Helping Insurers to Digitally Transform

by | 1 Dec 2020 | Insurance

Big Data

The DIA (Digital Insurance Agenda) is the world’s largest conference for innovation in insurance. This year it was delivered online, but still attracted renowned international companies, such as Allianz, Chubb and Ping An, to share their vision for the industry. What does the future look like? And who takes the lead?

I discussed these issues with Roger Peverelli, one of the founders of the DIA.

 

What trends do you see in the insurance market?

More and more attention is being paid to insurtechs that help large insurers to serve their customers remotely. Many insurers that depend on advisers for their sales, and have not set this up digitally enough, have suffered from this in the past eight months. These insurers are increasingly investing in digitizing their distribution channels. There are four important trends for the longer term.

1. Health First: Health is in the spotlight. This translates into a growth in life and care products, as well as offering additional services for a healthy lifestyle. Actify from Achmea and Vitality from a.s.r. can benefit from this, for example.

2. Connected Living: This has been accelerated by working from home. In recent months, many people have invested in their homes because they spend more time there. This provides opportunities for combining home insurance with cyber and additional services based on all kinds of connected devices.

3. Unprecedented Uncertainty: There is uncertainty about our health, about the economic outlook and about information that may or may not be true. Insurers must be a beacon of reliable information and help consumers in these times of uncertainty.

4. Empathy in Everything: The great wave of togetherness seems to have disappeared. Yet it has become clear that people have a great need for companies that show that they care about their customers.

 

Which business case inspired the most?

The most interesting business cases are about making the industry more efficient and effective. More efficient by offering higher quality at a lower cost. And more effectively by offering the customer more added value. You will find that extra added value by thinking broader than traditional insurance. Unipol, one of the largest insurers in Italy and number 10 in Europe, is a good example. They want to serve their customers in all areas of mobility. Unipol therefore has a company in private lease, its own damage repair network, a company that facilitates toll payments for customers and even a car sales site. The design and growth of those companies is driven by data, including from the black boxes that 4.2 million insurance customers have installed in their cars.

 

What added value do insurtechs offer?

Most of the attention goes to the often young companies that try to attack the established order. Typically they focus on solving problems customers have when doing business with insurers. For example, speed and convenience. But insurers often already deal with these matters themselves. That makes these insurtechs less successful. Insurtechs that are successful mainly focus on data. They use data to offer customers new added value. And to develop new business models. These tech companies therefore help insurers to digitally transform and innovate faster. To put the two types in relation: we have about 2,000 insurtechs in our database. 20% of these belong to the first group and 80% to the second group.

 

“The most interesting business cases are about making the industry more efficient and effective”

 

What does all this mean for the consumer?

The customer can expect everything to be simpler, faster and more customer-friendly. But more importantly: customers can expect more added value. They receive products and especially services that suit them, wherever they are. Consumers are much more likely to experience what the insurer means to them. They will find that insurers play an active role in helping consumers live healthier or to use money more wisely. By offering new and relevant services and through more frequent contact with customers, the major social role of insurers becomes much clearer.

About the author:

René Teuwen is an interim marketing manager and consultant. He helps you solve issues for your organization, stimulate business initiatives and maximize your ROI. Based on a thorough analysis, he sees opportunities in the market which he translates into new propositions and business concepts.

Photo by ev on Unsplash

 

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