Are insurance carriers failing to capitalize on data and AI? It's time for insurers to accept change and think like a startup.Download the full reportDownload the infographic
With non-insurers encroaching on the insurance value space, the main focus of carriers going forward has to be customer relevance. Insurers need to make the shift from reactive risk adjusters to proactive life companions for their customers. The key to that shift is data – data offers insurers the foundation for customer relevance.
Time for a change: Non-traditional players are encroaching on insurance territory with new business models that are blurring traditional industry boundaries. The burgeoning success of non-traditional players is largely a result of their relevance to customers in another market and now, by extension, in insurance. To compete, insurers need to reframe their value propositions by shifting from a "react and pay" mode to a "predict and prevent" approach.
As we revealed in a prior report, fundamentally, insurance has always been a data-driven business. Yet many insurers still view decision making as an art based on experience and intuition instead of a hard science based on data. Using data to increase customer relevance spans all parts of the insurance value chain.
Acquiring a data mindset: Results from our 2018 Data and AI survey reveal a group of high-performing insurers that recognize the power of data and are implementing approaches to harness it. These carriers excel at acquiring and harvesting data for insights. They use people, processes, and technology to support optimal data usage across the entire enterprise.
To stay relevant to customers and avoid being squeezed out, insurers need to reframe their value propositions and redefine their roles in the changing market. Read our report to discover how carriers can make the shift toward a data-driven culture and focus on long-term customer relevance.
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