Imagine a different world where insurers provide real-time coverage based on a customer’s day-to-day activities. It would be a seamless experience, where every moment matters.
Providing a richer digital experience
As consumers gain a more holistic view of their risk exposure and readiness for the future, providers will be able to suggest whether they are on track with their longer-term goals or if change would be more beneficial.
Both insurers and consumers will benefit from digitizing processes that will lead to faster and accurate underwriting and claims experiences. As operations are streamlined, artificial intelligence (AI), machine learning and robotics will result in greater efficiencies. Expense ratios will improve and, more importantly, the universe of insurable risks will expand significantly.
Overcoming industry challenges
- Digital needs to be at the core of everything and insurers will need to integrate multiple technologies, such as data analytics, AI, cyber and visualization, as well as wearables, telematics and connected devices. To do this, insurers need to build and manage partnerships and ecosystems that will provide access to competencies and rapidly become a key source of competitive advantage.
- Trust is low in the industry and regulation is tightening around privacy and customer data. Insurers will need to rebuild trust and leverage partnerships to access data and create value for all parties involved while navigating a challenging regulatory environment.
- Talent is in short supply and insurers will need to identify, recruit and retain individuals with a different skill set than they have in the past. Existing competencies will need to evolve while making the industry appealing to data scientists and digital specialists. Creating the right organizational culture to thrive in the future would be a key imperative for forward-looking insurers.
How to unlock the value and benefits
Insurers will need to step up their digital transformation activities if they are to keep pace with their peers. They must define their ambitions and develop a road map to get there. This will require changing mindsets, rethinking operating models and embracing a culture that focuses on listening and engaging with customers.
See how our Global Insurance team helps clients develop the critical skills and capabilities to transform their businesses and deliver the digital architecture to enrich the customer experience.
Summary
Providing services on the promises of a personalized insurance experience will require a digitally enabled organization that is agile, nimble and responsive to customer needs. Insurers will have a competitive advantage if they can leverage ecosystems, rebuild consumer trust, and make financial well-being a reality for everyone.
