Accenture research on insurers’ attitudes toward digital revealed a troubling gap: while 75 percent of insurers expect digital to have a major impact on the entire insurance value chain within 5 years, less than half (47 percent) have a holistic digital strategy and 59 percent describe their digital investments as “exploratory.”
Bolster your defenses
As insurers head into a digitally connected landscape, they must protect their current core: their ability to assess, price and cover risk. In order to do so, they will need to respond quickly to consumer and technology trends, as well as competitive threats from existing and new players.
The precise game plan will depend on each insurer. However, insurers may consider how they can:
- Leverage the cloud to enable integrated and flexible systems.
- Digitize and automate front- and back-office functions. The new playing field is driven by automated processes, business rules and data-driven workflows. Priority should be given to enabling capabilities that improve the customer experience and create operational efficiency.
- Expand direct-to-consumer digital interactions through social networks, direct channels, mobile channels and apps.
- Empower agents with the digital tools they need to compete effectively.
- Establish a data structure and operating model that enables the enterprise to capture insights from the Internet of Things, social networks and the rapidly expanding universe of data sources. Concurrently, insurers should optimize their use of data within the enterprise, such as sharing information between the underwriting and claims departments.
Once an insurer has protected its core capabilities, how can they expand and benefit from a digitally enabled marketplace? Join me next week to find out.
- Register to download Stand on the Sidelines, or Boost Competitiveness? How to make bold moves on the new insurance playing field (PDF).
- Read The new insurance playing field, part 1: Game changers.
- Email me to discuss how Accenture can help you bolster your defenses on the new insurance playing field.