Digital transformation enables insur- ers to take advantage of many new opportunities. But first, they must define their strategic priorities. That means reevaluating business models,
processes, products and service.
There are three key challenges insurers should
address along the way:
They must better manage risk mitigation by
evolving from a financial loss compensation
focus to include physical risk prevention.
They must face down disruptive competitors
by enabling rapid solution development.
They must manage the enormous amount
of data generated by connected networks to
develop and deliver leading-edge products
The ability to address these challenges effectively will enable insurers to successfully compete
in the digital economy.
Customer expectations have changed. Evolving
customer demands coupled with technological
advancements mean that insurers are expected
to provide risk prevention in addition to crisis
management. These benefits can be managed by
technology that interacts with customers across
Essentially, technology is allowing insurers to
move into a world in which risk is more tangible.
Now, instead of just weighing risk, insurers can
also avert it. For example, auto insurers typically
determine rates based on factors such as age
or gender, which are outside a driver’s control.
Although most customers typically fall into a subjective “safe driver” profile, the traditional method
of providing auto insurance fails to effectively
reduce risk for customers, nor does it offer
relevant products and services based on individual needs and behaviors.
WITH THE RISE OF THE DIGITAL ECONOMY, INSURERS WORLDWIDE ARE
REIMAGINING THEIR BUSINESS AS THEY FACE THREE KEY CHALLENGES
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