Digital Transformation in Insurance: Differences Across Continents

by Karen Monks,  Nicolas Michellod, September 12, 2014
Industry Trends
Asia-Pacific, EMEA, Latin America, North America

Abstract

The move from the physical to the virtual world, from person-to-person interaction toward person-to-machine or machine-to-machine, is changing the insurance industry. Integrating and coordinating among disparate and siloed delivery channels will be critical to satisfying ever-increasing customer expectations.

In the report Digital Transformation in Insurance: Differences Across Continents, Celent analyses the differences between insurers in Asia-Pacific, Europe Middle East and Africa, Latin America, and North America in terms of their digital transformation initiatives, investments, and programs.

Celent defines digital transformation as the strategy of transferring as many manual tasks as possible into digital activities. This strategy can be achieved in different ways, including:

  • Automating processes.
  • Selling products online.
  • Leveraging mobile devices and mobile technologies in general.
  • Dematerializing documents and communication materials.

Data gathering through all sorts of tools (and therefore, data management and analytics) plays an important role in digital transformation efforts.

This report details the results of our regional insurance CIO surveys, starting with an overview of how digital transformation is defined in insurance and how it is perceived to support strategic business objectives. The report then analyzes insurers’ priorities when investing in digital transformation initiatives and where insurers are in terms of these investments.

“Digital transformation is a major investment driver for insurance companies globally, and we think digitization programs will trigger further spending over the next 5 to 10 years.” says Karen Monks, a senior analyst within the Celent insurance practice and coauthor of the report.

“We believe that the next wave of digitization will be around gathering more data through connected devices in order to improve the basics of insurance,” adds Nicolas Michellod, a senior analyst within the Celent insurance practice and coauthor of the report.

This report contains 12 figures and three tables, and concludes with a dedicated section on mobile technologies and social networks.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Survey Approach and Participants

2

 

Celent Research Themes

2

 

2014 Regional CIO Surveys

2

 

Survey Participants

3

Defining Digital Transformation in Insurance

5

 

What Does Digitization Mean?

5

 

Digital Transformation to Support Business Objectives

6

Priorities and Investment in Digital Transformation

7

 

Digitization Top Priority

7

 

Digital Transformation Investment Progress

8

 

Investment in Analytics

9

Mobility and Social Network Focus

10

 

Mobility Use Cases and Benefit Perception

10

 

Importance of New Sources of Data to Insurers

11

Final Thoughts

14

 

Celent Perceived Benefits of Digitization

14

 

Implications for Insurers and Vendors

15

 

The Internet of Things, or the Next Wave of Digitization

15

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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