Only room for 4/5 digital insurers to win the lion's share of profitability in each product and/or geography segment. (McKinsey)
That means if you don't make 2018 your year of digital deployment you will be left behind. Not just for one sliver of the business but for all perils and all markets. A tall order so you had better ask potential insurtech partners some enquiring questions.
- Can my clients report any type of claim via our website and via their mobile devices?
- Can my clients easily upload any type of video, imagery, dashcam footage, or documents from their mobile to our claims system without the need to download an app?
- Can this evidence be shared with all parties to a claim via a fully end-to-end secure digital process that orchestrates all supplier interactions?
- Can these processes, with their workflows and automation, be easily configured by our business people in hours and days rather than by IT people in weeks and months?
- Are GDPR compliance, robust resilience and state of the art security fully built in from the outset?
- Can I wrap this platform around our legacy core systems without complex and inflexible integration?
- Can all this be had without incurring any upfront investment costs, purely paying according to usage?
If you score 7/7 then you could be one of the 4/5 but if not you will be fighting for the thin profits in the tailing remaining insurers
For several years now, insurance CEOs globally have been inundated with commentary and research, foretelling the potential penalties or risks to their business, of failing to adopt digital. Likewise, McKinsey predicts that, for example, a motor insurer fully embracing digital will double its profits in five years. Slow adoption holds insurers back Yet, only four percent of UK insurers included in a recent survey by Altus Consulting are running digital claims processes. While some insurers have made huge efforts to digitalise aspects of the sales process, by ensuring a faster, slicker online experience, this survey shows how the back office, such as claims - which can be the most important point of interaction between a policyholder and insurer - remains woefully untouched.