurer—How Insurers Can Unlock the Digital’s Potential,” Accenture’s Mark McDonald examined how digital is changing the industry and bringing insurers new opportunities.
Four salient points emerged from this morning’s session:
- When it comes to digital investments and results, insurers are in the middle of the pack. Accenture research finds the industry lags others, especially in expectations of innovation. Insurers should look for ways to improve innovation’s contribution to their businesses and build its credibility as a strategy that delivers results.
- Becoming a digital business is different from doing digitized marketing or digitized operations. A true Digital Insurer incorporates digital technology to create revenue and results with innovative strategies, products, processes and experiences.
- Digital changes the nature of the customer experience, purchase decision and value. Consumers’ behavior has changed dramatically. Consumers have moved online, and as such, they have become more demanding. Insurers face several challenges in meeting the expectations of their consumers, including multiple channels, personalized interaction, increased competition and comparison, and proliferating digital technology.
- There are four capabilities for digital mastery. As digital channels grow in importance, insurers in pursuit of high performance need to develop a digital mindset—both in selling and providing service. Insurers can benefit from having four capabilities to master the new way of doing business: cross-channel excellence, customer-centricity and personalization, operational simplicity, and superior execution agility.
The dawn of the digital era is set to radically transform the insurance industry—are you ready? We look forward to seeing you at our next event on Tuesday, May 20, 2014.