Will The Digital Transformation in Insurance Happen Fast Enough?
In the era of the Digital Economy, the needs and demands of insurance customers are rapidly evolving. Digital transformation has spread quickly, customer behaviours have changed radically, and the regulatory environment is getting more complex by the day.
There’s a growing gap between products and service levels provided by traditional insurance companies, and what today’s customers actually need. This creates market opportunities for new entrants, and it puts more established players at risk of disruption.
The Future at Lloyd’s Prospectus presents more questions than answers according to our CEO James Smith. This whitepaper outlines key considerations for the insurance sector as it transforms for enduring relevance in the digital economy.
Earlier this month, Lloyd’s of London announced a set of bold new strategies for the digital transformation of insurance. These initiatives could revolutionise the Lloyd’s insurance market, making it more adaptive and agile to meet evolving needs in the digital economy.
The ideas are sound, but they don’t go far enough in themselves. As Robin Merttens said so eloquently in his keynote at the recent InsTech event, what the Future at Lloyd’s Prospectus didn’t say was more telling that what it did say. The sector needs to change, and it needs to learn to innovate: a ‘do tank’ might be more useful than a ‘think tank’.
So, while it’s great that Lloyd’s is inviting feedback on the Prospectus, we need to be mindful that simply talking about transformation won’t drive change. Sooner or later, you have to roll up your sleeves and get on with it. And it should be sooner rather than later. But that’s where things start to get a bit more complicated.