Digital transformation vital to the survival of insurance firms

By Jonathan Dyble
Share
Capgemini’s World Insurance Report 2018, conducted in partnership with Efma, has highlighted the need for traditional insurance companies to digitally...

Capgemini’s World Insurance Report 2018, conducted in partnership with Efma, has highlighted the need for traditional insurance companies to digitally transform their operations as customers are showing an increasing willingness to purchase insurance products from technology firms.

The report reveals that 40% of customers would consider a mobile insurance app as an important channel, whilst 38% of those aged 18-34 stated that they would be willing to receive personalised insurance offerings through a number of channels.

See also:

With this in mind, the likes of Amazon, Apple and Google are in a strong position to enter the market, whilst long standing industry operators are set to lag behind if they do not invest in and implement new technologies.

“The use of data and being able to offer a truly digital customer experience are both critical for the insurer of the future, something Big Tech firms like Amazon and Google excel at,” said Anirban Bose, Global Head of Financial Services and Member of the Group Executive Board at Capgemini.

“The threat from such entrants is more real than the insurance industry might want to admit. Insurers, risk assessors by nature, must urgently turn their gaze inwards and consider the competitive risks within their own industry in order to evolve and survive.”

One method that insurance providers may pursue in the aim of satisfying the growing expectations from customers is through partnering with industry-specialist technology companies such as insurtechs.

“To gain value from their investments, insurers must think about the big picture and develop a holistic approach that is strengthened by insurtech capabilities, rather than piecemeal adoption,” said Vincent Bastid, CEO of Efma.

For more information, see the full World Insurance Report 2018 from Capgemini and Efma.

Share

Featured Articles

How Meta’s Open Source AI is Giving US the Edge in AI Race

Meta's Llama model has been made available to government agencies and contractors, aiming to strengthen America's position in the global AI race

Cloudflare: How Technology Impacted the US Election

Cloudflare reports on traffic shifts and cyberattacks during the US election, highlighting global implications for digital democracy and cybersecurity

How Ferrari & IBM Will Drive F1 Fan Engagement

Scuderia Ferrari HP teams up with tech giant IBM to enhance digital experiences for Formula 1 fans through data analytics and innovative technology

How Social Media Bans are Impacting the Global Tech Industry

Digital Transformation

How Perplexity AI Boomed From US$500m to US$9bn

AI & Machine Learning

IAG: How AI is Impacting the Aviation Industry

AI & Machine Learning