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Exploring Digital Transformation at Dig|In 2017

May 17, 2017
By Kathleen Garlasco

shutterstock_604231253.jpgThe insurance industry is undergoing an incredible transformation. We’ve been saying this for some time, so we were really excited to attend an entire event dedicated to the changes occurring across the market. From new products, emerging technologies, digital distribution and InsurTech, to the emerging autonomous revolution, Dig|In: The Digital Future of Insurance, covered all of the hot topics impacting the insurance industry.

Read on to discover the top insights revealed at the event:

  • The absolute imperative: Right out of the gate, the conversation centered on the importance of the customer experience, with the opening keynote address by Jennifer Marshalek, SVP enterprise digital solutions, Nationwide. Later in the day, the folks at A.T. Kearney backed her up with some mind-blowing statistics on customer expectations. It seems that 76% of consumers expect organizations to understand their needs and 68% want them to “harmonize consumer experiences”. Why? Because digital is accelerating the pace of change, shaking up consumer expectations and the success of insurance market contenders. In 1996, two of the organizations offering direct-to-consumer distribution— GEICO and Progressive—didn’t even make the list of top ten insurers, but now rank in second and fifth place.[i] That’s some fast climbing.
  • Blueprinting digital success: David Connolly of EY pulled back the curtain on the future and gave us all a glimpse of the market to come. Surprisingly, it wasn’t shrouded in mysticism and suspense, but included instead some real-world, practical scenarios based on deep digital strength. Imagine a world where insurers provide more than just basic insurance products to consumers, or an era where telematics can identify accidents as they occur, allowing insurers to immediately offer assistance through digital channels and start a claim on the customer’s behalf.[ii]
  • IoT comes to insurance: Maybe you’ve seen the commercial where the baby, sitting in a restaurant and playing with Daddy’s phone, is actually turning the lights on and off at home, somewhere across town. Half of consumers are ready to purchase smart home devices.[iii] Fortunately, 74% of insurers understand the impact IoT will have on products and services and 83% see it as an important avenue to attract new customers, even if only 19% are ready to capitalize on the opportunity.[iv]
  • The autonomous revolution: We are currently holding at level two of the autonomous revolution and about 13 years from blast-off (at the fastest rate of adoption), where hands-off driving could be the norm.[v] The government is helping us out here, paving the road to autonomy with a set of mandated safety features—think back up cameras (all cars must have them as of 2018) and automatic braking (standard across 99% of the U.S. market by 2022).[vi] As autonomous vehicles eventually overtake the road, the auto insurance market is expected to contract by as much as 40%.[vii]

So, What’s the Wrap-up?

To us, it seemed the message was clear. The rapid evolution of technology has created a new consumer, who in turn is shaping a new insurance industry. Those insurers who can use digital to hone customer-centric products and distribution models will be the big prize winners.

So, seize the digital day, insurers. The market is yours. To learn more about the evolving insurance industry, download our thought leadership, Insurers, We've Entered A New Era.  <http://info.boltinc.com/insurers-weve-entered-a-new-era>


[i] Pei, Alyssa and Michael Freilich. The Next Wave of Digital Innovation. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[ii] Connolly, David. The Digital Insurer. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[iii] Lepine, Normand and Ian Davies. AIG’s Smart Home Address. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[iv] Lepine, Normand and Ian Davies. AIG’s Smart Home Address. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[v] Kuhr, James Esq. and Alex Timm. The Future of Cars, Driving & Insurance. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[vi] Kuhr, James Esq. and Alex Timm. The Future of Cars, Driving & Insurance. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

[vii] Kuhr, James Esq. and Alex Timm. The Future of Cars, Driving & Insurance. [PowerPoint Presentation]. Dig-In the Digital Future of Insurance, 11 May, 2017.

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