The insurance industry has always had to adapt to new technologies, but today’s digital revolution requires insurers to go beyond tweaking their digital strategies—rather, they must innovate and transform their entire business.
There are two similar-sounding, but quite different words used to describe digital improvements. Notably, there is a difference between digitization and digitalization:
- Digitization is a means for insurers to optimize costs or effectiveness: to apply new data and technologies to existing business processes to improve efficiency.
- Digitalization takes an outside-in, customer-centric view of the business, seeking new opportunities to generate customer value. Efficiency is part of it, but the underlying push is to use new technologies to develop innovative strategies, products and processes to create new revenue.
The Accenture Digital Innovation Survey offers a pulse on insurers’ digital plans and capabilities. We surveyed C-level executives at 141 insurers in Europe, the Americas, South Africa and Japan, across P&C and life insurance.
Our survey revealed two groups of insurers: Digital Transformers and Digital Followers. Where Digital Followers regard digital as a tool for incremental improvement, Digital Transformers have embraced digitalization and achieved more ambitious results.
Over the course of this blog series, I’ll examine the study’s key findings in more detail. Join me next week as I discuss insurers’ top priorities for digital.
For more information:
- Learn more about the Accenture Digital Innovation Survey 2014, including our interactive data visualization tool.