New digital technologies have disrupted the insurance sector like never before, and to increase their market share, insurers need to deliver more personalized and real-time offerings, tailoring each policy to the specific needs of people, according to a new study by Accenture.
For insurers, embracing emerging digital technologies is essential to surviving the transformation sweeping through the industry.
A large majority of respondents to the survey conceded that ‘digital demographics’ can provide their organization with a new way to identify market opportunities, helping them launch new products such as real-time risk protection and mitigation services.
“There’s an opportunity for insurers to increase and improve their touchpoints with customers and forge a stronger, more personalized experience by harnessing customers’ digital footprints,” says Daniele Presutti, who leads Accenture’s insurance practice in Europe.
“Most traditional insurers are behind the curve in this ‘post-digital’ world, with a heavy reliance on mainframe technology. This makes it difficult for them to explore opportunities in the cloud and technologies such as AI to transform their operations.”
According to the report, failure to master social, mobile, analytics and cloud (SMAC) technologies will leave insurers unable to serve even the most basic demands of customers in this digital era.
“For insurers to excel in the ‘post-digital’ environment, they’ve got to become more agile and implement SMAC as a core competency before they can rotate to newer technologies, including distributed ledger technology and AI,” says Jim Bramblet, who leads Accenture’s insurance practice in North America.
“They’ll also need to carefully choose the customized and on-demand customer experiences they want to target and work backwards to map out how to get there, determining which ecosystem partners they need and where their place in that ecosystem will be.”