Fundamental changes to insurers current model unavoidable:WITR 2019

The roadmap to the future requires insurers to break internal silos, seamlessly connect with ecosystem players, and become inventive. Inventive Insurer competencies cover intelligent processes, open platforms,customer centricity, and an innovative corporate mindset, according to WITR 2019 research and analysis.

 

Success within the future insurance marketplace will require a structured approach to product development based on a keen understanding of customer needs and preferences, astute partner selection, and a pragmatic go-tomarket strategy. Clearly, fundamental modifications to the current operating model will be unavoidable.

 

This is one of the key findings of Capgemini’s World InsurTech Report 2019(WITR 2019) , produced in conjunction, with the European Financial Management Association, Efma.

 

The roadmap to the future requires insurers to break internal silos, seamlessly connect with ecosystem players, and become inventive. Inventive Insurer competencies cover intelligent processes, open platforms,customer centricity, and an innovative corporate mindset, according to WITR 2019 research and analysis.

 

As data streams are transmitted via more and more connected channels and turned into actionable insights, insurers will be able to appraise customers and prospects quickly. Digitally agile insurers will strategically leverage data management to bolster risk assessment and underwriting and to facilitate partnerships with other industry players.

 

The new insurance paradigm has prompted some unexpected pairings recently as well as numerous synergistic success stories,. Among the collaborative outcomes is a shift toward product and service bundling that allows customers to satisfy both their financial and non-financial needs all at once.

 

The most successful firms will be those that accelerate their decision-making and foster a culture that embraces experimentation, testing, and learning.

 

``We believe insurers that act decisively will stand among the leaders in the marketplace of the future.We predict the marketplace of the future will showcase bouquets of offers that, like artful arrangements of complementary flowers, generate higher perceived value than a single blossom because a bouquet of blooms can be custom designed to suit a customer’s individual tastes and needs,'' said said Anirban Bose, chief executive of Capgemini’s financial services strategic business unit and Vincent Bastid, Secretary General of Efma.

 

In recent years, the InsurTech movement and intuitive, straightforward self-service platforms have been enabling more relevant connections between insurers and consumers. In both personal and commercial insurance, new and emerging risks have exposed a not-to-be-ignored gap in clients’ perception of coverage versus what many firms offer.

 

Incumbents and InsurTechs must embrace each other's unique strengths and work together, particularly now as policyholders seem receptive to insurance offerings from new entrants such as multinational BigTech firms. Their complementary set of competitive advantages enables both traditional insurers and newcomers to unlock economies of scale, skills, and scope to secure profitable opportunities and a compelling role in the new insurance marketplace.

 


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