June 16, 2016
Last week we attended the Insurance Disrupted Conference to discuss how InsurTech and FinTech are changing the insurance and financial services industries. The one-day event hosted by the Silicon Valley Insurance Accelerator displayed some of the most creative minds and insightful ideas driving change in the insurance industry through emerging new technologies, products, and services. It was a pleasure to sponsor and speak on Digital Transformation, go-to-market strategies, and lessons that we have learned from working with our clients in the Insurance Industry.
Insurance is a vast landscape with many complex layers. Developing technologies and business models to truly disrupt the industry and drive true change can be approached from a number of angles. Despite the complexity and challenges, it was refreshing to hear consensus across a few themes from the speaker sessions and panels.
4 Key Takeaways from Insurance Disrupted:
Look at and leverage your data differently:
There was a clear consensus on the importance of data to drive change within insurance. There were many insightful discussions on Big Data vs Little Data. The discussions focused on the amount of data and time needed to analyze Big Data to make informed business decisions vs. leveraging Little Data which is good enough to make quick, iterative, incremental improvements. Regardless, looking at and leveraging your data differently is critical to the next key takeaway.
Providers that offer personalized services will gain a strategic advantage:
Regardless of how you shake it, consumers have high expectations for services and it’s up to insurance carriers to meet those ever changing expectations. Trov’s service exemplifies this perfectly. In their presentation, they discussed how they’re leveraging data to tailor their services and experience based on behavior, location, time and social activity. By leveraging data unique to each individual they are personalizing their insurance offering based on relevance first as opposed to risk first.
The transition from insurance product to service model has started:
The first wave of disruption within insurance is around the distribution in the value chain of a commoditized product. Insurtech start-ups focused on providing on-demand and usage based insurance service offerings are beginning to incrementally disrupt the traditional product based model. The second wave of disruption will likely focus on disrupting the core processes of insurance such as underwriting, claims, and creating new and innovative balance sheets.
Mobile will be at the center of it all:
Mobile technology has forever changed how we communicate and interact with each other and businesses. With new interaction patterns comes new sets of expectations from users that businesses must innovate to meet in order to attract or retain customers. Mobile is the catalyst that is driving the change to the business models of insurance and financial services and we don’t see that wavering in the future. The only question is, how quickly will the industry transform? Mobile and digital engagement will be at the forefront of users minds and must be a first class entity in insurance and financial services business models going forward. Insurance providers that can differentiate their services with best-in-class mobile experiences will gain a clear strategic advantage over the competition.
If you’d like to learn how we’re working with clients to deliver digital transformation that enhances user experience across all platforms download our Security First Insurance client story or visit our insurance page to learn more.