Three disruptive IT Trends in the insurance industry. Traditional business models in the insurance industry shake, because Start-ups are attacking you with new concepts. How to bypass well-established insurance companies with the trendsetters? Best of new products work together. Innovations as well as cost pressures will have an impact this year on IT the insurer.
The profit stands and falls with how a company data your business collects and uses. In the insurance business inventory data will bring already-cash benefits. These, however, remain largely untapped because the information are stored in data silos and not linked. This image of the private sector, signed the vocational training centre of the German insurance industry (BWV), in a study.
The challenge for insurers is to understand customers better. Otherwise, you will not reach with their Offers, the Generation Y. Between 1980 and 1999, the first digital Natives, the push is now on the market, and their share in the total population indicates, the Federal Statistical office with 22 percent, are Born. The so-called Millennials have very different ideas of a insurance and which differ from what an established provider of your customers are regular in the usual way. The digital Natives want to be fast and needs-oriented insurance.
From the what is going on in the insurance market and how customer interactions develop, three clear Trends can be derived. So InsurTechs, product innovations and IT-system optimization are the topics that the insurance companies have to effectively deal with, if you want to improve their market opportunities significantly.
From the financial industry as we know Start-ups (FinTechs), the new digital approaches and common market break-up mechanisms. For similar disruptive changes in the insurance world, the InsurTechs. The newcomers combine Insurance and Technology, by digitizing processes – irrespective of existing products, systems and structures. As a result, the pressure on the insurance industry, its processes, systems and opportunities to adapt and improve is strengthening.
Still a number of InsurTechs is manageable, but it is growing and will grow by 2017. The Start-ups try usually as a broker, offering insurance portals or platforms to Compare it to. As a business model, there is also the digital management, in which an algorithm analyzes the insurance situation of the customer and suggestions for improvement. A first digital health insurance company has now requested the Bafin (Federal financial Supervisory authority) approval. Some Start-ups specialize on certain products, such as mobile phone insurance. Just you hit a nerve with the young clientele.
Established insurance companies must prepare themselves, in order not to be of their younger customers cut off. Because InsurTechs support the demand-to-understand, needs-based insurance products: policies against Bicycle and mobile phone theft, for Skis, Snowboards and Smart Watches, instead of comprehensive household insurance, the cover may be, although in these cases also, however, for the Generation Y are incomprehensible and unattractive. In order to reach this target group, should insurers seek the cooperation with InsurTechs. You can learn from the successful methods of the Start-ups and together with you, attractive products for your customers. The InsurTechs to come, investors are always better: you have collected in 2016 around € 77 million of capital. Compared to the previous year flowed so more than Double that in the digital insurance market in Germany, calculates the digital insurance broker Finanzchef24 in a study.
Two types of product innovation that better respond to the needs of the customer. To a provider of packaging existing products are attractive, on the other hand, new insurance companies to appear quite. In the first category, time – and usage-based Car insurance, which focus on the actual use of the cars. Also, enhanced collaborations, for example with car manufacturers for individual policies, show that in established products large innovation potential.
The newcomers to the insurance industry, Cyber-insurance. At the beginning of the year, the first products came on the market, to Hacks and data losses. Not yet been clarified, however, how the risks can best be assessed, since a reliable Basis is difficult to establish. However, the use of technical AIDS such as Real-Time Analytics enterprise data leaks quickly identify and help assess the damage more reliable.
Driven by an extreme low interest rate environment, insurance companies are under pressure to reduce costs. Add to that the strong competition in certain segments such as Motor insurance. Two Trends that have an impact on the IT landscape: insurance companies are putting more focus on standard software. Especially in the inventory and claims Management many want to replace the self-made solutions from the past. However, caution is required: The default software needs to be integrated into the processes and IT systems to the insurance. In addition, individualized systems offer especially in the case of very similar products a market advantage. Therefore, standardization is: Yes, but with a sense of proportion.
Insurers can achieve cost efficiency by the second approach: The optimization of their IT Portfolios. Still insurance a part of hundreds of different systems. Many applications, however, no one – let along with other systems through a new standard software replace. A comprehensive IT portfolio management identified synergies that can be exploited. This relieves the IT Budget of the insurance, whereby the costs for the company as a whole developed positively.
The current IT Trends challenging insurers to digitize more. If you do not, you might threaten to soon be a scenario that the BWV-study outlined for 2030: Large, outside the industry, launched the IT platform provider create worlds of experience around the insurance relevant to the topics of mobility, health, retirement, and Smart Home. The today well-established insurers, the role would remain, insurance benefits zuzuliefern – especially to enterprise customers. In order to assert itself against disruptive challengers and to remain competitive, insurers will need to learn how to communicate your offers to the target groups, as well as their technology and adapt their products.