Transforma Insights’ Insurance sector report discusses the impact of digital transformation technologies in the Insurance industry and includes analysis of Insurance sector Case Studies drawn from Transforma Insights’ Best Practice & Vendor Selection Database.
Transforma Insights’ Insurance sector report discusses the impact of digital transformation technologies in the Insurance industry and includes analysis of Insurance sector Case Studies drawn from Transforma Insights’ Best Practice & Vendor Selection Database.
The Insurance sector is amongst the most susceptible to digital transformation-enabled change of all industries. At the core of insurance is the concept of risk-transfer (from an insured party to an insurance carrier), and the availability of more high-quality information about a risk, and enhanced analysis of that information, can result in more accurate pricing and a more efficient market overall. Concepts such as IoT allow insurance offerings to be extended to support new propositions (such as insurance for servitised assets) and enhance services in already-established markets (with, for instance, usage-based insurance and new types of parametric insurance). Artificial Intelligence can play a significant role both in automating processes (for instance claims processing), and also in terms of assessing risks at a level of granularity that might not have been feasible before.
Overall, we have identified nine key domains of change in the insurance sector, each of which is discussed in more detail in this report. The list comprises:
Claims Automation, which considers the digital transformation of claims processing using a range of technologies.
Associated Services considers the augmentation of a core insurance offering with associated services such as connected monitoring devices or monitoring services, potentially in association with a channel partner.
Parametric Insurance, which is an emerging type of insurance that offers pre-defined pay-outs based on trigger events, rather than the more traditional approach which is to compensate for actual losses.
Usage-Based (Automotive) Insurance tracks driving behaviour via telematics devices installed in the insured vehicle and potentially rewards users with a subsidised premium, based on their driving behaviour.
Improved Front Office Operations, which has been a focus of the insurance industry for many years and has now evolved to use AI (and RPA) to improve operations.
Improved Analytics, including the analysis of better information and improved analyses applied to available information.
Servitised Asset Insurance covers a range of opportunities related to servitised assets, including policies covering repairs for those assets, and also insurance for consequential losses in the case that servitised assets malfunction.
Supply Chain Insurance considers opportunities related to insurance services for ‘connected’ supply chains and also related risk-management services.
Smart Contracts exist to ease the contracting process between an entity requiring insurance and an insurance carrier.
A recent blogpost summarises some of the key findings: 'Nine key domains of change in the Insurance sector'
