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Insurance Innovations Driven by Adversity

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Steve Jobs gets a lot of credit for re-imagining computing, making us mobile, and putting the technology in our hands that has changed the way we communicate, do business, buy products and more. While in this instance it was the availability of increasingly powerful data storage options and more widespread Internet connectivity that made the leaps and bounds of jobs possible, adversity is often the catalyst for dramatic change.

Before the ongoing COVID-19 pandemic, the insurance industry was working hard to dispel the notion of being archaic and out of touch. Specifically, part of this work involves simply being faster and more willing to evaluate, procure and implement new technologies. Today, in the challenges presented by the global health and economic crisis, insurance organizations are scrambling to fully support a significant shift in customer risk requirements, demands and expectations.

But remember, innovation and invention come from adversity. For insurers looking to adopt a new mindset and take advantage of the latest technologies as a way to adapt to market changes, there is an opportunity for the personal, commercial, economic and social reforms that are underway. Insurers may be stronger and more capable than the pandemic to meet new customer expectations and global demands and ultimately accelerate growth. Unfortunately, change is rarely easy.

There are essential operational and technology changes at a fundamental level that will enable insurers to match the pace of business of the future and be successful in this new era of insurance. And, as the insurance industry continues to grow, it is important to empower leaders with the courage to embrace the opportunity that comes with disruption in terms of product innovation, distribution redefinition and new technology foundations.

Product innovation

The past decade has seen a shift in lifestyle, workplace trends, entrepreneurship, and new businesses driven by technology, such as online grocery, drone-based businesses, and new service businesses powered by IoT. Also, we have seen new economies emerging, such as gig and sharing economies.

Today, there are more small businesses than ever before, more women starting businesses, and more people working from home. Expectations are different. Policyholders demand greater transparency in premium calculation or risk assessment, self-service options for bill payment, policy documentation, and claim status, and the ability to actively influence premiums through behavior modifications. These changes mean that individuals and businesses alike are taking on new risks or taking on existing risks in different ways, and subsequently, product innovation, true product innovation, can no longer wait. The move to more personalized, on-demand, usage-based insurance (UBI) products is in all areas of business, but in particular in property and casualty (P&C), as a way of accommodating and supporting the evolving business landscape. as methods.

redefinition of distribution

While many commercial policyholders will still purchase coverage from an insurance agent or broker, the next generation of policyholders expect channel options. In addition to the agent/broker option, insurers today must offer viable online or direct functionality through a dedicated portal, partnerships with management general agencies (MGAs) that can quickly cover new geographies, and points Through off-purchase, embedded, or ecosystem play integration opportunities. It is no longer just about convenience, it is about awareness and matching the right coverage through the right channel at the right time with the right policyholder. Finding a mix of distribution channels that allow for faster market, manufacturer profitability, and a greater degree of self-service is critical for insurance executives redefining the distribution diagram.

new technology foundation

Investments in cloud and next-generation core systems, as well as emerging technologies (such as artificial intelligence (AI) including machine learning (ML), robotic process automation (RPA) and natural language processing (NLP) solutions) support new greenfield do. Accelerating innovation and growth in business models and insurance products and in weeks versus months or years. New commercial coverages, such as cyber, cannabis, and on-demand or UBI for commercial autos today are born digital and naturally flexible thanks to the technology platforms on which they are built. As confidence in emerging technologies grows, enthusiasm should be dampened by industry expertise for immediate adoption that does not compromise regulatory compliance, privacy or security of Personally Identifiable Information (PII).

Throughout history, there has been a strong link between disruption and opportunity – driven by innovation in business and technology. COVID-19, among other cultural, demographic and global pressures, is changing customer behavior and business models and creating demand for product innovation, redefining distribution and new technology foundations. It follows that these demands create opportunities to make insurance better and more relevant through innovative application of technology. But just as Steve Jobs re-imagined the world of personal computing, insurance leaders and organizations must be ready to think differently to make the most of this open window.

To hear more about opportunities, see Recent on-demand roundtable With industry leaders on occasions.

Co-authors:
Seth Rachlin, Global Insurance Industry Leader, Capgemini Financial Services
Dennis Garth, Chief Strategy Officer, Majesco
To keep this conversation going, connect with Seth linkedin and Denise on linkedin or Twitter

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.

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