A key finding of the Accenture Digital Innovation Survey: many insurers believe there is a strong link between digital initiatives and growth. The survey found that P&C insurers expect their digital initiatives to increase premium income by an average of 5 percent over the next three years, while life insurers anticipate a boost of 7 percent.
Our research revealed three growth levers:
- Innovation. Notably, survey respondents believe that existing insurers stand to gain more from innovation than new entrants—that they have a built-in advantage within the market. The key, of course, is to use that advantage effectively.
- Digital channels. We found that 29 percent of respondents expect the most premium growth by expanding their customer base through the use of digital channels.
- Usage-based insurance. One-third of respondents expect usage-based insurance (telematics) to account for more than 6 percent of total auto insurance premiums by 2017—and that’s significantly more conservative than many experts, who suggest 20 percent of all vehicle insurance will incorporate some form of usage-based insurance by 2017.
Our research suggests that insurers see the connection between digital, innovation and growth. However, here’s the critical point: insurers should not fall into the trap of simply digitizing existing channels. Upgrading digital or mobile-friendly versions of existing products or services will not unlock the full benefits that digital technologies offer. Insurers need to fundamentally change their mindset, to consider the business from the outside-in—to think as their customers would—and innovate across the entire insurance value chain.
For more information:
- Learn more about the Accenture Digital Innovation Survey 2014, including our interactive data visualization tool.
- Read Seizing the digital opportunity in insurance, part 1: Are you seeking improvement or new sources of revenue?
- Read Seizing the digital opportunity in insurance, part 2: Digital is a top priority.