Driving Innovation in the Digital Ecosystem of Insurance
Crisis is often the catalyst for innovation and the recent pandemic was a driving force behind the rapid digitization of the insurance ecosystem. The drastic changes demanded during the pandemic accelerated the adoption of technology immensely and will have a lasting impact on the insurance industry.
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There has been an unprecedented shift in how brokerages and insurers conduct their business, with a new focus on digital connectivity.
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of insurance executives have or are developing a digital strategy.
82%
is how fast technology adoption accelerated for partially or fully digitized products.
6 Years
of insurers plan to invest in digital enhancements.
87%
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4 Forces Shaping the Future of the Insurance Industry
Plugging into a digital insurance ecosystem:
The Dynamic and Evolving Digital Ecosystem of Insurance
Consumers Demand Simple, Digital Experiences.
Traditional Business Models Are Evolving.
Big Brokerages and Up-and-Comers Have New Demands.
Rapid Technology Change Created a Data Obsession.
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The Impact of the Pandemic Caused Permanent Changes
Innovation and technology adoption are becoming industry standards, and a very important aspect of getting the most from tech is data.
Large brokerages continue to grow and new, start-up brokerages are on the rise. Expectations from big industry leaders and tech-savvy up-and-comers are driving faster technology adoption.
Acquisitions are happening daily where brick-and-mortar organizations are acquiring digital-first companies to distribute and service products across all customer touchpoints. Brokers increasingly need easier ways to reach customers and to distribute products.
Consumers’ expectations are set by experiences with giants like Google, Amazon and Apple. Traditional brokerages need to offer comparable digital experiences that allow customers to easily shop and buy online.
of insurance executives believe their organizations need a central intelligence hub to gain insights into business complexities.
93%
of insurance businesses and IT executives worldwide say technology has become an inextricable part of the human experience.
81%
of insurance executives report an accelerated pace of digital transformation in their organizations.
66%
is the 2021 YoY increase in Canadian mergers and acquisitions deal volume.
24%
is the 2021 YoY increase in Canadian mergers and acquisitions deal activity.
117%
is the number of global M&A deals in 2021. Up from 407 in 2020.
418
of insurance executives agree “insurers will increasingly engage in ecosystems that serve broad needs of customers, where insurance is only part of the customer value chain.”
79%
of baby boomers, 69% of Gen-X, 70% of millennials, and 76% of Gen-Z prioritize convenience over brand.
67%
of interactions took place online in 2020, compared to 42% in 2019.
60%
of customers expect an omnichannel experience for policy research and purchase.
70%
A more connected, robust digital insurance ecosystem opens the door to more possibilities for innovation in the insurance industry, making doing business easier, more intelligent, more productive and more valuable to all stakeholders.
Plug into the Digital Ecosystem to create simplicity and connectivity.
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of insurance professionals agree current business models will be unrecognizable in 5 years – ecosystems are the main change agent.
67%
of insurance executives state that multiparty systems will enable their ecosystems to forge a more resilient and adaptable foundation to create new value with their organization’s partners.
90%
Driving Innovation Through the Digital Ecosystem of Insurance
Brokerage-branded self-service portal/mobile app
Provides enhanced customer service by giving customers the freedom to access insurance information, documents and online bill pay on demand.
Data Lake technology
Makes it possible for brokers to bring their own data to the lake for a single source of data.
Open APIs
Allow for quicker and simpler integrations opening up possibilities for new and valuable partnerships.
Fully cloud-native software
Is available from any browser and offers a lower cost, easy and mobile way for employees to work without managing individual software deployments.
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The tech that makes it all possible:
Experiences outside our industry have set the standard for what we all expect when it comes to service. The insurance lifecycle is complex and confusing to consumers, so creating simpler customer experiences at each stage can give brokerages a competitive advantage.
Tech that creates simpler experiences
As a broker grows through broker consolidation, the role of technology grows too. When acquiring another company, brokerages need technology that accelerates the post-acquisition integration to expedite value creation.
Tech that makes analytics actionable
Analytics software identifies trends across the market that can inform business decisions and where to focus to build a more profitable book of business. With easy to access and actionable insights, brokerages can have more data-driven strategic conversations both in the brokerage and with customers to close more business.
Tech that accelerates M&A integration
Digital ecosystems need openness to flourish. At the core of brokerage operations is the management system with capabilities that allow staff to work faster and smarter, grow the business by finding the most profitable opportunities, and help brokers communicate effectively with insurer partners and customers.
Tech that is open and flexible
A digital ecosystem gives brokerages and insurers the connectivity they need to leverage innovative tech to solve problems, discover new insights, and compete in a new digital world, including:
Opportunities for Independent Brokers, Insurers and Insureds
Tech that is open and flexible
Tech that accelerates M&A integration
Tech that makes analytics actionable
Tech that creates simpler experiences
A digital ecosystem empowers brokers to provide simpler, modern experiences to customers, like the experiences they have with applications from other industries.
Empowers brokers and customers to work together.
A digital ecosystem unlocks the potential of data to help brokers uncover insights into the health of their business and compare it to the market.
Unlocks the potential of data.
A digital ecosystem creates choice via simple, flexible integrations that allow brokerages to choose the tech and partners that are right for their business.
Creates technology choice.
A digital ecosystem eliminates the broken processes within insurance today and replaces them with high value experiences that help brokers work better and faster across the entire insurance lifecycle.
Provides digital connectivity.
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Driving Innovation in the Digital Ecosystem of Insurance
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Accenture, October 12, 2020
The Insurer’s Guide to Digital Value Investing
Source: Saldanha, Kenneth. Jean-Francois Gasc.
Capgemini and Efma, 2021
World Insurance Report
Source:
McKinsey & Company, October 5, 2020
How Covid-19 Has Pushed Companies Over the Technology Tipping Point – and Transformed Business Forever
Source:
Accenture Technology Vision for Insurance 2020
We, The Post-Digital People
Source:
Source: Insurance Growth Report 2022,
Clyde & Co LLP, 2022
Source: Insurers Identify Ecosystems as a Source of Future Disruption, Accenture, May 21, 2019
Accenture Insurance Technology Vision 2021
Leaders Wanted – Masters of Change at a Moment of Truth,
Source:
Source: Top Insurance Industry Issues in 2021 Ecosystems, PWC, 2021
Salesforce, 2020
State of the Connected Consumer
Source:
Salesforce, 2020
State of the Connected Consumer
Source:
Capgemini and Efma, 2021
World Insurance Report
Source:
Accenture Insurance Technology Vision 2021
Leaders Wanted – Masters of Change at a Moment of Truth,
Source:
Accenture Insurance Technology Vision 2021
Leaders Wanted – Masters of Change at a Moment of Truth,
Source:
Source: 2022 Canadian M&A industry and market trends, PWC Canada, 2022
Source: 2022 Canadian M&A industry and market trends, PWC Canada, 2022
Source: Insurance Growth Report 2022,
Clyde & Co LLP, 2022
Source: Insurance Growth Report 2022,
Clyde & Co LLP, 2022