Skip to main content

Exploring the Insurance Industry Digital Transformation

Legacy insurance sector CIOs must embrace the innovation and disruption potential of technology start-ups to complement their own digital insurance strategies, according to the latest worldwide market study by Gartner.

Sixty-four percent of the world's 25 largest insurance companies have already invested directly or indirectly -- via their venture capital arms -- in what Gartner refers to as the emerging Insurtech start-up market.

Gartner predicts that 80 percent of life, property and casualty insurers globally will partner with or acquire Insurtech companies by the end of 2018. Analysts believe that these pioneers can stimulate or accelerate innovation among incumbent industry players, and complement existing digital transformation strategies.

Insuretech Market Development Opportunities

"Gartner has seen growing interest among insurance business and IT leaders in collaborating with Insurtechs or making them part of their overall innovation policies, but most insurance CIOs are not familiar with these companies or their value propositions," said Juergen Weiss, managing vice president at Gartner.

Insurtechs are companies that are in their early stages of operation; that drive innovation across the insurance value chain by leveraging new technologies, user interfaces, business processes or business models; and that leverage different forms of funding.

According to the Gartner assessment, the number of technology start-ups in the insurance industry has more than doubled globally during the last three years. Digital customer engagement, mobile insurance management and analytics are the most common technology focus areas of Insurtechs.

Furthermore, 60 percent of Insurtech firms have been founded within just the last three years, and two-thirds of them have their headquarters in the U.S. market.

EMEA is the second-most important region for Insurtechs, with 27 percent having their headquarters there -- mainly within Germany and the UK market.

In Asia, countries such as Singapore and China  -- mainly in the Hong Kong and Shanghai markets -- have begun to promote the development of a local Insurtech start-up ecosystem.

Digital Transformation Outlook for Insurers

Digitalization for top-line growth is one of the highest strategic priorities for insurance sector CEOs, according to the latest Gartner survey. However, the vast majority of CIOs in the sector are still struggling to plan and implement a substantive digital transformation agenda.

That said, only 12 percent of insurance sector senior business or IT leaders consider their organizations to be 'digitally progressive', while the vast majority believe that their organizations are digital beginners or intermediate practitioners. This scenario must change, in order to achieve desired outcomes.

Gartner reports that the top reasons include a lack of agility caused by legacy IT systems and processes, flat IT budgets within the insurance sector -- plus, a shortage of the digital transformation skills or the DevOps delivery models to create new and innovative business models.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d