Rethinking the Insurance Business Model


Complete Video Transcript

0:07hello thank you for joining us today my name’s bob cummings
0:11amid a CP responsible for the insurance vertical
0:15a very happy to introduce Nicholas Michell
0:18today from Celent he’s a senior analyst in the insurance industry
0:22hello Nicholas thanks for joining us it’s a pleasure thank you
0:26Nicholas what are the trends that you’re seeing as you
0:29look out over the industry that will change the business and affect us in it.
0:33the main transit insurance industry’s Armenian focus around
0:36digital transformation so it means that interest companies try to move
0:40manual task to get useful information
0:44more automatically to their business so it means 32 process
0:48very important aspect second to do that they also tend to
0:52leverage more by technologies this is a very important aspect to
0:56and they also want to better understand their customers so it peter is a very
0:59important topic
1:00yeah I guess there’s a sort of the temptation to just put to a mobile app
1:05or something
1:06some initiative for a new web design or something in place and the not really
1:11think through the whole digital value chain I guess that’s what you’re seeing
1:14to rate you have to rethink it totally
1:16and actually what’s very important also insurance need to do is to understand
1:20with those initiatives those projects they should not make the same mistakes
1:25as the use to do
1:26in the past and that they should not be maintaining
1:29different applications different systems in the long run D 83 to try to find the
1:34best way
1:35to standardize the whole thing digital
1:38doesn’t just affect the front office it also goes back into the
1:41core areas what is it should change orchard companies think about when
1:46they’re looking at this integration also into their core systems
1:49to me digital transformation when it comes to do it the back
1:52and it me to in office and back-end systems
1:56is me near 82 how they can get
1:59valuable information about plans 36 at lower cost and
2:03faster so it means that straight to process automation of your business a
2:08underwriting decision is a very important aspect so it means that the
2:11need to really
2:12to focus on making think more efficient
2:15when doing there there on business so I guess the big word in the industry is
2:19really a
2:20innovation probably not just in insurance we see this also in the
2:24in other industries but insurance i think is in a different stage in that
2:29even in the insurance industry we’re seeing new topics come up with the
2:33to do with telematics all sorts of other innovative areas are you seeing that in
2:38your business as well the changes that are coming up or is innovation a big
2:42topic for your clients
2:43yes oh innovation is one of the main topic we have in our research and I and
2:48also in our discussion with insurance companies
2:50now innovation can be defined different ways according to mean ovation
2:54is a a way to rethink the business both insurance
2:58and of course in some respects a I would say telematics easy is a good example of
3:04I think insurance companies have to think out of the box and if they want to
3:07be innovative
3:08he’s with an out-of-the-box a mentality that they would reach some
3:12some innovative solutions and services insurance has always been a kind of a
3:16local business and is now only
3:18starting slowly to internationalize we’ve seen products cool across borders
3:22is a suspect to firm the differences in the regions from
3:26when you see the old industrialized economies compared to what you’re seeing
3:30in emerging markets
3:31big difference in in your studies now if we look at
3:36emerging market for instance any shot stands it too is next and also that he
3:41the I think the needs are different in a sense that many friends
3:45interest companies investing in those countries or trying to
3:49invest in new calling modern systems you know it too
3:52avoid any kind of mistake they have done in the past in other countries
3:56so the ID there in those countries is really to to
4:00to start taking jobs from the from the beginning of insurance has to really be
4:04people don’t by the right by their own gut reaction just buy insurance so
4:09I think the role of the agency will always be there but they themselves
4:12realize that their business model has to change they need to become more agile
4:16they need to cater to these Millennials
4:18and of course the insurance in the background well we try to help insurers
4:21to help their brokers cater to their customers as well
4:25arm so is this a trend you’re seeing the the around the world as well
4:29yeah of course I think the distribution channel is also a market that is
4:32going to evolve and and change I think there will always be
4:37asians they will always be brokers but maybe they will have to specialize more
4:41may be on the pro-business for brokers and for agents
4:45they would have maybe two to do the same I say in the banking industry a West
4:49industry where we’ve seen the for instance the emergence of family offices
4:53so I think for distribution channels in insurance we might find the same kinda
4:59a development going forward Nicholas it’s been a
5:02real pleasure talking to you I think these insights have been very valuable
5:06the really look forward to a future collaboration thank you
5:09thank you

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