How the Insurance Industry is Embracing Digital Revolution
According to a recent study, more than half of insurance industry executives predict a moderate to major digital disruption in the near future. Though late adopters of digital revolution, the insurance industry has been exploring new organizational structures, business models, technologies, and even cultural initiatives.
The biggest names in the insurance industry are revamping their workplaces through digitization and strengthening their leadership by incorporating digital talent into their top ranks. Organizations are even adopting best practices of start-ups in order to better adapt to rapidly-changing dynamics, while trying to maintain the reliability of their tailored services, even on a large scale.
In short, here is what insurance firms are doing in the wake of the digital revolution:
To embrace a digital future, the board of directors of Berkshire Hathaway, has inducted top leaders from companies like Microsoft, Yahoo!, Pixar, and others. On the other hand, French multinational insurance entity, AXA, initiated a reverse mentoring program – a collaborative project to initiate digital transformation.
Digitally prolific employees were paired with senior executives, to explore established and emerging digital practices thus facilitating a mindset and cultural transformation.
Organizational Strategy Driven by Digital Business
Digitization has empowered customers and levelled the competitive playing field for insurance providers. Leaders realizing the need for greater customer-centricity are shifting perspective from mass production to mass personalization.
To achieve business success, it has become necessary to make innovation a part of organizational culture and this is possible by introducing digital in all aspects of business.
Upgrading Products and Services for the Digital Customer
The insurance industry is mostly dependent on the client-agent relationship, but the digital revolution has changed this. Insurance providers are increasingly reaching clients directly via various digital platforms.
With the middleman becoming redundant, providers are designing and offering products that are relevant to the specific requirements of the customer.
Digital Workplace Redefined
Economist Klaus Schwab elaborates, “When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace…the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.” These forces are quickly reshaping how we work.
Digital workplaces predicated on continuous learning via mobile and digital channels are gaining popularity. Chinese insurance provider, introduce a mobile-learning program designed not just for employee, but their partner-network as well.
Innovation through start-up Techniques
Established organizations are adopting tactics of the start-ups to keep pace with the times. New approaches to digitize risk management, sales channels, and loss minimization are becoming the norm.
Many companies are opening up their websites to invite improvement proposals for mobile, big data, social media and sponsorship. Some organizations have adopted the model of a venture capital companies, in an effort to construct and conquer new business models in the field of InsurTech.