Insurance in a digital world: the time is now · 2 Insurance in a digital world: the time is now EY...
Transcript of Insurance in a digital world: the time is now · 2 Insurance in a digital world: the time is now EY...
Insurance in a digital world: the time is nowEY Global Insurance Digital Survey 2013
2 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Insurance in a digital world: the time is now
Contents
Executive summary 4
01 802 28 03 36
41
04 44
56
Voice of the customer: time for insurers to rethink their relationships The journey toward greater customer centricity
distribution channel
Overview
1Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Introduction
Insurance in a digital world: the time is now
2 EY Global Insurance Digital Survey 2013
EY Global Insurance Digital Survey
Research approach and methodology
Scope
EuropeMiddle East
Target countries
UKSpainFrance
USCanadaMexicoChile
AustraliaHong KongThailandSingaporeMalaysiaIndonesiaJapanSouth KoreaIndia
South Africa
Other countries
GermanyIrelandItalyNetherlandsPolandTurkey
ArgentinaBrazilColombiaUruguay
ChinaTaiwanVietnamPhilippinesBangladesh
KenyaNamibiaNigeriaUAE
3
4 EY Global Insurance Digital Survey 2013
Executive summary
1
2
3
5EY Global Insurance Digital Survey 2013
Executive summary
4
5
6
7
EY Global Insurance Digital Survey 2013
Executive summary
6
EY Global Insurance Digital Survey 2013
Section 01
of key themes
7
8 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
1
79%
say they are “not setting the baseline” for digital or are “still learning.”
01
of key themes
9Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Digital strategy and leadership
Do you see your organization as a digital leader in your industry?
Do you have a business case for digital and is your investment integrated into the financial planning of the company?
Do you have a clear, well-executed implementation plan for your digital strategy?
Do you have the right operating model in place to deliver and run digital capabilities?
Has your digital strategy got support from senior management? Do they lead by example?
Customer experience
How does digital inform and support segmentation?
How do you use digital channels to attract prospective customers?
How do you manage and build brand loyalty through digital channels?
How do you reduce your cost to serve using digital channels?
How does digital support your Customer Value Management? (Including cross-sell, up-sell and retention efforts)
All average scores on scale 1-5
1 2 3 4 5
1 2 3 4 5
Exhibit 1: Current and target future state levels of digital maturity
Global current Global life current Global non-life current
Global target future Global life target future Global non-life target future
10 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
57%
have operating models that do not facilitate digital.
Most respondents say their digital
Over
89%don’t consider past interactions when recommending products or services to online customers.
2
11Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 2: Current and planned future spend on digital development
Expected increase in digital spend*
*Excluding “Don’t knows”
18% 38% 23% 8% 15%
9% 17% 36% 21% 16%
7% 8% 22% 39% 24%
Global
Current spend on digital*
68% 23% 8% 0%
0%-10% 10%-20% 20%-30% 30%+
0%-10% 10%-20% 20%-30% 30%+
Global
69% 28% 4% 0%Global life
79% 11% 10% 0%Global non-life
84% 9% 7% 0%Europe
52% 43% 5% 0%Asia-Pacific
61% 30% 10% 0%Americas
Over 1 year
Over 3 years
Over 5 years
Over 1 year
Over 3 years
Over 5 years
Over 1 year
Over 3 years
Over 5 years
Over 1 year
Over 3 years
Over 5 years
28% 46% 0% 0% 27%
5% 29% 29% 9% 27%
5% 8% 17% 33% 37%
Europe
2% 34% 55% 2% 7%
0% 2% 55% 34% 9%
0% 2% 26% 60% 12%
Asia-Pacific
21% 31% 19% 19% 10%
19% 14% 31% 27% 10%
10% 11% 22% 36% 21%
<5% 5%-10% 10%-25% 25%-50% 50%+
<5% 5%-10% 10%-25% 25%-50% 50%+
Americas
12 EY Global Insurance Digital Survey 2013
67%
implement digital as part of business-as- usual activity.
68%
believe they have delivered some easy quick wins but not made transformational progress.
3
EY Global Insurance Digital Survey 2013
13
14 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
68%
of life companies say internal company structure or culture constraints is the key challenge they face in delivering their digital strategy.
Exhibit 3: Top inhibitors of digital growth in insurance market
Global Global life Global non-life
Legacy technology constraints80%75%88%
64%66%72%
40%41%45%
33%34%30%
32%29%29%
24%24%17%
19%23%12%
Slow pace of delivery by insurers
Intermediary/agent channel strength or resistance
Lack of a compelling business case
Regulatory restrictions/environment impeding digital growth
Perceived customer/data security issues
Insufficient consumer demand
15Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 4: Key challenges faced by companies in delivering their digital strategy
Global life Global non-life
Lack of methodology framework34% 25%
Developing a clear technology strategy44% 34%
Lack of skills/difficult to find expertise50% 45%
Building solutions with flexibility41% 42%
Channel conflict46% 44%
Systems issues in implementation65%63%
Lack of resources (time and budget)47% 43%
No business case for investment21% 23%
68% 64%Internal company structure or culture constraints
61% 50%Integrating digital with other distribution channels
40% 29%Designing new digital offerings effectively for customers
63% 68%Creating a culture of rapid innovation and development
52% 47%Gaining internal management buy-in and investment
Shown in descending order for Global life sector
16 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
4 It’s all about retention through
Voice of the customer survey
Exhibit 5: Drivers of companies’ digital strategy
Enriching the customer experience32%
Global (life and non-life)
Regaining more direct control of the customer relationship
20%
Attracting prospective customers and increasing sales
Increasing internal efficiencies
Other5%
2%
3%
5%
9%
9%
14%
Reducing cost to serve customers and intermediaries
Managing and building brand
Competitors are offering it and we want to keep up
Increasing up-sell and cross-sell
17Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Retail chain stocks up on digital
18 EY Global Insurance Digital Survey 2013
AirAsia’s owner takes off in insurance
6 its
Only 46%
of life companies believe that “customers will ultimately leave us” if they fail to embrace digital.
5 Distributors and agents are digital
19
20 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 6: Agents use of digital — increase in importance over next three years
These are not % responses; they are weighted scores based on respondents’ ranking in order of importance.
Improve efficiency and quality of interactions with customers
4.09
2.68
Reduce risk and improve controls
1.49
0.40
Increase process efficiencies
2.64
2.33
Collect, pay and reconcile commissions
1.02
0.81
Expose/offer self-service capability to customers
2.39
1.36
Capture quantitative and qualitative customer information
0.98
0.53
Using social media
0.71
0.65
Reporting and tracking — sales pipeline, policy setup, etc.
0.78
0.91
Providing education/general advice to market, e.g., blog
0.52
0.27
Delivering or receiving training/knowledge
0.24
1.29
Global life Global non-life
Shown in descending order for global life sector
21Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Supporting agents’ digital strategies
6 Analytics are critical to
Discovery Life leverages wealth of consumer data
22 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
7
Exhibit 7: Online vs. mobile digital functionality Online Mobile
Provide information about our company/products 92%47%
Provide customer self-service facilities 74%40%
Provide quote 72%43%
Transact/purchase online 66%35%
Educate our customers about brand values 63%30%
Allow customers to submit complaints 57%21%
Facilitate online/virtual communication 40%17%
Enable customers to submit and process claims online
39%23%
Request and process settlement/payment online 39%26%
Contribute to product development and market research
34%15%
Enable customers to digitally record and document claims
29%27%
Provide financial advice 18%9%
23Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Only 43%
of insurers provide mobile quotes compared to 72% who provide these online.
Mobile shopping for time-strapped consumers
Friendsurance making insurance social again
EY Global Insurance Digital Survey 201324
25EY Global Insurance Digital Survey 2013
EY Global Insurance Digital Survey 201326
EY Global Insurance Digital Survey 2013
How should insurers respond? Section 02
How should insurers respond?
27
28 EY Global Insurance Digital Survey 2013
Step 1:
02
How should insurers respond?
EY Global Insurance Digital Survey 2013
How should insurers respond?
29
30 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?
Build analytics capabilities in step
Mobile Banking: Financial Services Meet the Electronic Wallet
Exhibit 8: The digital “virtuous circle” — non-linear business case
Data analysis and segmentation capability
Digital distribution/customer access
Digital offerings/capabilities
Increased productivity/reduced cost to serve
Increased sales
More relevant tailored offerings
Better experience = customers more willing to share data
More customer insight (data)
Increased customer retention Increased customer
satisfaction
Digital service tools/better customer experience
31Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?
Social media in insurance – how to interact better with your customers,
organization
focus on becoming an innovative company
Step 2:
The writing is on the wall for Australian insurer Youi
32 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?
and innovation
Mutual innovation for NewCo customers
33Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?
Exhibit 9: Creating a digital culture
01 Leadership alignmentAlignment of leadership around a compelling story through the use of tools, methods and approaches that will form the DNA of the future ways of work and digital culture (using video, animates and social media)
02 Cultural alignmentDefining the cultural shifts necessary for the business to achieve its purpose and creating interventions to achieve this alignment
03 Collaborative workingCreating the physical, online and cognitive (methods, tools, approaches) environments to support the business and embed cultural change
04 EnablementDelivering the training, education and development opportunities necessary to shift the ways of working, as well as undertake development activity on specific topics pertaining to cultural change, through the use of the collaborative working environments (03) — thinking and learning by doing
05 MomentumEstablishing the performance management systems to reinforce the new ways of working and sustain the collaborative environment
01 02 03 04 05
EY Global Insurance Digital Survey 2013
How should insurers respond?
34
EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business developmentSection 03
How EY assists clients’ digital business development
35
36 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
03
How EY assists clients’ digital business development
Credential
Digital operating model
Credential
Innovation Center
37Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development
Exhibit 10: EY Digital Strategy Canvas
Digital strategy
VisionMission
statement
Corporate strategy
Financial objectives
Customer objectives
Digital initiatives
Supplier selection
Road map
Benefits model
Prioritization
Supplier shortlist
Digital road map
Digital governance frameworkCustomer-
driven innovation
Information& insight
Partners & ecosystem
Benefits realization
Risk & compliance
Businessprocesses
Enablingcapabilities
People & operating
model
Technology& tools
Customer proposition & strategy
Intentional customer
experience
Brand
Research & insight
Customer journeys
Segmentation
Customer strategy
Personas
Visualization
Program
Digital ambition
Program managemen
t
Our Digital Strategy Canvas is a visual representation of the EY method for digital strategy projects. It represents all the key elements that need to exist and be in alignment to create a robust and implementable digital strategy. The model is not linear; each dial informs and shapes the other as the project progresses.
38 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development
Credential
Digital governance
Credential
Digital analytics strategy and roadmap
39Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development
Strategy
Technology and
Analytics
Understanding the
Distribution
Culture
Mobile
EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development
40
41EY Global Insurance Digital Survey 2013
Conclusion
EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development
42
EY Global Insurance Digital Survey 2013
Section 04
regional highlights
43
44 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
around the barriers to digital progress and future investment than their global peers. One reason may be that the region’s developing and emerging nations are at an earlier stage in their digital journey. Although Australia aligns more with the digitally developed European and US markets, it is outweighed by the large number of Asian countries included in
representative of Asia.
04
regional highlights
45Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Only 7%
of regional respondents see “regaining more direct control of the customer relationship” as a driver, compared to 20% globally.
46 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
AmericasThe scope of the Americas region in our survey comprises a diverse range of countries. For example, direct insurance and direct to consumer marketing are still only just emerging in Latin America but much more developed in North America. Nonetheless, the region has much in common across many indicators of digital advancement, from budgetary spending, to customer engagement.
Legacy technology constraints are the top
47Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
57%use online customer engagement in product development and market research versus 34% internationally.
48 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Europe Our results show Europe lagging behind other regions in current capability and immediate investment plans, with insurers rating themselves at the lowest digital maturity level. In many industry sectors
services, the customer services environment and loyalty management are well-developed. Our discussions with European insurers have
services to set a benchmark of where they should aim. Insurers may therefore be judging themselves against a higher benchmark than perhaps their peers in other global markets.
49Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Europeans are spending less on digital in
European insurers perceive
76%
rate themselves as basic in using digital to reduce costs to serve customers, compared with 55% globally.
50 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 11: Top inhibitors of digital growth in the insurance market, by region
Global
Americas Europe
Legacy technology constraints
Slow pace of delivery by insurers
Intermediary/agent channel strength or resistance
Lack of a compelling business case
Regulatory restrictions/environment impeding digital growth
Perceived customer/data security issues
Insufficient consumer demand
80%63%96%86%
64%35%76%93%
40%34%41%48%
33%41%32%26%
32%44%20%29%
24%40%19%7%
19%33%13%7%
51Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 12: Online vs. mobile digital functionality, by region
Provide quote
72%43%
Transact/purchase
Provide self-service facility
Online claims
Global
83%44%Asia-Pacific
80%53%Americas
48%30%Europe
66%35%Global
70%41%Asia-Pacific
76%44%Americas
48%16%Europe
74%40%Global
69%37%Asia-Pacific
83%50%Americas
70%34%Europe
39%23%Global
45%32%Asia-Pacific
50%35%Americas
32%21%Europe
Online Mobile
52 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Exhibit 13: Current and target future state levels of digital maturity, by region
Digital strategy and leadership
Do you see your organization as a digital leader in your industry?
Do you have a business case for digital and is your investment integrated into the financial planning of the company?
Do you have a clear, well-executed implementation plan for your digital strategy?
Do you have the right operating model in place to deliver and run digital capabilities?
Has your digital strategy got support from senior management? Do they lead by example?
Customer experience
How does digital inform and support segmentation?
How do you use digital channels to attract prospective customers?
How do you manage and build brand loyalty through digital channels?
How do you reduce your cost to serve using digital channels?
How does digital support your Customer Value Management? (Including cross-sell, up-sell and retention efforts)
All average scores on scale 1-5
1 2 3 4 5
1 2 3 4 5
Global current Europe current
Americas current
Global target future Europe target future
Americas target future
53Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Additional reading from EY
Additional reading from EY
EY Global Insurance Digital Survey 201354
Additional reading from EY
EY Global Insurance Digital Survey 2013
55
56 EY Global Insurance Digital Survey 2013
Shona Burns
Christine Delany
May Knight and Russel Lok
Contacts
57Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Contacts
58 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Contacts
About EY
ey.com
EY