Digital transformation essentially means reshaping and enhancing the underlying business model. And this is exactly what clients expect.
Insurers have always known that private clients have a limited desire to look at insurance solutions in detail. Insurance products have rarely managed to trigger interest or even raise an intense desire to own the product. On the contrary, what clients want most are simplicity, transparency and speed. This attitude has become more pronounced, especially in recent years, due to the influence of other industries that have transformed or re-created their business models. This has led to a general shift in client expectations that insurers must also meet. Not an easy task given that insurance products require a higher level of advice and are traditionally sold personally, especially as this is likely to remain the case for some time.
Essentially, then, we are dealing with two very different points of view – that of the client (policyholder, outside-in) and that of the insurance company (insurer, inside-out).
Their expectations of what makes digitalization successful diverge, as do their views of activities in this area to date. These two perspectives – as noted above – appear to have little overlap. While this is a classic conflict of objectives, it is by no means an insurmountable obstacle to successful digitalization of the insurance industry. Resolving this conflict starts by separating the two perspectives, the one of the policyholder and the one of the insurer, so they can be developed separately before being realigned step by step.
There are of course other perspectives that arise from the insurer's external relationships, e.g. with the claimant and other parties involved in the claims process, and – the most important - the intermediary. As a rule, the intermediary is positioned between the policyholder and the insurer and therefore holds both points of view.