1 September 2017, 07:00
Insurers will be required to implement cognitive technologies to deal with the consumer. They will have to ask the following four gestures that they will not regret, » says the giant IBM, in its study, Insurance 2025: Reducing Rick in a Uncertain Future.
Christian Bieck, leader of the IBM Institute for Business Global Insurance, says that insurers have always seen technology as a tool to cope with the changes in the market and regulatory constraints. More recently, they have integrated the technology into their business models. Mr. Bieck says that technology is a way for them to extend the insurance beyond the current frontiers of the industry.
So, what will be the impact of autonomous cars and refrigerators connected to the insurance industry when their use will become common ? «It remains uncertain, said Mr. Bieck. Technology cognitive will have a big impact. It is difficult to predict how insurers will be able to implement everything. Even if their degree of adoption in the industry is unknown, it is expected, however, that the insurers who will benefit from cognitive technology and the Internet of things to have a competitive advantage. «
IBM has identified four actions that insurers must take to cope with the changes of tomorrow. IBM identifies as » the actions that they will not regret «.
Embrace the chop
For IBM, the insurers have every incentive to build a war chest. They will be cannibalisant. IBM uses this term in reference to the extensive internal work that the insurers will have to make in their system.
«As the products go to service models, insurers will need to deconstruct and subdivide their legacy systems (legacy systems) to support the competitiveness of the costs. They will have to invest in hybrid systems, in the cloud, that enable the manipulation of flexible products, but also a wide range of scenarios. These systems will enable them at any time to enter new markets and experiment at low cost «, one can read in the IBM study.
In his study, IBM also made a review of the scenarios that await insurers. The first is the economy of the hive, which, in insurance, is reflected in the insurance peer-to-peer. If this scenario turns out to be, it will have a disruptive impact (disruptive) very strong on the insurers, believes IBM. The distribution of the insurance would be day-to-day.
In the scenario of the central intelligence, the insurers would act primarily as a guardian of consumer data, managing their partnership with different suppliers. In the Internet of everything, the insurance is sold especially in groups and in very specific conditions. For example, a teenager who takes to the road could be covered for up to 9 hours in the evening. To be covered beyond, it must pass a breathalyzer.
The last scenario is the most suitable to insurers, believes IBM. It is that of survival of the fastest. It implies that the insurers will make use of the new technologies, without which these models take the not. This scenario requires, however, a huge concentration of the industry, and its number of players.
Cultivate partnerships and build low beam
Second gesture that the insurers will not regret according to IBM : prepare ecosystem partners. «Insurers will have to work together, both to collect data, but also to participate significantly to conversations about risk. To have their say in structural changes in the market, it will be essential for them to cultivate partnerships and to subscribe to the ecosystems of partners adjacent in the segments in which they want to conduct business, » says IBM in its study.
For his third board, IBM recommends insurers to build low-beam headlights. «Know where you have the need to be a leader. You will then need to link together the technology, capabilities, and investments in products. Make use of analytics in combination with a multitude of data sources to understand where lies the way of the future. Understand the consumer behavior, the parameters of risk and its influences. Be on the lookout for new forms and new sources of data on the client. «
And finally, IBM believes it is essential for insurers to embrace innovation. «Create a culture that superimposes the innovation. Design processes that enable innovation. The leaders are proactive because they have created the structural flexibility which makes the action fast. Standardize your processes for innovation, by centralizing the funding and investment models that will deliver projects quickly, with the right partners. «