Why the time for transformation is now
At a time of disruption in the life and pensions industry, traditional players must embrace transformation to be ready for the future.
Companies need to meet rising consumer expectations for ‘wow factor’ experiences; they must comply with new regulations and pass public scrutiny; they must handle emerging competitors who advance from every angle; and they must continue to innovate and stay relevant over the lifetimes of generations of new customers.
While the prospect of transformation on this scale can lead to inertia in some organizations, the ones who thrive will be the ones who act now. Progressive protection companies will recognize that change is not about individual technologies, gimmicky products, or a single new touchpoint. It is about working through transformation at an organization and ecosystem level.
With millennials more comfortable providing and sharing their data, there is a huge opportunity to provide more targeted services with greater market knowledge than ever before. Financial technology (FinTech) and insurance technology (InsurTech) companies have reformed the industry by doing this already and pensions and life protection providers must adapt – not in five or ten-years’ time when baby boomers and Gen Xers are no longer the dominant demographics and companies have missed their opportunity to establish brand trust with younger generations, but right now.
The ability to build customer experience into everything the business does will become a differentiator against current major competitors. It will also prove to be a way of levelling the playing fields with the FinTechs and InsurTechs. This requires an ability to think differently, a determination to continually adapt, and a customer-centric approach to change.
Companies need an integrated strategy for cutting the cost-to-serve and reducing risk while also knowing how to become an integral part of consumers’ lives. They need the capacity to manage transformation while offering ways to meet the needs of new generations of consumers. A combination of data-driven personalization, omni-channel experiences, and relevance at key ‘moments of truth’ is a sure-fire route to success.
As competitive pressures grow, rethinking traditional approaches to pensions and life protection will yield new customers and ensure that progressive providers can lead the industry once again. With market transformation showing no signs of slowing, it is incumbent on the incumbents to transform.
Digital Vision for Life & Pensions
This article is part of the Atos Digital Vision for Life & Pensions opinion paper. We explore the realities of digital transformation for life and pensions companies amidst wider societal change and an increasingly disrupted market.