Insurers told to prepare for new wave of digital disruption

Insurance companies will have to offer personalised policies delivered in real-time if they are to thrive in a ‘post digital’ era, consultancy firm Accenture has warned.

 

Friday 12

Insurers told to prepare for new wave of digital disruption

In a new report, Accenture said that digital offerings will soon no longer be a differentiating advantage for companies, but instead “the price of admission”.

 

Success will depend on their ability to harness artificial intelligence (AI) and other new technologies, delivering hyper-personalised, on-demand services that meet customers’ specific needs.

 

The report also suggests that failure to master social, mobile, analytics and cloud (SMAC) technologies will leave insurers unable to serve even the most basic of their customers’ demands.

 

“Most traditional insurers are behind the curve in this post-digital world, with a heavy reliance on mainframe technology,” Accenture’s insurance lead in Europe, Daniele Presutti, said.

 

“There’s an opportunity for insurers to forge a more personalised experience by harnessing customers’ digital footprints, but they’ll need to digitalise their core before they can reach these new heights.”

 

After surveying 6,672 business and IT executives, Accenture found that three in five insurance companies are already using technology to build products that boost the frequency and quality of customer engagement.

 

Four in five said digital demographics give their organisations a new way to identify opportunities, with three in five forming distribution relationships with non-traditional partners.

 

Accenture claimed that distributed ledger technology, AI, extended reality and quantum computing (DARQ) would feature heavily in the next wave of digital disruption.

 

It stated that these technologies would allow insurers to reimagine their entire industry and its role in the world.

 

“For insurers to excel in the post-digital environment, they’ve got to become more agile and implement SMAC as a core competency before they can rotate to newer technologies,” Accenture’s North American insurance lead, Jim Bramblet, said.

 

“They’ll also need to carefully choose the customised and on-demand customer experiences they want to target, and work backwards to map out how to get there, determining which ecosystem partners they need and where their place in that ecosystem will be.”

 

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