For years, companies in the insurance industry have been slower to adopt new technologies than their counterparts in the banking or retail, accumulating some delay but also a series of obstacles in the race for the digital transformation : legacy systems rather dated, a relatively high number still carried out manually processes, substrates regulations and laws regarding privacy and data protection, and finally a general reluctance cultural innovation.
However, a little ‘for fear of falling foul of the so-called “digital disruption”, a bit’ for awareness and generational change, even insurance companies are now trying to turn the page , to the point that IDC is observing the start of a real and its transformation path. Some players have already initiated major strategic investments in innovative technologies to remain competitive in an increasingly wider market, others are now going through the first steps in this direction, in both cases, trying to optimize the operating costs of legacy environments to fund new initiatives digital.
Three are according to IDC the new investment priorities for companies in the insurance industry:
- revolutionizing the customer experience through digital platforms and next-generation back-office infrastructure capable of supporting processes, services and omni-experience products in line with the expectations of both customers and intermediaries;
- create new revenue streams with advanced connectivity services such as telematics and IoT (starting from the digital lifestyle areas, the connected car and home automation);
- last priority but not least, transform information into competitive advantage information with big data tools, predictive analytics and cognitive.
At European level, the majority of companies in the industry has therefore called intends to increase IT spending in 2017 between 5 and 10%, show a recent IDC survey conducted on a sample of 87 continental insurance, including Italy. A main part of the budget will remain allocated to the maintenance of existing systems, but the rest will be dedicated to innovation.
In this case, 40% of those surveyed by IDC European insurers adopted at least three of the four pillar of the Third platform at the base of the digital transformation projects (cloud, big data and analytics, mobility and social media) and the two least 35% . 11% of players in the European sector has already adopted all the four pillar of the Third Platform and against only 2% is currently not in use any of these technologies .
49% of companies in the European champion is already using solutions and services public cloud and another 10% will be added in 2017, says IDC. More or less the same trend emerges solutions for big data and analytics , already used by 46% of the European insurance and planning this year at an additional 10%.
As for the ‘ Internet of Things , IDC believes that this technology has already begun to distort the global industry, forcing companies to formulate new insurance models to meet the growing demand from the customers services, products and experiences highly customized. By 2019, IDC expects the new insurance policies based on consumption of IoT technologies account for 15% of the car insurance market and 10% of the home insurance market.
“Technology and IoT: what model” business is just the subtitle of the new event dedicated to the Italian insurance market that IDC organizes in Milan on June 15 next year . In its first year, the ‘ IDC Insurance Day 2017 aims to offer the insurance, financial intermediaries and a bancassurance in Italy a unique opportunity for learning experiences and guide decisions in the context of’ technological and digital innovation . The event will include analysts IDC Italy, prominent members of the Italian and European insurance sector, and experts of the leading technology vendors in the industry.