Digital Innovation in Insurance

Insurers are competing for new digital-native customers. To do so, they have to disrupt the status quo with new digital businesses that reinvent conventional insurance offerings. Digital innovation is key to winning customers and creating new revenue streams.

Much of the innovation in the insurance industry in recent years has been about creating new products that are delivered in old ways. Digital is the missing link. By combining the possibility of digital with the desire to innovate, insurers can create new revenue streams—serving new customers in areas that were previously inaccessible.

For example, let’s say a farmer in a developing nation could benefit from paying $3 per year for drought insurance that would pay out $100. The classic insurance models would not be able to serve him; it would cost more than $3 per year to collect his premium. But with fully automated microinsurance, the processing costs would be low enough for the carrier. It’s not just about cost, however. With digital innovation like this, carriers could have access to the next billion customers.

BCG Digital Ventures


Beyond the Hype: Digital Transformation in the Insurance Industry

Real digital transformation isn’t about a hot new mobile device or the latest app. It’s about using technology in innovative ways to achieve true customer focus across the entire organization.

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Innovation in Chinese Insurance

Digital players and leading insurers in China are using new technologies to connect with and serve customers. Insurers outside China should learn from these companies.

Watch a video in which BCG's Tjun Tang explains China's leading role.

Read more about innovation in Chinese insurance
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