Insurers evolving with the digital world
The digital revolution promises to change the face of insurance as we know it and as digital disruption creates a new world of opportunities, insurers are ready and awaiting.
We are in the Information Age, the synergy between technology and our everyday lives has become so entangled that we must accept we can no longer live without it. We have noticed that the Internet of Things (IoT), Blockchain and Big Data has arrived and taken over the insurance industry faster than we thought possible.
Thriving in the digital era
Every industry that hopes to be of significant relevance in tomorrow’s market must, if not already, familiarise themselves with the patterns and behaviours of digitally savvy customers.
To serve the next generation of customers, means that the insurance industry must familiarise itself with digital elements such as the Internet of Things (IoT), Big Data, Artificial Intelligence (AI), and Blockchain, among other elements that make up this digital world.
Combining innovative technologies with a digital mind-set embraces countless potential for insurers not only to achieve growth but to develop new business models and services that are geared towards success.
It is so important insurers not only to survive, but to thrive and if insurers can harness and capitalise on the opportunities at hand should thrive, while those that don’t will run the risk of falling behind and missing out to new competitors.
A digital journey and strategy
Generating customer loyalty and engagement to create value and revenue is essential. This needs to be consistent across all channels and devices, as well as social and digital media, which also needs to be personalised and consistent with new business acquisitions.
A successful digital transformation demands a structured approach and deciding where and what to focus on, in order to establish and maintain a competitive edge:
- Strategy: a clear long-term vision to overhaul operations and generate new sources of value based on clearly expressed, shared priorities;
- Value capture: Build the mechanisms to execute the strategy by improving todays’ business and processes through digitisation while simultaneously launching efforts to build tomorrow’s business through innovation;
- Capabilities: Invest in the core technical competencies needed to support digitisation and innovation, such as flexible modular IT architecture, deep data access and analytics, user-centric experience design and digital operations;
- Culture, talent and organisation: Harness agile test-and-learn capabilities at the front line to encourage experimentation and shift to a digital-first mind-set; recruit and develop new types of talent such as data scientists and design thinkers; and revise formal organisation structures to encourage collaboration between functions and reflect the importance of digital; and
- Road map: Have an integrated transformation road map that addresses all the elements above and considers the organisation’s digital maturity and readiness to embark on a multiyear digital journey as well as the value digital can bring to its specific markets and products.
A digitised industry
Although digitisation does tend to eliminate in-person contact, which can cause discomfort for some regarding job security. The bright side to this is skills enhancement where the industry is forced to become savvier and more equipped with in-job training and upskilling regarding technology.
This will create more suitable personnel for tomorrow’s insurance market. Granting the initial costs may be steep, in the long run the insurance industry will make savings and their customer experiences will be improved making it worth the industry’s while.
Insurers who proactively embrace and leverage off digital disruption to enhance their collaborative, innovative and operational capabilities will gain a competitive edge and thrive in this digital world.
Business Development Director
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