The Digital Insurer How Insurers Can Unlock the Digital’s Potential May 1, 2014
Mar 29, 2015
The Digital InsurerHow Insurers Can Unlock the Digital’s Potential
May 1, 2014
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Big Bang Disruption
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• Disruptive technological innovations have historically started out cheap and simple, gradually improving until they challenged incumbents
• Today, new products are perfected with a few trial users and then embraced quickly by the market, wiping out incumbents in a flash
• Regulated industries are especially vulnerable
- When the law limits competition, businesses have little incentive to innovate
- Once the disrupter finds a way in, the collapse is much more sudden
Customers’ are willing to adopt of new channels for interacting with their insurers
When did you first purchase insurance through the following channels?
Channels used for over 2 years Most recent channels
62%
Online
38%
60%
Retailer
40%
57%
Insurance company
telephone service
43%
52%
Bank
48%
39%
Insuranceagent
61%
39%
Independent agent/ broker
61%
38%
Your employer
62%
<2 years ago
>2 years ago
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The ‘switching’ economy for insurance is estimated at $400 billion in premium
4
• Personal-lines P&C and life insurance worldwide, 2013
• Total premiums multiplied by the switching factor
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Digital Business vs. Digitizing the Business
Cost/Margin
Revenue
Today
New & New
Digitize Processes
New & Old
Digital Business
Feeling DigitalApplying new technology to old operations
Being DigitalCombining new technology with new operations
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Insurers are in the middle of the pack in terms of digital investments and results
Results/Benefits
Investments
3.4
3.3
3.2
3.1
3.0
2.9
2.8
2.7
2.6
2.5
2.4
2.3
2.2
2.1
2.0
1.9
1.8
1.7
1.6
1.52.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.0
Defense
Natural Resources
Utilities
Energy
Automotive
M&E
Retail
CG&S
Insurance
Capital Markets
Industrial Equipment
Banking
AF&TLS
Health I&TS
Chemicals
E&HT
Life SciencesGovernment
FY13-17 CAGR at or above average of 14.2%
FY13-17 CAGR below average of 14.2%
Communications
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Digital high performers in financial services industry outcompete their peers over time
2.Large P&C Company
Digital Maturity
8.Very Large Asset Mgmt. Company
Market Share % Improvement (2008-2013)
4.
10.
3.
6. 1.Large P&C Company
-10%-20%-30%-40% 40%10% 30%20%
5.
7.
High
Low
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13.Large Life Insurance
Company
14.Large Life Insurance
Company
Its time for a different definition of Digital
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Digital technology provides savvy executives with the means to turn technology into business results, innovation and value
• Digital (adj.): increasing information intensity and connectedness of customer and business resources.
• Digitize (verb): applying technology to customer and business resources.
• Digital Business (noun): an organization that incorporates digital technology to create revenue and results via innovative strategies, products, processes and experiences.
Human Ability x Capability^Information
Technology
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Design from the customer’s perspective “outside-in”
Integrate all channels and customer touch points
Execute flawlessly and consistently across touch points
Continuously upgrade products and services
Make digital core to the business model
The challenge is to invent products and services so beloved by customers that they will pay more for them
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Companies that lead in customer satisfaction:
Digital business principles and imperatives
• Put Outcomes over Processes
• Start and Finish Outside-In
• Build Platforms
• Organize for Change
• Customer Experience
• Cross Channel Excellence
• Operational Simplicity
• Execution Agility
Principles Imperatives
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A Roadmap for the Digital Insurer
Do the business right
Innovative and TransformativeCustomer Experience
CustomerCentricity
Cross Channel Excellence
Operational Simplify
Superior Execution Agility
Standalone
Multi-channel
Connected
Interactive
Digital• Claims• Underwriting• Product Manufacturing
• Marketing• Distribution• Policy & Contract Mgmt
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Becoming a Digital Business is different from doing digitized marketing or digitized operations
Internal Focus
External Focus
Digitize Processes
Revenue
Profit Margin
Digitize Channels
Digitize Marketing
DigitalizeOperations
DigitalBusiness
Digital Transformation
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Three recipes for digital business success
Where will organizations write their digital future?
Product+ Connections= Service
Service+ Information= Experience
Experience+ Platform= Outcomes
Blackboard: Digitizing Internal Operations
Whiteboard: Digitizing External Marketing
Tablet: Creating New Value Propositions
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The Digital Insurer: Delivering Exceptional Customer Experiences
The Digital Insurer:What does it take to be a Digital Insurer?
The Digital Insurer:Accenture 2013 Consumer-Driven Innovation Survey
Accenture Thought Leadership
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