The insurance companies that lead in the digital era won’t replace humans. Instead, insurance leaders will intertwine technology, people, and processes. BCG’s insurance consulting teams can help clients innovate at every step of the way.
The insurance industry is one of the least digitally mature industries. How can insurers close the gap—and serve customers better?
The key isn’t simply to embrace technology in insurance but to apply the right levers in the right ways. To help insurers do this, we combine expertise in insurance consulting with deep knowledge of new technologies and approaches. The key levers include:
BCG blends its expertise in insurance strategy consulting with a set of proprietary tools:
The Insurance Excellence Benchmark enables insurers to analyze their performance along key dimensions, including customer centricity, IT efficiency, FTE efficiency, and digital readiness. Using data from a wide variety of insurance companies, BCG’s benchmark helps insurers identify—and close—competitive gaps.
BCG’s Digital Acceleration Index helps insurers uncover their digital strengths and weaknesses—and see where they stand in relation to industry peers. The idea: to identify and prioritize focal points for improvement as well as to accelerate digital innovation in insurance.
The BCG insurance profit pools tool is a market-sizing and forecasting model for life, property and casualty (P&C), and health insurance. Covering roughly 100 countries, it enables insurers to determine what major market shifts they should prepare for and what geographic markets and product lines they should enter—or exit.
The Fintech Control Tower keeps tabs on innovation, disruption, challenges—and challengers—in the fintech ecosystem. It continuously monitors the latest trends in the industry and new entrants to the landscape. The tool provides deep dives into such emerging technologies as blockchain and new business models and processes.
Generali Italia, a leading insurance company, launched a digital transformation that lowered response time by 50%, reduced down time by 80%, and slashed its defect rate by a factor of ten.
Disaggregating companies’ total shareholder return is telling. Profitable growth is essential to sustaining long-term value creation because it contributes to each component of TSR.
US P&C insurers have performed well compared to their international counterparts. However, outperformance in the current macroeconomic environment demands a laser focus on profitable growth.