That's the good news- the bad news being that these profits will mainly accrue to effective early adopters. In direct auto insurance in Spain, Germany, and the United States, a single player has captured the lion’s share of profits, up to 70 percent, leaving a long tail of sub-scale, often unprofitable carriers competing for the remainder.

The increases in profitability result from reductions in operating expenses couples with an increase in direct sales conversions.

In the longer term profits will drop as the impact of safer  vehicles, highways reduce accidents and insurance moves away from mitigation to prevention.

Insurers can take small steps in digital transformation but this makes them vulnerable to being in the long tail of lower performing carriers.

Or they can digitise the whole claims journey from FNOL to completion including the supply chain that repairs, replaces and pays the claimant.

To find out more see Digitising the Complete Claims Journey.And look at the McKinsey Report "Facing Digital Reality" via the link below