Digital Disruption

06 January, 2015 by Niels Nuyens | Strategy

Digitization has disrupted the insurance industry and the mobile trend is fuelling customer expectations. Deloitte benchmarked the web, mobile and social capabilities of 30 NL and International insurers, and identifies opportunities for growth in Mobile technology trends.
Digital Disruption

Continuous digital disruption in the insurance value chain is not a possibility, it’s a certainty. Digital has already changed the rules of the game in the insurance marketplace. Consumer behaviour has changed fundamentally with continued growth of the use of digital channels over traditional intermediaries and banks, increased use of online aggregators and strong growth in sharing consumer experiences through social media. Moreover, customers are influenced by a constant flow of new or enhanced digital experiences in other industries. While insurance needs may have stayed the same, customers have become more demanding with regards to their digital expectations for Insurance.

Our digital Insurance benchmark shows that Dutch insurers have made good progress in supporting basic internet sales and service transactions and plugging into social networks. Most insurers however struggle with their mobile capabilities as only a few offer more than basic functionalities in the areas of claim notification. With the accelerated adoption rates of new technologies by consumers, NL Insurance companies need to speed up in increasing their digital capabilities to continue to meet the constantly increasing needs of online and especially mobile Insurance consumers. However quickly replicating internet capabilities to mobile will be costly and most likely have low chances of success as it will only create limited differentiation compared with others insurers.  Successful use of mobile in an Insurance context requires more creativity amongst others caused by the typical low interaction rate between Insurer and Consumers.

Adopting trends like gamification, telematics and the internet of things offer opportunities to create truly differentiating value propositions, which will enable insurers to regain customer loyalty and at the same time increase profitability. The insurers that have the vision, courage and endurance to take a step forward in the digital arena will be the ones that will truly reap the benefits of the digital megatrend.

For more information, download the whitepaper