The classic insurance market shrinks concurrently with technology are being implemented to prevent damages. For example can damages be more or less eliminated with automous cars and sensors protecting properties from being affected by humidity.
Empowered consumers, innovative competitors, changed market for capital and new technologies are also bringing massive changes to the industry. There seems to be a common understanding that insurers no longer can sell traditional commoditized indemnification products through own distribution channels like tied agents and call centers. Efforts are concentrated around creating an entirely new set of products that inspire customer demand, anticipating and addressing customer needs and wants. Products must be simple and flexible enough for customers to evaluate, tailor and purchase through any channel.
Interestingly, 63% of insurance executives expect their strategy to become entirely digital over the next 3 years, compared with 39% of executives in other industries according to Global Enterprise Survey. This is also the picture I see in our markets.
Much of what’s happening in the insurance industry today wasn’t feasible, or widely adopted, just a few years ago. Web-scale technologies, developed by companies such as Google and Amazon, were considered exotic. Consumers were just becoming comfortable with cell phones that ran “apps”. Content generated by social media users was beginning to ramp up, and the power of ecosystems pioneered by Silicon Valley giants was just a theory.
Today, that picture looks completely different. Buying habits continue to be reshaped, and expectations raised. Fuelling this is a combination of smart mobile devises that consumers carry in their pockets, plus new and innovative business models, such as those that tap into the “sharing economy”. Consumers of all ages have become comfortable with electronic transactions, and they expect ease and immediacy in everything they do online.
IT executives in the industry more and more see themselves as a service provider of a digital platform, where the purpose is to provide solutions that bring values directly to customers. Building their own ecosystems of partners and value-added service providers, and integrating them through digital platforms is also part of the strategy.
Keeping your business relevant
Insurance executives are challenged in keeping their business relevant and generating customer value for tomorrow’s demands. This goes for property and casualty insurers as for the re-insurance and pension industry. Digital insurance capabilities enable a closer relationship between carriers and customers, a relationship that can lead to more frequent interaction and real-time delivery of value. This is what we call Value Driven Insurance.
On December 6, DXC Technology is gathering the insurance industry in Copenhagen, where the company will address current challenges and provide insights on how to create customer value in today’s changing environment. Find the agenda and sign-up here: http://bit.ly/2yJz8La. I hope to see you in Copenhagen.
Author: Liselotte Munk Poulsen
Liselotte Munk Poulsen is Director, Industry General Manager at DXC’s Insurance business in North & Central Europe. With more than 20 years of experience from working with the insurance industry, Liselotte holds a solid track record and has built a solid performing insurance software company with a substantial consultant business. Through a holistic end-to-end perspective of the global insurance Industry, Liselotte enables her knowledge to provide value to the European insurance industry.