Digitization - New Focal Point of Every Sector

For ex., if an automated driver feature in your car causes an accident, who is at fault? The digital insurance company must invest in capturing these new forms of data and in data science to analyze it for forensics, patterns, and predictive actions to decide how to respond to these regulatory pressures.

These disruptive themes are challenging the traditional insurance business model:

1.  Physical footprint much less relevant today

Retail success no longer depends exclusively on an established network of brick and mor­tar stores. The modern consumer values con­venience and value for money above every­thing else. Success on the digital platform can be attributed to a well thought out strategy and a business model specific to the medium.p "Success on the digital platform can be attributed to a well thought out strategy and a business model specific to the medium."

2.  Big Data and analytics break entry barriers

The relatively lower cost of leveraging digi­tal technology compared to physical pres­ence, combined with customer acceptance of new products and brands, is breaking down the barriers to entry across industries. Big data is now a competitive advantage.

3.  New platforms making company interactions more ‘social’

Insurers are using both mobile and social media to respond to and engage with cus­tomers in unique ways. These platforms not only improve sales but also increase custom­er engagement and improve operational effi­ciency. 

4. Mobile Internet driving customer engagement

A large number of insurers have created mo­bile applications to improve customer ser­vices and/ or increase sales.

The IT in the insurance industry is ramping up to be ready for the digital revolution:

1. Building up the right expertise: Identify­ing and developing new skills, deciding on the right internal and external talent balance and robust training programs.
2. Integrated channels and single customer view: Customers should be able to choose any channel or combination of channels such as call centre, mobile phone/apps, social media, that best suit their needs.
3. Analytics team: An analytics team, which mines customer data for insights that inform marketing, proposition development, pric­ing, as well as claims, needs to be the core element of each model.
4. Improve customer–centricity
   1. Provide a single customer view
   2. Provide consistent and ‘real–time’ infor­mation of all interactions across channels like chat, call back, etc.
   3. Ensure seamless cross-channel acquisition processes reducing leakages during the purchase process when customers switch channels
   4. Consolidate vision of customer behavior and profitability across all channels
5. Create a device/platform—indepen­dent experience: All web-content must be specifically optimized for use by different operating systems and de­vices. Customers operate multiple devices in many cases across platforms and expect the same ease of access and usage.
6. Digital listening—engages consumers effectively: From pre-purchase to engaging after the purchase, social media can be used to get involved with the buyer at every step of the purchase funnel.