Digitization: what it means for the insurance industry and enterprise. Major trends: key elements and effects. SWOT analysis for a large enterprise.

1. The Fourth Industrial
Revolution:
What digitization means for the insurance industry
and the enterprise
 My Quest for Excellence

2. What’s inside
Digitization: Major Trends
Key Elements and their Effects
SWOT Analysis
Outlook
Resources
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3. Digitization: Major Trends
Big Data
InsurTech
Evolving Customer Preferences
Emerging Coverage Needs
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4. Big Data
• Exponential growth of available information
• Numerous and constantly increasing sources of
information
• The Internet of Things
Key Elements:
• Increased need for more efficient and effective
analytics models
• Demand for better information security
• Changing business models and processes
Key Effects:
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5. InsurTech
• Growing number of new market entrants
• New ways of conducting business
• Faster speed to market
• Value chain disruption
Key Elements:
• Heightened need to become more
technologically agile
• Cost reduction pressures
• Increase in M&As and other types of partnerships
Key Effects:
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6. Evolving Customer Preferences
•Demand for 24/7 interaction
•Seamless experience
•Faster, easier transactions
•More purchase and service options
•Customization and personalization of everything
Key Elements:
•Growing need for improved digital customer
engagement
•Wider distribution channels
•Increased focus on mass customization and modularity
Key Effects:
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7. Emerging Coverage Needs
• New technologically enhanced consumer goods
(driverless vehicles, asset tracking, etc.)
• New types of businesses to insure (digital
manufacturing, AI, drones, AirBnB, blockchain, etc.)
• Shift to prevention rather than pure insurance
Key Elements:
• Increasing emphasis on rapid product innovation
• Faster market response
• Focus on product modularity
Key Effects:
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8. External Trend: Digitization of Ecosystem
Internal Factors: Enterprise Characteristics
- Depth of industry knowledge and
experience
- Established market relationships
- Resource availability + experience
= higher quality products
- Large size = slower to change, not
as agile as smaller start ups
- Departmentalization =
disconnected systems, expertise
- Inexpedient rate of in-house
innovation
- Multiple communication channels
to leverage for digital customer
engagement
- Pioneer in the emerging coverage
needs
- Speed of innovation
- Intensifying market rivalry
- Lack of consumer loyalty paired
with low switching costs
SWOT
Analysis
Strengths
Opportunities
Weaknesses
Threats
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9. Outlook
Enterprise
• Improved technological agility
• Culture change
• New types of risks
• Focus on digital customer engagement
Employees
•Highly adaptable, better at dealing with ambiguity
•Rapidly expanding skillset
•Shorter learning curve
Agents
•Change of mindset
•Willingness to utilize new tools to build relationships
•“Acquire to retain” approach
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10. Resources
 Bain & Co.: Digitalization in Insurance: The Multibillion Dollar
Opportunity
 PropertyCasualty360: 21 emerging risks for the insurance industry and
the global economy
 McKinsey: Facing Digital Reality
 McKinsey: The Making of a Digital Insurer
 Vertafore.com: 4 Insurance Disruptors to Look Out for in 2016
 Vertafore.com: The 5 InsurTech Startups to Watch in 2017
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11. Thank you.
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