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Differentiating in a Radically Changing Marketplace

The insurance industry is facing major technology changes that can make the consumer experience simpler and more intuitive. These changes create major growth opportunities for insurers and innovative third-party providers that will be able to adopt an agile business model. Insurers that reinvent their consumer engagement models, digitize distribution and operations, and embrace big-data analytics will lead the industry.

Insurance at a Tipping Point

BCG’s Pia Tischhauser discusses how crucial it is for insurance companies to offer products that will only add true value. To do so, they need to become more customer centric—and finally go fully digital.

Staying Relevant in a Digital Future

While some aspects of technological change are shared across industries, several challenges are specific to insurance. In a joint, two-part research analysis conducted with Morgan Stanley, BCG identified several areas insurers should watch.

  • Consumer Engagement. Our global survey suggests that . They would like a simpler, more direct relationship with their insurer.

  • Digitization. “Digitally born” insurance models can gain an advantage over traditional models, reducing expenses by as much as 10% of premiums and claims by as much as 8%.

  • Disruption. The Internet of Things, big data, and the ability to access broader ecosystems will have a dramatic impact on the insurance industry along the entire value chain. New models will potentially change the nature of risk assessment and management, as well as the consumer engagement model.

  • Investment. There are opportunities for technology players as insurers invest in digitization. The major challenges, we think, will be in consumer channels and new data sources. Investment will also be needed in core systems to enable digitization and cut costs. Vendors exposed to these areas are expected to have strong growth.

  • Ecosystems. We believe growing consumer expectations for tailored and sophisticated products, and the rapid adoption of technology, such as the Internet of Things and big data, will drive the need for insurers to cooperate with other businesses to deliver novel products and services.

Winning Customers by Becoming a Digital Insurer

Customers are asking for simpler products, processes, and access to their insurance company, and digitization can be a large part of the answer. Christopher Freese explains how BCG works with companies to start their digitization journey—and brings a quick uplift to customer satisfaction.

Fortifying Insurers' Defenses in an Era of Cyberrisk

Because of digitization, increasingly sophisticated hacker techniques, and other factors, insurance companies must rethink their cyberrisk management model. It has become crucial for insurers to treat cyberrisk in much the same way that they treat traditional insurance risk—by defining the level of exposure they are comfortable with and prioritizing investments accordingly.

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Perspectives in Insurance

The insurance industry is feeling the pressure from a changing economic landscape, increased competition, more restrictive regulations, and other issues—all of which present tremendous growth opportunities. This collection of articles contains valuable insights into how companies can rethink their approach.

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The Growing Importance of Pricing

Because of these five factors upending the insurance market, companies have got to update, upgrade, and transform their pricing capabilities in order to maintain a competitive edge.

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Putting Customers at the Center

Want to boost customer satisfaction? Take a tip from today’s technology leaders and offer personalized interactions, faster response times, and greater transparency.

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