digital insurance innovations powering new business

Let's talk about your strategy for running a new business and insurance.

digital insurance innovations powering new business
digital insurance innovations powering new business

Accenture predicts 1 significant global growth in the insurance industry over the next five years. However, the revenue pool will change, and life insurers will need to innovate to gain a competitive advantage from not only product innovation, but innovation in distribution channels. How much opportunity is at stake? According to the Accenture report, about five percent of global premiums—about $280 billion—are estimated to be impacted by innovations in products ($140 billion) and changes to digital third-party platforms ($140 billion). Given these seismic changes, we see the following opportunities for you to grow your business:

1. Combined digital insurance and wellness platforms enhance customer experience and build trust

Data-driven digital insurance platforms can unlock insights that help you shape the experience each consumer expects. When infused with data-driven technology, products can present themselves to potential policyholders at just the right time – a far more effective approach than delivering them to consumers at random times. Health and wellness apps present a great opportunity for you to connect with current and potential policyholders when it matters most. It provides a better and less intrusive experience which also increases the winning chances for the new policyholders.

2. AI-optimized distribution channel

Whether you're looking for qualified agents or keeping and encouraging the ones you have, distribution management can improve top and bottom lines for both you and your agents. AI and Machine Learning are making major advances in persistence and delivery efficiency. Combined, these technologies can make your operations run more efficiently by optimizing product placement and reducing delivery costs. This, in turn, can allow you to offer attractive products, along with flexible pricing and compensation, helping you attract the best agents.

3. Relevant new products and services integrated with technology

Artificial intelligence allows life insurers to offer highly personalized coverage tied to each policyholder's specific circumstances, such as the stage of their life. Considering AI's ability to create such tough policies, it's no surprise that insurers of all sizes are investing heavily in it. According to Global Data Research, insurance companies will spend $3.4 billion on AI platforms worldwide by 2024. AI, combined with data analytics, can help you improve your product development and generate insights to market your new products. This is welcome news if you are planning to use customizable coverage to capture microsegment opportunities.

The good news is that you can quickly build or update your digital capabilities through ecosystem partnerships, which have become more accessible through the integration of APIs and digital insurance platforms. As these platforms become more intelligent and automated, you will be able to quickly uncover more opportunities to create innovative new products and services that can profitably grow your business.