The huge old industry, currently worth 3.3 trillion USD in OECD, is undeniably a major factor in the economy everywhere in the world. Its long history and traditions contribute to the stable and secure image the industry maintains and projects. Considering the main business they are in, it is logical that insurance companies want to be perceived as safe, traditional and rather conservative by the society and their customers.
At the same time, radical changes in the socio-economic and technological environment lead to the emergence of a new type of insurance customer – the digital native. These new customers are characterized by significantly different behaviour and expectations, which the traditional models in the insurance industry hardly satisfy. But all of this poses a great opportunity for the companies and decision makers who are willing to rethink the “how things have always been done” and consider the “how things should and can be done”. Why?
When the creation of a new insurance product is a matter of days, not months, …there are countless market opportunities to be explored.
New world, new insurance products
The socio-economic changes result in a demand for new insurance products. The challenge insurance companies are facing is the currently difficult, time consuming and expensive creation and management mechanisms for such products. Fortunately, there is clearly a way to address this issue – by digitalizing their business. And there are various ways to start this transition depending on the type and size of the insurance company.
An insurance company that runs its business on a next-generation, completely web-based and cloud-oriented information system and provides a 100% online insurance process to its customers can fully take advantage of the power, stability and flexibility of the new technologies. Besides driving sales of its existing portfolio higher, such an insurance company can decide to expand its sales volumes by offering new, innovative insurance products. When the creation of a new insurance product is a matter of days, not months, and its management is automated to the greatest possible extent, there are countless market opportunities to be explored.
In the new world and times, insurance products need to be created and launched quickly, be dynamically adapted to the ever changing market demands and optimized to the individual needs of the customer. Currently, insurance companies are being blocked to offer such type of service by outdated technology and models. The companies that are fastest to adopt a specialized information system from a next-generation that enables instead of limits innovations will remain or rapidly become market leaders.