Insurance is one of the biggest industries in the world. According to Swiss Re Institute, it generated more than $5,0 trillion in 2018. This industry, much as we’ve been witnessing with the banking industry, is slowly but surely being disrupted by the adoption of new and advanced technologies. For the last few years, a number of factors, such as the growing consumer demands and expectations, have been responsible for the disruption of many industries. For example, 85% of consumers with insurance would like their insurer to give them insight into how they can lower their premium, by suggesting changes in behaviour.

Insurtech, companies that focus on the customer and are constantly trying to develop digital solutions and systems that can simplify bureaucratic processes, have a huge advantage in the face of more traditional players. By rethinking the customer journey and starting with the customer, these new industry players are changing the rules of the game.

MEDIA

Challenges & Opportunities

Filipa Moreno | Digital Xperience Evangelist, Xpand IT

Results & Insights

Sérgio Viana | Partner & Digital Xperience Lead, Xpand IT

Insurance Industry Challenges

Alongside the numerous opportunities that the industry will need to take advantage of, the challenges it needs to address and tackle can be summed up in four different themes:

Consumer behaviour

Different generations of consumers have different behaviours and needs and insurers need to understand how different customers behave in order to offer them more relevant services to their unique needs.

Lack of trust

The relationship between consumer and insurers hasn’t been a good one for as long as insurers exist, and this is a lose-lose situation. For generations, this cycle has been a very accurate description of insurance, and it is time to break it.

Advanced Analytics

With advanced analytics and technology such as big data, insurers can have access to real-time data on their customers which opens up an opportunity to access their customers’ life, habits and health statistics.

Cyber Risk

The potential of cyber-attacks and threats is growing with every year that goes by. But this may also present an opportunity since individuals and businesses may be willing to buy insurance that covers losses that originate from cyber-attacks.

Digitalization is what a client does not see but feels. Digital is what a client sees and feels. If ‘digitalization’ equals to efficiency, digital is a synonym of experience. Because it is a relevant and emotional experience in life that makes a difference at the end of the day. And it is with this clear vision that we guide our strategic choices in technology with Médis.

Diogo Garrido - Head of Digital Delivery, Médis

Insurers can and should use technology to help improve their business models.

How can they achieve that?

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Ana PaneiroInsurance Industry Study 2020 | Insights