At its simplest, insurance provides financial protection for what we value and so insurers have differentiated themselves on the keenness of their pricing, their financial solidity and superior service – in practice a recipe for commoditization. Tackling legacy systems is the gateway to unlocking data across the entire value chain, including vast unstructured data housed in various systems which has long been accumulated without consistently harnessing it for business benefit. Successful players have applied technology to better segment, rate and price risk more accurately.
Maximizing corporate value requires delivering great customer experience, yet around the world we see many insurers and intermediaries still focused on product and channel silos rather than orientated around creating value for customers. Our research suggests the need greater technolgoy enablement. Such a transformation represents a massive change.
By partnering with leading retailers, insurers could gain invaluable customer behavior data to improve the accuracy of risk pricing.