Download Ascent Look Out 2016+
- Connected world will transform the industry
- Data and analytics empowering the insurance industry
- Auto insurance market being impacted strongly
- Reputation, brand and improving customer intimacy are top concerns of insurers
- Expected that half of premiums will have a telematics component by 2025
- 68% of consumers willing to download and use an insurance app
- Just 2% of large firms have explicit cyber cover
- Overall auto insurance premiums expected to be reduced by 25% by 2025
- CUSTOMER EXPERIENCE
- The new digital era is putting pressure on both life and pensions (L&P) and property and casualty (P&C) insurers. Customer experience needs to be mobile and digital by default. Insurers are, however, lagging behind when it comes to the mobile experience.
- BUSINESS REINVENTION
- For all lines of business, the next decade will be defined by increasing connectivity and growing volumes of data. New players with innovative new business models and insurance products and services will emerge, some disrupting traditional distribution models.
- OPERATIONAL EXCELLENCE
- Insurance companies are adopting technological solutions to automate and increase the accuracy of the underwriting process, support variable pricing, help maximize the efficacy of scarce underwriting resources and increase direct sales. But this is not enough.
- TRUST AND COMPLIANCE
- Insurance companies must take steps to ensure they’re compliant with intensifying consumer protection legislation. New cyber-risks and the ‘cloudification’ of IT mean insurance companies need to rapidly adopt new security technologies to ensure proper data and consumer protection.
Global Insurance Market Executive
For all lines of business, the next decade will be defined by increasing connectivity and growing volumes of data. Business model innovation will be driven by collaboration across broader ecosystems.
|Technology||x||y||x (phone)||y (phone)||Impact||Range||Section||Keys||Description|
|Semantic technologies||87||56||89||68||Adolescent||2018||Low||excellence||Companies are also storing both operational and customer data in private clouds, providing secure and robust access to the information they need to improve efficiency and decision-making as well as enhance customer experience. Behind the scenes semantic technologies help their intelligence systems to understand the relationships within and across data.|
|Cloud Service Integration||74||33||62||66||Adolescent||2017||Medium||experience,excellence||Already on the landscape, cloud computing has just touched the tip of the iceberg when it comes to the role it will play in insurances. Insurance companies are increasingly hosting their systems in the cloud, from where they’re delivered as cloud services. Cloud Service Integration ensures tight integration between all the different cloud services, from standard policy underwriting and to claims processes.|
|5G networks||37||40||55||38||Emerging||2019+||High||experience||Customers access cloud services from wherever they are. Moreover, mobile solutions combined with a secure and pervasive 5G networks are extending the reach of business services, attracting new customers who prefer self-service tools to other forms of interaction. These modern customer service tools significant increase policyholder satisfaction, while reducing agent workloads.|
|Blockchain||61||20||26||47||Adolescent||2017||High||excellence||Blockchain technology applies as well to fraud management, payments, identification, document authentication, claims management and M2M security (IoT). It significantly reduces the cost of performing these activities while improving security.|
|Context-rich systems||76||15||72||22||Early Adoption||2017||High||experience||Increasingly sophisticated digital advisors also enhance the customer support experience: the truly omni-channel avatar can engage seamlessly with the policy-holder through a multitude of online channels. Behind the scene context-rich systems combine intelligence from diverse systems to proactively anticipate each customer’s specific needs.|
|DevOps||87||8||62||32||Early Adoption||2016||High||excellence||To develop and deliver new products quickly, cost-effectively and to a high standard, insurers are adopting a DevOps approach to software development. By enhancing collaboration between software developers and IT operations the DevOps approach reduces time-to-market and cost while improving quality.|
|Distributed analytics||64||18||36||46||Adolescent||2017||High||business||By exploiting data from predictive models such as weather, insight from social media, data from geo-positioning systems and a wealth of broader information sources, the IoT is allowing insurers to enrich individual usage based insurance (UBI), tuning it closer to the needs of the individual.
Distributed analytics allows diverse data sources to be analyzed together without the need to first copy the data to a central location. This impacts everything from wearables (such as wristbands) right up to oil rigs.
|High performance computing||70||40||78||40||Early Adoption||2018||Medium||excellence||High performance computing allows insurance companies to take full advantage of the benefits offered by IoT data.
Models help them anticipate and prevent catastrophes, eliminating the need to pay out for damages created by such events.
|Hybrid cloud||80||5||23||12||Early Adoption||2016||Transformational||excellence||Private clouds allow insurers to make resources – both data and applications – available from anywhere and on any device. No matter where the customer engages from or where an employee or partner is working from, the systems that they interact with and the data these systems use will be the same. Hybrid cloud then allows companies to augment their own omni-channel services with relevant third-party services – such as news, hints and tips or even weather forecasts – further enhancing the experience.|
|67||5||32||13||Early Adoption||2017||Transformational||business||A few years from now and the Internet of Things (IoT) will have transformed not only the health, motor and home markets but also commercial lines with its widespread use of sensor technology, advanced analytics and new ecosystems.|
|Mobile first and real-time customer interfaces||90||11||74||43||Early Adoption||2016||Medium||experience||New customer usages require investment in mobile first and real-time customer interfaces that link seamlessly with backend systems.|
|Pattern-matching technologies||67||16||61||26||Early Adoption||2017||High||business,trust||Pattern-matching technologies help companies leverage the vast volumes of data available today to identify and then address unusual behavior patterns, including potentially fraudulent behaviors.|
|Prescriptive analytics||65||48||66||62||Adolescent||2018||Medium||excellence||This dynamic customer profiling allows for more sophisticated segmentation that has improved cross-segment sales and cut response times for origination and claims. The prescriptive analytics that can decipher what customers want even before they know themselves provides ‘next best offer’ capabilities.|
|Privacy-enhancing technologies||52||24||65||26||Adolescent||2018||High||trust||As customers share more information with insurers, insurers must ensure robust compliance with consumer protection legislation. Privacy-enhancing technologies (PET) control disclosure of data, helping companies to manage privacy risk by ensuring compliance with data protection legislation and regulation.|
|Robotics, Intelligent automation||47||33||38||52||Emerging||2018||High||excellence||Workplace robotics, as automated virtual workers, that can be deployed across unstable architectures or multiple legacy systems as easily as a human operative take on a lot of the dull, time sensitive and repetitive back office tasks at a much lower cost. 100 per cent auditable and reliable, they can be deployed with minimum disruption and, unlike the human workforce, never make mistakes, work 24/7 and can be programmed for a multitude of variable tasks.|
|Rules engines||85||17||56||64||Early Adoption||2016||Medium||experience||Resilient and agile frontend tools need powerful and extremely flexible rules engines to deliver ultra-personalized products and pricing.
Insurers are achieving their goals of 100 percent straight through processing now that core insurance IT systems are aligned with the best-in-class automatic process solutions. Business-rules based configuration that leverages advanced analytics is allowing standard policy underwriting and claims processes to be automated, eliminating manual work activities at an enterprise scale.
This increases the accuracy of underwriting decisions, supports variable pricing and helps insurers to maximize the efficacy of scarce underwriting resources.
Able to handle multiple product lines simultaneously, rules-based configuration is accelerating time-to-market for new products.
|Sentiment analytics||94||10||87||39||Mainstream||2016||Low||business||The lifestyle, behavioral and health data collected from mobile devices and wearables gives insurers a deeper understanding of their customers. What’s more, with social networks now well integrated into our everyday lives, insurers are using advanced social media analytics with its sentiment analytics to enhance this insight even further.|
|Software-defined technologies||57||26||73||26||Early Adoption||2018||High||excellence||Cloud native applications allow companies to take full advantage of web-scale computing and software-defined technologies. They allow new products to be tested and launched within significantly shortened project lifecycles.|
|Streaming analytics||71||18||67||30||Early Adoption||2017||High||business,excellence||Big Data is helping leading insurance companies outperform their peers. Its advanced streaming analytics enables insurers to leverage real-time data, for example about properties likely to be affected by weather data for claims initiation, optimization or prevention. These dynamic customer profiles signal insurers moving away from the generic customer profiles that cater for millions of customers to individual 360° customer profiling.|
|Self-adaptive security||77||41||85||25||Adolescent||2018||Medium||trust||While trusted information brokers provide insurers with the confidence to share more information with agents, dynamic access control and new generation of collaborative tools ensures they have access to the information, systems and locations they need to access, but only when they need it.|
|Virtual assistants||82||57||83||73||Adolescent||2018||Low||experience||Digital advisors have a vital role to play in helping insurers avoid scandals such as the miss-selling saga that dented consumers’ trust. These intelligent virtual assistants provide accurate, consistent and compliant information throughout the sales processes and listen in on call center agents to ensure they do the same.|
|Wearable computing||82||25||80||41||Early Adoption||2017||Medium||business||Health wearables, such as smartwatches and sensors embedded in clothing, have created a huge health insurance market, with policies that include preventive medical assistance provision and connections to health professional doctors and medics.|
|Web-scale computing||62||39||70||42||Early Adoption||2018||Medium||excellence||The IT organization and architecture has been redesigned for web-scale computing, underpinned by a software- defined architecture. This has allowed a more profound digital transformation of insurance operating models, from front to back. Its operational simplicity allows insurers to be more agile while optimizing investments.
They have the agility they need to rapidly and successfully launch and support new products and new mobile apps. In other words legacy systems will need to be dramatically reduced in scope and perimeter, core processes and business rules taken out by dedicated modern, flexible, real time architectures.
Key Market Challenges