Other parts of this series:
Ecosystems: the tech insurers need might be at their fingertips
As the face of their competitive landscape shifts, insurers are confronted with the question: how do we innovate our business and operating models to provide a competitive experience, attract a new breed of customer and retain our employees? Is it a question of following digital innovation trends or something much deeper?
It is tempting to assume that the answer lies in the vast capabilities of new technologies. Artificial intelligence (AI) promises a new solution to mundane data processing tasks, and cloud platforms offer fully integrated communications across the business. Surely rolling out these technologies will empower traditional insurers to compete with disruptors in the post-digital age?
The reality of investing in new technologies requires a strategic approach. Insurers know that it’s not enough to pour money into all the latest and shiniest technologies and hope for the best. Accenture’s philosophy behind sustainable change is the Wise Pivot. Companies that successfully pivot to ‘the new’ first transform their core business to drive up investment capacity, then they grow the core business to sustain the fuel for growth. The next step is to develop and scale new sources of revenue. Finally, they carefully but deliberately shift their focus from the core to the new, enabling the business to grow at pace.
Most importantly of all, a Wise Pivot is informed by a smart investment strategy that ensures the right timing, the correct calibration, the proper scale and the wisest direction.
Insurers must be open to collaboration
If insurance carriers want to recover from technical debt, their investments can no longer rely on traditional practices. The Wise Pivot requires a deft strategy—and precise calibration.
Leaders can leverage technologies such as SaaS and cloud platforms, as well as collaborative relationships with digital ecosystem partners. By collaborating with a partner with the right technologies, insurers can identify and launch game-changing innovations far quicker and less expensively than if they were to roll them out on their own. This is the way of the future—our research shows that disruptive start-ups are three times more likely to leverage ecosystem partners than traditional leaders. By making the most of their ecosystems, insurance carriers can capitalize on the technologies, talent and resources of their external partners and yield several times the return available from internal investment.
In my final post in this series, I will discuss in practical terms how insurance leaders can examine their technology spend in order to derive the most value from current and new technologies. If you’d like to read the full report on technology investment, click here.
I’d love to speak to you about your technology investment strategy. Contact me here.