Digital
Disruption
Digital disruption has arrived in the insurance
industry, with new technologies and business models
fundamentally transforming the entire value chain.
To an extent, the insurance industry has been
protected from rapid change by the inherent complexity
of the business. Unlike other industries being rapidly
Insurers respond to
digital disruption
with simpler products
and processes
disintermediated, the insurance industry retains a
core set of expertise-based competencies, such as risk
assessment and product manufacturing, that will be
extremely hard to automate. Moreover, insurance is
subject to heavy regulation as necessary to protect the
consumer, and this regulatory oversight acts as a barrier
to entry, delaying disruptive market entrants.
Nevertheless, digital disruption has emerged through
the actions of insurance companies themselves.
Aided by technology companies and Insuretech firms,
market leaders in the insurance industry are starting
to deliver personalized, dynamically-priced services
to an increasingly tech-savvy customer base. Pricing
and product features driven by artificial intelligence
and advanced analytics are enabling granular policies
By Rajatsubhra Pal,
Global Head – Insurance,
TCS Financial Solutions
designed for the individual.
Customers can access these policies through a
consistent omnichannel view across advisors, contact
centers, and self-service portals, in automated
experiences that generate higher satisfaction while
reducing back office costs.
Examples already in the marketplace include apps
that track risky driving, apps that allow parents to track
the driving habits of their teenage children, single-trip
auto insurance policies, and affordable pay-as-you-go
policies designed for underserved communities that are
accessible entirely from mobile phones.
7