Shaping the insurer of the future: 6 key disruptors, 7 capabilities

wir2015The World Insurance Report 2015¬†(WIR2015) was launched on 26 February 2015. Capgemini and the European Financial Marketing Association (EFMA) conducted over 15,500 global customer surveys, across 30 insurance markets, and interviewed more than 150 insurance executives for the 8th edition of the report. Multi-year reflections are given on the insurers’¬†efficiency model and customer experience index. Special spotlight section this year is the insurer of the future.

Key disruptors for insurers

Though internet is often blamed to endanger traditional insurance business models, it’s certainly not the only cause for disrupting the playing field. According to the WIR2015 the key disruptors worldwide are:

  • demographic changes e.g. increased life expectancy and urbanization.
  • financial and economic conditions leading to uncertainty on return on investment and the appetite to insure risks.
  • regulatory intervention and scrutiny to report on more and reserve larger amounts of money, lowering risk appetite
  • extreme environmental conditions and catastrophes without prior history, and so not (fully) mitigated risks
  • new entrants, among them non-core insurance players, e.g. Google, IKEA, Wal-Mart
  • technology advancements, such as internet of things, analytics of big data.
Capabilities for future insurers

For existing insurance companies there are many ways to further mature and stay in business. The WIR2015 shows several capabilities to develop:

  • Transform effectively: Know your customers. Develop the vision, value proposition, business model, roadmap and business case to re-build your insurance company around the customers’ needs.
  • Price competitively: Manage pricing across all channels to drive profitable sales.
  • Connect elegantly: Maintain an informed personal dialogue with individual customers, across communication and distribution channels so as to understand them better.
  • Engage regularly: Use high-quality, rich and inspirational content together with sophisticated engagement strategies, to drive high-customer engagement.
  • Deliver perfectly: Deliver underwriting, claims, fraud management and investment services efficiently and effectively, improving customer experience.
  • Measure relentlessly: Monitor and optimise the performance of your business across all channels to improve efficiency-enabling higher-profitablility and margins.
  • See completely: Use a single view of data for all strategic, tactical and operational decision-making to improve accuracy, avoid duplication and increase insight.

Learn more on desired maturity levels, current and potential future practices in the report, which can be downloaded from worldinsurancereport.com.