CHALLENGES AND OPPORTUNITIES ARISING FROM DIGITIALIZATION IN THE INSURANCE INDUSTRY
The customer journey and the processes involved have changed enormously in the insurance industry. According to recent research, more than two thirds of Germans can now imagine closing insurance contracts in all areas online and without the advice of an insurance broker. Traditional insurance companies are thus forced to rethink their marketing approaches and go-to-market strategies. Prospects are to be provided with relevant content on an ongoing basis right from the beginning of the increasingly digital customer journey. At later stages, clients increasingly demand superior digital products and services from established players in the insurance industry.
Today, the first step for prospective customers is to obtain information online, relying on comparison platforms and apps, in order to compare different offers and decide based on individual decision criteria. Comparison platforms such as CHECK24 are thus gaining enormously in importance and are changing information asymmetries in favor of consumers, leading to increased competition between established players in the insurance industry. Those who have the greatest visibility in the relevant target group in the digital market will be able to position themselves well and differentiate themselves from competitors in the long run.
Once a potential customer has decided on an insurance policy, he expects a digital and unique customer experience. If an insurance company cannot cater to this need, the customer relationship is highly endangered. Other challenges, such as strict regulations, the threat of new business models and InsurTechs, and intense competition, are increasing the pressure on companies to accelerate their digital transformation. At the same time, digitalization also offers great opportunities, for example in the area of Big Data analysis or the use of artificial intelligence. In this context, established insurance companies have an enormous advantage over InsurTechs due to large historical data sets. However, this advantage must be exploited with strategic foresight to create a sustainable competitive advantage.
The Greatest Challenges in the Digitalization of Insurance Services
- Modern customers are well informed and benefit from the high transparency of available offers. They obtain information from a wide variety of sources and make information-based and well-founded decisions
- The insurance market is developing at a fast pace and traditional business models have to be adapted quickly to new trends and developments in order to meet customer demands and strengthen the company's competitive position
- A multitude of digital innovations (e.g. artificial intelligence, cloud-based technologies and block chain) disrupt existing business models. An understanding of these technologies is a crucial factor to stay ahead of the competition
- More and more demanding target groups expect relevant and personalized content as well as seamless digital processes, which increasingly determine the success of insurance companies
- The digital transformation of insurance companies is not only aimed at a specific process, but encompasses a variety of structures, procedures and ultimately the entire business model. Digitalization must follow a holistic and structured approach in order to cover all dimensions of digital transformation successfully and sustainably
- The use of digital insurance products and services generates large amounts of data (BigData), which can be used to develop new digital business models through targeted analysis, business intelligence approaches and data science
The Digital Redesign of the Insurance Industry
Digital Acquisition Strategies
Enhance your digital visibility and reach through holistic digital marketing strategies
Re-Platforming
Engage and retain your customers through superior digital customer experience and digital products and services
Marketing Automation
Apply automated marketing processes to generate and nurture leads. Use our automated solutions to offer your prospects and customers the right content at the right time to optimize conversion rates
D2C Transaction Models
Use digital channels to address your target groups directly and think in terms of e-commerce
Omni-Channel Customer Experience
Leverage your customer data to deliver consistent and relevant messages to your target groups at any time and through any digital channel
Data-Backed Marketing & Retention Strategy
Increase the customer lifetime value over the entire customer lifecycle
Analytics & Reporting
Collect, analyze and visualize data to better understand customer needs and improve digital KPIs
Our Expertise
We help insurance leaders worldwide by providing data-based solutions. Our thorough industry knowledge and research capabilities enable our insurance clientele to reduce cost, improve relevance, and foster creative ideas. By implementing state-of-the-art digital measures, we aim to give our insurance clientele the necessary foresight to become industry pioneers.
Our international team has assisted >2,000 realized projects in digital strategy, digital operational excellence, data science, and transaction advisory services. With a team that speaks over 20 languages, and a 50% female-male ratio, we ensure both effective communication and representation throughout the advisory process.
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