The gearbox of change in the industry

One of the biggest disruptive industry forces, both locally and internationally, is technology and the advances in this field.

Along with this also comes the continued opportunity of Big Data. Technology evolves every day, and like any other industry, the insurance industry needs to keep up in order to stay ahead of competitors.

Disrupting practices

Technological advances are disrupting existing business practices, unsettling the old ways of how things are done, and highlighting the need for new processes and systems.

A major part of the change is driven by the connected customer. Consumers in the digital age are more connected; more informed and as a result of this are demanding more flexible solutions that meet their immediate and future needs. Ultimately, they are looking for additional value-add.

As a result it is this added value mantra that is driving the transformation in the insurance space, disrupting industry and driving innovation.

Active engagement

Insurers, and the entire insurance industry, need to start engaging more actively with their customers, not just at the claims stage, to drive value and promote customer retention.

A rapid change from faceless, computerised customer interaction to a more socially interactive relationship is needed to retain the connected customer.

Big Data benefit

On the other hand Big Data, and our ability to effectively use it, will further extract expense from the insurance delivery process and enable the insurance industry to do things differently.

Analysed data leads to better market segmentation, increased customer experience and customer centric product development.

With these advances in technology, a digital strategy is rapidly becoming a critical business tool. With 60% of insurers lacking a digital transformation strategy one needs to question whether the industry is ready to tackle change.

Embrace opportunities

Ultimately, insurers need to rise to the challenge and embrace opportunities that technological innovation and data analytics bring to ensure their future.

Another force driving change in the industry is the skills gap and the entry of new talent. The industry needs to capitalise on talent within the industry, and actively work to grow and invest in retaining this talent pool. The opportunity here lies in providing the necessary training and mentoring so that these entrants can grow and fulfil future leadership roles driving the industry forward.

Given the clear shift towards customer engagement and digitisation in the industry, players should also be mindful of new skills sets that will increasingly be required, specifically IT, social media marketing and innovation. Retaining and developing these new skill sets becomes a new and interesting challenge for the industry.