The Accenture Digital Innovation Survey reveals that most insurers are still looking at digital through a narrow lens, as a tool for incrementally improving their existing business activities: we call them the Digital Followers.
More than half (53 percent) of respondents do not have a digital strategy that covers the entire insurance value chain. Most insurers have adopted a hybrid approach where digital initiatives run in parallel with traditional business processes (55 percent) or to enable traditional channels (64 percent).
We found that only a quarter of respondents have a single view of their customer and are working to improve the customer experience across all contact points. Thirty-five percent of respondents are working toward a single customer view. This, despite the fact that customer-centricity is widely recognized as critical to success in today’s market.
This apparent gap between what insurers know they should be doing and what they are doing could be due to a number of factors: lack of a compelling business case, challenges with legacy systems and mixed views of the digital revolution. Notably, only half of respondents said that digital technologies bring more opportunities than challenges—this, in combination with other factors, could be driving insurers toward incremental change, rather than digital transformation.
Our study found that approximately one out of four insurers are taking the lead in digital transformation—the Digital Transformers—and are set to achieve significant benefits. These are the ones to watch, because if they are successful, their competitors will be scrambling to keep up.
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.
- Read Seizing the digital opportunity in insurance, part 3: Driving growth with digital.
- Read Seizing the digital opportunity in insurance, part 4: Extending the value chain.