Life insurance coverage CIOs are effectively positioned to assist enterprise leaders discover alternative amidst business dynamics. Based on Accenture Analysis, these embrace Millennials who’re on the age the place life-stage shopping for historically happens, Child Boomers who’re getting into retirement en masse — lots of whom are unprepared — and $30 trillion in monetary and non-financial belongings that may switch between generations within the subsequent decade. Insurance coverage CIOs can assist enterprise leaders form their organizational methods and information expertise funding within the areas that drive essentially the most enterprise worth. Accenture Analysis factors to 5 tendencies which might be driving expertise investments:
Pattern 1 – Rise of direct distribution
Company distribution is shifting focus to the prosperous market, leaving the person market ripe for brand spanking new entrants and established insurance coverage carriers. A key enabler for achievement is a digital distribution technique and clever expertise to draw new prospects and retain present prospects in between coverage issuance and claims payout. Whereas direct-to-consumer gross sales have risen 29 p.c in recent times, they nonetheless characterize lower than 10 p.c of complete gross sales — and a big alternative for all times insurers. (Supply: Conning examine, 2016 Life-Annuity Insurance coverage Client Markets Annual)
Pattern 2 – Shift to easy modular insurance coverage merchandise
With service turning into a key differentiator amongst suppliers, significantly these with direct on-line choices, merchandise which might be the least advanced to know and best to buy would be the most profitable. Carriers should modernize and/or fully exchange their legacy programs with PAS expertise that may construct, take a look at and launch new merchandise quickly and profitably. They need to function as “frictionless companies,” enabling ecosystem partnerships that scale shortly and broadly, making use of personalization and automation to function extra effectively, and offering client experiences like these of Google, Amazon, Fb and Apple (GAFA).
Pattern three – Period of buyer hyper-relevance
We’re getting into the period of buyer hyper-relevance. Insurers, competing for particular person shoppers accustomed to the person experiences and personalised choices of GAFA, should present related and deep personalization – “one measurement matches me” – and human-digital interplay. Platform-based competitors will develop into the norm, whether or not the platform is ALIP or another insurer expertise platform, GAFA, or another ecosystem.
Pattern four – Knowledge analytics and clever companies
This development is the enabler of hyper-relevance, mentioned above. Insurers must monetize their information to ship new alternatives for prime line progress and efficiencies that enhance the underside line. Cheaper information storage and compute energy that’s nearly limitless and getting inexpensive by the day are advancing AI at an accelerated tempo. AI, together with machine studying, pure language processing and deep studying mixed with automation, will ship extra predictive insights and personalised services, add higher worth and redefine how insurance coverage enterprises operate.
Pattern 5 – Digitalization of the service expertise
Insurers are simplifying their core processes and programs, and integrating information from a number of companies to ship distinctive service and working effectivity. They’re connecting information from a number of programs of file and programs of engagement, no matter line of enterprise or entity, to construct personas that characterize each particular person / group. This allows insurers and advisors to develop their companies by personalised, services. Digitalization additionally makes it straightforward to conduct transactions and keep buyer relationships.
Insurance coverage CIOs are at a expertise turning level. Cloud and microservices are two applied sciences serving to them capitalize on these tendencies to drive enterprise at the moment and effectively into the long run. Learn extra in my earlier put up “Core Insurance coverage Methods within the Cloud: New strategy eases cloud transition for insurers.”