Why Insurance Companies Need To Work On Their Digital Agendas

Too many insurance companies today think digital channels and eBusiness are about adding yet another distribution channel to existing ones. Moreover, they think of digital channels as being about cutting costs, but this is only part of the story. Their true value lies in the fact that customers love digital touchpoints (including mobile phones and tablets) because they perceive them as the gateway to better priced products and to greater convenience. Insurance companies should be brave enough to face the issues of dual pricing and cannibalization or somebody else will disrupt their business. In the Dutch market, for example, companies like Brand New Day and Inshared are combining Internet-only business models with aggressive marketing to challenge the revenue models of the incumbents. eBusiness and channel strategy executives should drive digitization within their companies and:

  •  Get organized and agile. Agility is the driving factor for next-generation insurance companies. The rapid pace of technology change will make the digital agenda and the corresponding organization the top priority for insurance companies in the coming years
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