Digital Changing Insurance Competitive Landscape

Digital touchpoints are becoming increasingly important for insurance customers, especially the emerging segments of Gen Y and tech-savvy, whose top Moments of Truth (MoTs) are defined by digital or digitally-enabled interactions. This demand for digital touchpoints is being met by a range of emerging InsurTech firms who are also able to surpass the experience provided by traditional insurance firms on some of the key Moments of Truth. This is leading to a changing competitive landscape in the insurance industry.

Digital Changing Insurance Competitive Landscape

Collaboration an Effective Way Forward

InsurTech firms were initially viewed as competitors to incumbents. However, the industry is now recognizing that these two types of firms are a natural fit as partners due to their complementary set of strengths and challenges. While customers perceive InsurTech firms as offering better value for money and timely and efficient service, incumbents carry a stronger advantage in security and brand perception. Thus, these two types of players are increasingly exploring various forms of collaboration, with partnership being the most preferred approach for insurers.

Collaboration an Effective Way Forward

Benefits of Collaboration

A closer look at the top Moments of Truth (MoTs) for Gen Y and tech-savvy customers reveals three underlying attributes that customers value in their insurance interactions: Convenience, Agility and Personalization (CAP). Customers want to conduct seamless transactions that are accessible anywhere and at any time. They also demand products and services that are highly customized to their needs and that rapidly adapt to changing situations. Insurers would be hard put to fulfill these demands without the power of digital, thus making it key for insurers to master digital collaboration in the new environment.

Benefits of Collaboration