Insurance is at a turning point, according to Capgemini in its introduction to the new World Insurance Report 2017. Technology is revolutionizing every aspect of the insurance industry, changing market dynamics and business models. At the same time, needs and expectations of consumers in relation to the insurance offer are increasingly evolving.
Digital, in fact, has become an integral part of customer experience, especially among the younger generations, the Y Generation and the “tech-savvy”, requiring greater flexibility, convenience and customization of insurance solutions. Meet the new needs is on the one hand a key factor big companies, on the other hand it is the value proposition of new insurtech, naturally digital companies, which still do not persuade consumers when it comes to involve “confidence”. The latter is still in the hands of the big companies.
Hence the collaboration between traditional and insurtech companies, which need each other, and the need for a more targeted strategy by traditional companies, enabling innovation and meeting increasingly demanding customers without losing sight of business goals.
The video below summarizes the report.
Current partnerships between companies and insurtech are quite varied: strategic partnerships, acquisitions, venture capital investments, incubators. Some of these have already become specimens: The report mentions, among other things, the cases of AIA (Asia), which has created an acceleration program; Aviva, which has launched 3 Digital Garages (London, Toronto and Singapore); BNP Paribas Cardif with its open innovation model Open-F@b Call4Ideas in Italy; MetLife in Singapore which has created LumenLab, its innovation center.
This tenth edition of the World Insurance Report – here the 2016 edition – is based on interviews with 103 senior executives of insurance companies and over 8,000 customers from 21 markets in North America, Europe, Latin America and Asia-Pacific.
Below an info-graphic summary.