Etude

Digitalization of the insurance industry: The multi-billion opportunity

Germany's P&C insurers and their customers will profit equally from digitalization.

Par Dr. Nikos Kotalakidis, Dr. Henrik Naujoks and Dr. Florian Mueller

First published on juin 02, 2017
min


Germany's P&C insurers and their customers will profit equally from digitalization: New technologies will revolutionize the customer experience, create new earnings potentials and lower costs. Insurance companies are already investing high amounts in the expansion of their digital services and products. However, they are still concentrating primarily on distribution and comprehensive online marketing innovations. Yet the full effects of digitalization will only be felt if this expansion also embraces the entire value-added chain as well as numerous other technologies. The internet of things, artificial intelligence and the ability to evaluate and use huge volumes of data will increasingly play a crucial role for insurance too. In its study “The digitalization of the insurance industry: The multi-billion opportunity”, the experts of Bain & Company and Google have documented the entire spectrum of digital technologies – from advanced analytics to virtual reality – and analyzed in detail 30 application examples that signal maximum value contribution. The result: The use of digital technologies represents a multi-billion opportunity for Germany's P&C insurance companies in their business with private and corporate customers. However, the only way for suppliers to exploit the full potentials of the new era is by driving this transformation towards a customer-focused organization.

Germany's P&C insurers and their customers will profit equally from digitalization: New technologies will revolutionize the customer experience, create new earnings potentials and lower costs.

Insurance companies are already investing high amounts in the expansion of their digital services and products. However, they are still concentrating primarily on distribution and comprehensive online marketing innovations. Yet the full effects of digitalization will only be felt if this expansion also embraces the entire value-added chain as well as numerous other technologies. The internet of things, artificial intelligence and the ability to evaluate and use huge volumes of data will increasingly play a crucial role for insurance too.

In its study “The digitalization of the insurance industry: The multi-billion opportunity”, the experts of Bain & Company and Google have documented the entire spectrum of digital technologies – from advanced analytics to virtual reality – and analyzed in detail 30 application examples that signal maximum value contribution.

The result: The use of digital technologies represents a multi-billion opportunity for Germany's P&C insurance companies in their business with private and corporate customers. However, the only way for suppliers to exploit the full potentials of the new era is by driving this transformation towards a customer-focused organization.