By Eric Landwaart, Industry Director, Financial Services
There are many drivers of innovation in the insurance sector, but it is technology that has been the most disruptive force. From automation to media fragmentation, new distribution models to wearables and implantables, what does technology mean for the future of the insurance industry and the Connected Consumer it serves?
We are all familiar with the evolution and revolution that new technologies can bring to a sector. In insurance specifically, there are now innovative ways of assessing risk and handling claims, value chains and distribution models, and a whole new layer of competitors to contend with. Consumers have become more demanding and “savvy”, and reaching them has become harder as more media channels have emerged. Insurance companies need to find their purpose - and profit - in the future, to identify and optimize emerging opportunities and to harness emerging technology.
There are four groups who have the potential to win tomorrow: insurance companies of course as the incumbents in the sector with their advantages of huge client bases and investment power. But there are also other corporates such as energy or automotive players, the technology giants such as Google, and start-ups in the financial industry, the “fintechs”. We’ve been tracking how brands and organizations in these four different groups have been able to maximize the latest technology in the insurance sector. Some of our favorites are:
Insurance companies: BIMA in Uganda offers “micro-insurance” for life, accident and health to low income families via their mobile phones, a group of clients previously unreached and so until now unserved by the industry
Other corporates: “Opel On Star”, a connected car that comes with integrated insurance, bringing the benefits of convenience and confidence to car owners
Technology players: Google’s Bharat Saves, a joint project involving the technology player, the Indian government and other financial players. It offers a financial planning tool for Indians available via an app or website
Fintechs: Thailand’s Claim Di, a clever app that can gather and store all the relevant information at the site of a car accident if both parties have it installed
All four groups have strengths as these innovations show, and a common theme in many of the examples here is finding the right partnerships. For some insurance organizations, partnering and collaborating with other players represents unchartered territory. However, this way of working also offers opportunities to maximize experience and assets in order to win in the future in what is a rapidly moving and complex sector.
In insurance, no one group of players will win tomorrow, but by partnering all have the opportunity to have a key role to play. Insurance companies can be at the heart of that future. We can help you maximize your chance to succeed by supporting your partnership strategy, keeping customer needs at the center of your business, maximizing data, and optimizing new technology.