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The Digital Insurer How Insurers Can Unlock the Digitals Potential May 1, 2014.

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Presentation on theme: "The Digital Insurer How Insurers Can Unlock the Digitals Potential May 1, 2014."— Presentation transcript:

1 The Digital Insurer How Insurers Can Unlock the Digitals Potential May 1, 2014

2 Copyright © 2014 Accenture All rights reserved. 2 Big Bang Disruption 2Copyright © 2014 Accenture All rights reserved. Disruptive technological innovations have historically started out cheap and simple, gradually improving until they challenged incumbents Today, new products are perfected with a few trial users and then embraced quickly by the market, wiping out incumbents in a flash Regulated industries are especially vulnerable -When the law limits competition, businesses have little incentive to innovate -Once the disrupter finds a way in, the collapse is much more sudden

3 Customers are willing to adopt of new channels for interacting with their insurers When did you first purchase insurance through the following channels? Channels used for over 2 years Most recent channels 62% Online 38% 60% Retailer 40% 57% Insurance company telephone service 43% 52% Bank 48% 39% Insurance agent 61% 39% Independent agent/ broker 61% 38% Your employer 62% <2 years ago >2 years ago Copyright © 2014 Accenture All rights reserved. 3

4 The switching economy for insurance is estimated at $400 billion in premium 4 Personal-lines P&C and life insurance worldwide, 2013 Total premiums multiplied by the switching factor Copyright © 2014 Accenture All rights reserved. 4

5 Digital Business vs. Digitizing the Business Cost/Margin Revenue Today New & New Digitize Processes New & Old Digital Business Feeling Digital Applying new technology to old operations Being Digital Combining new technology with new operations Copyright © 2014 Accenture All rights reserved. 5

6 Insurers are in the middle of the pack in terms of digital investments and results Results/Benefits Investments Defense Natural Resources Utilities Energy Automotive M&E Retail CG&S Insurance Capital Markets Industrial Equipment Banking AF&TLS Health I&TS Chemicals E&HT Life Sciences Government FY13-17 CAGR at or above average of 14.2% FY13-17 CAGR below average of 14.2% Communications Copyright © 2014 Accenture All rights reserved. 6

7 Digital high performers in financial services industry outcompete their peers over time 2. Large P&C Company Digital Maturity 8. Very Large Asset Mgmt. Company Market Share % Improvement ( ) Large P&C Company -10%-20%-30%-40%40%10%30%20% High Low Copyright © 2014 Accenture All rights reserved Large Life Insurance Company 14. Large Life Insurance Company

8 Its time for a different definition of Digital Copyright © 2014 Accenture All rights reserved. 8

9 Digital technology provides savvy executives with the means to turn technology into business results, innovation and value Digital (adj.): increasing information intensity and connectedness of customer and business resources. Digitize (verb): applying technology to customer and business resources. Digital Business (noun): an organization that incorporates digital technology to create revenue and results via innovative strategies, products, processes and experiences. Human Ability x Capability ^ Information Technology Copyright © 2014 Accenture All rights reserved. 9

10 Design from the customers perspective outside-in Integrate all channels and customer touch points Execute flawlessly and consistently across touch points Continuously upgrade products and services Make digital core to the business model The challenge is to invent products and services so beloved by customers that they will pay more for them Copyright © 2014 Accenture All rights reserved. 10 Companies that lead in customer satisfaction:

11 Digital business principles and imperatives Put Outcomes over Processes Start and Finish Outside-In Build Platforms Organize for Change Customer Experience Cross Channel Excellence Operational Simplicity Execution Agility PrinciplesImperatives Copyright © 2014 Accenture All rights reserved. 11

12 A Roadmap for the Digital Insurer Do the business right Innovative and Transformative Customer Experience Customer Centricity Cross Channel Excellence Operational Simplify Superior Execution Agility Standalone Multi-channel Connected Interactive Digital Claims Underwriting Product Manufacturing Marketing Distribution Policy & Contract Mgmt Copyright © 2014 Accenture All rights reserved. 12

13 Becoming a Digital Business is different from doing digitized marketing or digitized operations Internal Focus External Focus Digitize Processes Revenue Profit Margin Digitize Channels Digitize Marketing Digitalize Operations Digital Business Digital Transformation Copyright © 2014 Accenture All rights reserved. 13

14 Three recipes for digital business success Where will organizations write their digital future? Product + Connections = Service Service + Information = Experience Experience + Platform = Outcomes Blackboard: Digitizing Internal Operations Whiteboard: Digitizing External Marketing Tablet: Creating New Value Propositions Copyright © 2014 Accenture All rights reserved. 14

15 The Digital Insurer: Delivering Exceptional Customer Experiences The Digital Insurer: What does it take to be a Digital Insurer? The Digital Insurer: Accenture 2013 Consumer- Driven Innovation Survey Accenture Thought Leadership Copyright © 2014 Accenture All rights reserved. 15


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