Digital Disruption : How Shall The Insurance Industry Conduct A Transformation
Accross almost all sectors and regions, companies face unprecedented disruption. The competitive advantages that once gave companies a defensible position their product lineup, scale, or legacy position are no longer as secure as they were. Some upstart with a newer and more agile operating model will start taking market share if it hasn't already. In the face of this volatility and complexity, most businesses must transform, meaning a comprehensive change in strategy, operating model, organization, people, and processes. More than ever before, transformation is an imperative. In fact, forward-thinking companies are launching preemptive transformations while they still hold a dominant market position, retooling themselves to stay ahead. The hard reality, homewer, its that many transformations fail. Some 75 percent fall short of their targets in terms of value generated, timing, or both.
Digitalization impacts are : 1.) Digitalization and globalization are blurring the lines between sectors as well as between traditional competitor groups. Technology is changing consumer behavior, empowering start-ups, making pricing more transparent, and reducing product life cycles. 2.) The traditional sources of competitive advantage market position, scale, or legacy are diminishing, and established operating models are becoming obsolete. Insurance seems to be the latest in a string of industries caught in the crosshairs on venture capital, needless paperwork, cumberstone purchasing process, dramatic claim settlement and overall old school lack are the reasons why insurance industry is a target for digital transformation. 4 components in insurance to be considered to set up transformation models are exposure, distribution, capital, operations. 5 things that insurance companies can do to compete & win as the industry transform are : 1.) Develop their own view of when and how technology will impact their companies. 2.) Develop new strategies to thrive as the industry transform. 3.) Leverage new technology in their current business as appropriate. 4.) Mitigate key risks by investing in cyber security and experimenting with new business models. 5.) Decide what role they will play in industry consolidation.
The concepts above was presented by Frederik Carlo Victorio Tassyam, B.bus, ANZIIF (Fellow), CIP. in General Business Environment subject with topic "Digital Disruption : How Shall The Insurance Industry Conduct A Transformation".
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