IDC InfoBrief: The future is digital
The digital disruption wave is pushing the insurance industry towards a digital future; and with disruption, comes new opportunity – particularly for the organizations who are bold enough to lead or follow fast.
The fast-changing insurance landscape: 5 key drivers toward a digital future:
- Empowered customers with rising digital expectations
- Regulatory guidelines becoming pro-digital
- The rise of startups
- Integrating insurance into consumers’ lifestyle
- Toward a consumption- based model
Confronting a Lagging Legacy: 5 traits to thrive in the digital future
So how can Australian and New Zealand insurers respond to the fast-changing demands of the industry? IDC identifies five key digital transformation (DX) traits needed to overcome long-standing challenges
- Meeting customers’ digital expectations
- Proactively manage risks and achieve compliance
- Staying nimble and efficient
- Meeting consumers’ digital lifestyle needs
- Gearing for a consumption-based model
Digital Insurance Platform of the Future: Aligning to serve the empowered customer
Digital transformation of insurance organisations requires a platform that is able to support them with the right systems and capabilities. IDC Financial Insights identifies 15 capabilities to help Australian and New Zealand insurers deliver a compelling digital insurance model.
Omnichannel
- 1. Increases both the number and type of customer touchpoints
- 2. Makes data, applications and functionalities consistently available across all customer touchpoints and channels
- 3. Has the capabilities to take on new channel types, and interaction types – voice, IoT, robo-advisory
- 4. Supports API-enabled services
As a Service
- 5. Allows access to current technology capabilities without high capital investments
- 6. Supports pay-per-use models of consumption
- 7. Provides scalability upwards and outwards
- 8. Provides 24/7 operations and managed services support
Flexibility, agility and auditability
- 9. Delivers speed and agility in business functions while insurers focus on core competencies. Unlike monolithic legacy systems, platform solutions help develop ecosystems for systems of engagement (particularly channel systems) and systems of record
Product development capability
- 10. Enables risk pricing to shift from mass-segmentation to tailored solutions for smaller customer segments (even a customer segment of one
- 11. Supports industrialised product rules and configuration management externalised from core engine
- 12. Provides rapid product development and testing frameworks
- 13. Leverages new data sources and use of advanced analytics for better product development
Platform of platforms
- 14. Provides a plug-and-play business model that allows multiple participants (producers and consumers) to connect and interact to create and exchange value
- 15. Supports API-enabled business processes that allow trusted third-party partners (fintechs, business partners, IT service providers) to participate in key parts of the insurance service lifecycle (e.g., policy administration, claims, and billing).