Purchase auto insurance online

Purchase auto insurance online with absolute the best prices. Auto insurance quotes

World Insurance Report 2018: Digital agility is key for insurers as BigTechs ponder entering the market | Business Wire

/
/
/
41 Views

PARIS–(BUSINESS WIRE)–While Insurance companies struggle to deliver a superior customer

experience, BigTech1 firms are poised to enter

the insurance industry. By enhancing their digital agility and

developing future-ready operating models, insurers have an opportunity

to attract and retain customers to compete with this disruption, finds

the World Insurance Report (WIR) 2018 from Capgemini

in collaboration with Efma.

The report also examines how traditional incumbent insurers have fallen

behind their banking peers in meeting customer demands, making them

vulnerable to such non-traditional entrants.

“The use of data and being able to offer a truly digital customer

experience are both critical for the insurer of the future, something

Big Tech firms like Amazon and Google excel at. The threat from such

entrants is more real than the insurance industry might want to admit,”

said Anirban Bose, Global Head of Financial Services and Member of the

Group Executive Board at Capgemini. “Insurers, risk assessors by

nature, must urgently turn their gaze inwards and consider the

competitive risks within their own industry in order to evolve and

survive.”

Insurance is playing catch-up in delivering technology-enhanced

customer experiences

Insurance firms ranked third after retail and banking on cross-industry

customer experience scores, with the greatest difference among Gen Y2

customers aged 18 to 34. While more than 32 percent of Gen Y customers

said they'd a positive experience with their bank, less than 26

percent reported a positive experience with their insurer. The report

also found that customers across all segments now accept digital

communications at the same level as conventional channels, with more

than half of customers placing a high value on company websites for

conducting insurance transactions. More than 40 percent considering

a mobile app as an important channel.

Additionally, as new digital technologies enable innovative, value-added

services, almost 46 percent of tech-savvy3 customers and 38

percent of Gen Y customers are willing to receive proactive,

personalized insurance offerings through a variety of channels, which

could lead to new revenue opportunities.

BigTech firms are poised to take advantage of the insurance

industry’s missteps

The large, multinational technology organisations that represent BigTech

are taking slow, deliberate steps towards establishing a presence in the

insurance industry by leveraging their strong reputation for superior

customer experience. Globally, 29.5 percent of customers said they'd

consider buying at least one insurance product from a BigTech firm,

which is a 12-percentage point increase from 2015 when only 17.5 percent4

of customers indicated willingness to purchase insurance from BigTech

firms.

Gen Y and tech-savvy segments appear most inclined to switch loyalties

from traditional insurers. These customers not only cite lower positive

experiences with traditional firms. They're also more likely to

change their insurance provider within 12 months and are more open to

purchasing insurance products from BigTech firms.

Evolving customer preferences drive insurer investments in digital

agility

Disruptions from environmental, technological. Organizational

factors along with the ambitions of BigTech companies are making

digitally agile operating models a necessity. InsurTechs, new insurance

firms that use technology innovations to focus efficiencies and attract

specific customer segments, are leading the way with digital agility.

Collaboration between traditional insurers and InsurTechs is essential

for the efficient and cost-effective development of digital capabilities

across the industry.

More than 80 percent of insurers cite evolving customer preferences as

the most critical factor driving digital agility. Their investments

provide insights into the industry’s future. Almost two-thirds of

insurance firms are testing smart watches and wearables, more than

one-third have deployed telematics. More than 55 percent are

investing in speech recognition and blockchain, with robotic process

automation currently the most highly deployed core digital technology

among them.

“To gain value from their investments, insurers must think about the

big picture and develop a holistic approach that's strengthened by

InsurTech capabilities, rather than piecemeal adoption,” said

Vincent Bastid, CEO of Efma.

Digitally enabled, future-ready operating models insure long-term

sustainability

To succeed in the digital era, the report highlights that insurance

firms must foster digital agility and develop operating models to

deliver a superior customer experience, bringing together the best of

digital and traditional channels. For example, more than 65 percent of

surveyed respondents said end-to-end personalisation of the customer

journey was their highest need. However, to enhance the customer

experience with personalisation, insurers need a digitally integrated

ecosystem that seamlessly interconnects insurers with customers and

partners, in order to enable an efficient flow of information and

services.

A digitally integrated ecosystem supports the real-time, personalized

services that customers are growing to expect and demand. With enhanced

digital agility, insurance firms can gain greater insight into customer

needs and improve time to market for innovations, while driving greater

operational efficiency and cost savings the report concludes.

About the World Insurance Report 2018

The World Insurance Report (WIR) 2018 covers all the three broad

insurance segments―life, non-life. Health insurance. This year’s

report draws on research insights from 20 markets: Australia, Belgium,

Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan,

Mexico, Netherlands, Norway, Singapore, Spain, Sweden, Switzerland, the

United Kingdom. The United States. The survey provides insight into

customer preferences, expectations. Behaviors with respect to

specific types of insurance transactions.

For more information, explore the report website at www.worldinsurancereport.com.

About Capgemini

A global leader in consulting, technology services and digital

transformation, Capgemini is at the forefront of innovation to address

the entire breadth of clients’ opportunities in the evolving world of

cloud, digital and platforms. Building on its strong 50-year heritage

and deep industry-specific expertise, Capgemini enables organisations to

realise their business ambitions through an array of services from

strategy to operations. Capgemini is driven by the conviction that the

business value of technology comes from and through people. It's a

multicultural company of 200,000 team members in over 40 countries. The

Group reported 2017 global revenues of EUR 12.8 billion.

Visit us at www.capgemini.com.

People matter, results count.

About Efma

A global non-profit organisation, established in 1971 by banks and

insurance companies, Efma facilitates networking between

decision-makers. It provides quality insights to help banks and

insurance companies make the right decisions to foster innovation and

drive their transformation. Over 3,300 brands in 130 countries are Efma

members.

Headquarters in Paris. Offices in London, Brussels, Barcelona,

Stockholm, Bratislava, Dubai, Mumbai. Singapore.

Visit www.efma.com.

1 BigTechs refer to large, multinational technology firms

such as Google, Amazon, Facebook, Apple. Alibaba.

2 In the context of the report, Gen Y customers are

categorized as individuals aged 18 to 34, while Non-Gen Y

represent customers aged 35 and older. These groups are Mutually

Exclusive and Collectively Exhaustive (MECE)

3 In the context of the report, customers that use online and

mobile channels frequently to conduct transactions such as purchasing

electronics, clothes, food and groceries, paying bills, etc. are

categorized as Tech-Savvy. Tech-Savvy and Non-Tech-Savvy

customer segments are MECE. Gen Y and Non-Gen Y. Tech-Savvy

and Non-Tech-Savvy customer segments aren't MECE

4 Capgemini WIR Voice of the Customer Survey, 2015

adimage
  • Facebook
  • Twitter
  • Google+
  • Linkedin
  • Pinterest

Leave a Comment

Your email address will not be published. Required fields are marked *

It is main inner container footer text