Noted journalist Russ Banham, in his article entitled “Googlezilla,” discusses insurers’ vulnerability to Google-ization and how it could unfold.
“The launch pad will most likely be broking personal lines and small commercial lines business,” writes Banham. “But few doubt Google will stop there.”
At Accenture, we call it digital disruption—where capital-heavy, data-savvy companies exploit technologies to create better ways to deliver insurance.
Paul Nunes, director of the Accenture Institute for High Performance and co-author of “Big Bang Disruption: Strategy in the Age of Devastating Innovation,” is quoted in Banham’s article. He offers five factors that would make Internet and high-tech leaders formidable as insurance providers:
- Customer intimacy from relating to tens of millions of people who interact daily with their technology platforms, applications and other tools.
- Unparalleled data analytics on consumers’ Internet search and browsing histories that allow “near-perfect market information.”
- Lower prices, thanks to data analytics that far exceeds those at traditional insurers and brokers.
- Peerless automated, online transactional model that makes the most of today’s decreasing technology costs and increasing Internet usage.
- The cool factor honed from using mobile devices for just about everything, which is right up the millennials’ alley.
How can insurers prepare ahead of newcomers? Banham’s article suggests starting with what they have, such as making IT systems more user-friendly or using technology to maintain customer ownership.