Insurers lagging in digital transformation strategies: Capgemini
Only 37% of insurers have a holistic digital transformation strategy in place, despite the vast majority saying that capabilities in this area are important.
That was one of the key findings of Capgemini’s World InsurTech Report 2019, produced in conjunction, with the European Financial Management Association, Efma
“Digital maturity is front of mind for insurers, but aspirations do not match reality,” said the report. “For example, 79 percent of insurers say advanced data management capabilities are important, but only 37 percent have a holistic digital transformation strategy in place.”
Capgemini said that four fundamental shifts in the industry are underway: The shift from product focus to consumer experience, the evolution of data as a critical asset, a transition from asset ownership to shared economy, and partnerships with specialists over purchasing or building.
However, the report said that the industry’s progress in partnerships was, like digital strategies, deficient. The report noted that 68% of insurers say partnerships are critical, but only 32% are collaborating with ecosystem partners to provide value-added services.
A digitally integrated ecosystem will support the real-time, personalized experiences that customers are demanding, said Capgemini. Digital integration will be critical for insurers as customers are expecting more convenience and seamless services, said the report.
“As the insurance marketplace evolves, insurers will move beyond their traditional role as payers covering customer losses to partners that identify and forecast risk, helping with insurance and related non-insurance needs,” said Anirban Bose, chief executive of Capgemini’s financial services strategic business unit. “To deepen customer relationships, insurers will have to collaborate more with InsurTechs who are already mastering the customer experience by leveraging the most innovative technologies and use of data.”
“Insurers will benefit from partnerships with InsurTechs as the marketplace becomes more crowded,” said Vincent Bastid, Secretary General of Efma. “The data shows that insurers and InsurTechs are eager to partner with each other, which will ultimately benefit the customer in the form of more advanced products and services.”
“Insurers will benefit from partnerships with InsurTechs as the marketplace becomes more crowded,” said Vincent Bastid, Secretary General of Efma. “The data shows that insurers and InsurTechs are eager to partner with each other, which will ultimately benefit the customer in the form of more advanced products and services.”
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