Nine in 10 Insurance Leaders in Europe Say Customer Experience is the Top Driver of Digital Transformation
Demand for improved customer experience is the top driver of digital transformation in Europe’s insurance industry, but with growing digitalization, insurers report increasing security vulnerabilities, according to the results of the second annual ISG Pulse of the Insurance Industry survey, conducted by leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).
Eighty-seven percent of survey respondents cited improving customer experience as the top priority in designing digital transformation initiatives, with a focus on “mobile-first” and platform-based solutions for customer acquisition and management, product and offer personalization, and simplification of customer touchpoints such as claims and document management.
The survey results also showed increasing security vulnerabilties are accompanying the move to internet-based business processes, with 42 percent of respondents reporting rapidly growing security risks originating from porous customer and workplace technology touchpoints. Democratization of IT and remote work models have further increased risk exposure.
The ISG Pulse of the Insurance Industry survey, sponsored by Hexaware Technologies, surveyed 210 business and IT leaders at European insurance companies during the third quarter of 2021.
Other drivers of digital transformation are competitive pressure, cited by 77 percent of respondents, and faster response to new market requirements, mentioned by 75 percent of respondents.
“The path to all-encompassing customer centricity is irreversible,” said Johanna von Geyr, partner and ISG EMEA insurance lead. “Insurance companies—like businesses of all types—recognize the need to further simplify products and business processes to retain existing customers and remain competitive.
“This trend will increase pressure on IT departments to replace legacy systems, modernize the application landscape and free up resources to develop new capabilities, better manage risk and transition to the platform economy,” she added.
With Insurtechs and other born-ditigal competitors poised to make market inroads, Europe’s insurers say expanding their platform businesses is a top priority. Of those surveyed, 43 percent say they would expand their online presence into a direct sales channel, with similar interest in mobile apps (42 percent), marketing via themed platforms (37 percent), and digital payment (34 percent).
Forty-five percent saw expanding their platform businesses as an efficient way to gain a more comprehensive understanding of customers' needs and using that market knowledge to tap into new opportunities to create value.
With a growing digital landscape leading to more cyber risk, insurers plan to spend more on cybersecurity in the future, von Geyr said, citing the survey findings. “More than 40 percent of the European insurers we surveyed are expected to increase their investments in IT security technologies,” von Geyr said. “We expect the cybersecurity market will experience resulting growth in the next few quarters.”
Von Geyr noted the rise in cyber breaches also offers insurers the opportunity to help their customers improve cyber resilience with expanded cyber coverage and a holistic risk management approach. Some insurers are bundling cyber coverage with features such as cyber risk reports, cybersecurity training and risk advisory services.
To expand their digital capabilities, 46 percent of survey respondents expressed a desire to hire more qualified staff, particularly in data analytics (42 percent) and cybersecurity (40 percent), and 34 percent of respondents said they are seeking suitable IT service providers.
“Most respondents see the benefits of digitalization, such as cost reductions and increased speed, as far outweighing the risks,” von Geyr said. “The rise of millennial buyers, emerging competition, margin pressures, and a tightening regulatory environment have created a landscape in which only agile, data-driven, digitally enabled insurers will survive. Insurance companies are realigning their operations to an ‘online-first’ customer engagement strategy to meet these changing market conditions.”
The ISG Pulse Check – State of European Insurance Industry 2021 report is available on this website.
Information Services Group (ISG), (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries— a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Philipp Jaensch, ISG
+49 151 730 365 76
Matthias Longo, Palmer Hargreaves for ISG
+49 152 341 464 63
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
J.P. Morgan to Acquire a Stake in Viva Wallet25.1.2022 13:00:00 EET | Press release
J.P. Morgan (NYSE: JPM) announced today that it has entered into an agreement with Viva Wallet Holdings Software Development S.A. (Viva Wallet), a leading European cloud-based payments fintech company, and its existing shareholders to acquire an ownership stake of approximately 49 percent, subject to regulatory approvals. Financial terms of the transaction were not disclosed. “We are very excited to make a strategic investment in Viva Wallet to support their vision to empower new growth and payments innovation targeted at European small and midsize businesses (SMBs) and middle market merchant services clients,” said Takis Georgakopoulos, Global Head of J.P. Morgan Payments. “The European payments landscape is fragmented yet large in terms of opportunity, with more than 17 million merchants1 ready to implement scalable payments solutions and this is a big focus area for added growth for J.P. Morgan Payments in the future.” Founded in 2000, Viva Wallet is headquartered in Athens, Greece,
The O-RAN ALLIANCE Announces the 5th Release of Its Open Source Software and An Industry Briefing at MWC Barcelona25.1.2022 12:49:00 EET | Press release
O-RAN ALLIANCE: O-RAN ALLIANCE Industry Briefing, March 1, 2022 at MWC Barcelona O-RAN ALLIANCE plans to hold its next industry event on March 1, 2022 from 17:15-18:00 CET, hosted at the Deutsche Telekom booth at MWC Barcelona 2022, Hall 3 Stand 3M31. The event will include keynotes from O-RAN ALLIANCE’s leadership and an industry panel discussion. Save the date and follow our website for further updates. 5th Release of Open Software for the RAN – “E” – Delivered by the O-RAN Software Community The O-RAN Software Community (OSC or O-RAN SC) was formed in partnership with the Linux Foundation in April 2019, to support software development of open RAN solutions available to everyone. In December 2021, following on the half year release cycle, the OSC published its 5th open software release dubbed "E". The E release further enhances the traffic steering use case, introduces basic RAN slicing feature and closed loop slice SLA assurance. With these enhanced features and the end-to-end integ
Samsung Introduces Smart All-in-One Fingerprint Security IC for Biometric Payment Cards25.1.2022 12:00:00 EET | Press release
Samsung Electronics Co., Ltd., a world leader in advanced semiconductor technology, today introduced its new fingerprint security IC (integrated circuit) ─ S3B512C ─ with enhanced security features. The new solution is EMVCo and Common Criteria Evaluation Assurance Level (CC EAL) 6+ certified and performs in line with Mastercard’s latest Biometric Evaluation Plan Summary (BEPS) specifications for biometric payment cards. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220125005609/en/ Samsung-Smart-All-in-One-Fingerprint-Security-IC (Photo: Business Wire) “S3B512C combines a fingerprint sensor, Secure Element (SE) and Secure Processor, adding an extra layer of authentication and security in payment cards,” said Kenny Han, vice president of System LSI marketing at Samsung Electronics. “The S3B512C is primarily designed for payment cards but can also be used in cards that require highly secured authentications such as student o
EcoVadis Upgrades INNIO Jenbacher Rating to Gold Medal for Continued Commitment to Global Sustainability25.1.2022 12:00:00 EET | Press release
INNIO today announced that its Jenbacher business unit has been recognized by EcoVadis with a Gold Medal as part of its annual sustainability performance rating, placing INNIO Jenbacher in the top 1% of industry peers evaluated by EcoVadis. EcoVadis awarded INNIO Jenbacher the upgrade from a Silver to a Gold Medal rating for its demonstrated improvements and contributions towards sustainable growth in the past year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220125005260/en/ INNIO Jenbacher, Recipient of EcoVadis Gold Medal Rating (Photo: Business Wire) Performed annually, EcoVadis’ assessment focuses on 21 issues grouped into four key themes: Environment, Labor & Human Rights, Ethics and Sustainable Procurement. These criteria are based upon international sustainability standards, including the Global Compact Principles, the International Labour Organization conventions and the Global Reporting Initiative standard. “As
Reply Takes the Top Spot in PAC RADAR as a Leading SAP Service Provider25.1.2022 11:30:00 EET | Press release
Reply is among the most competent and leading SAP service providers in the PAC RADAR "Leading Providers of SAP Services in Germany 2022", an industry study by the independent research and consulting company Teknowlogy Group. The study analyses the service performance of 20 international consulting firms and service providers that implement SAP projects in dedicated IT market segments. PAC RADAR compares the strategy and development of the providers and evaluates them according to market strength and competence. These include project experience, the offered service spectrum and local delivery capability. When comparing the vendors in the ranking, Reply is rated as "Best in Class" vendor in the market for SAP Customer Experience (CX) related services. After winning the SAP Customer Experience Award for Partner Innovation 2021 and being among the finalists of the SAP Pinnacle Awards 2021, this exceptionally good performance confirms the success of the partnership with SAP. Reply achieved
Temenos Announces Infinity Digital for Salesforce to Combine Enhanced Customer Engagement With Industry Leading Banking Platform25.1.2022 10:30:00 EET | Press release
Temenos (SIX: TEMN), the banking software company, today announced the availability of Infinity Digital for Salesforce that brings together the worlds of CRM, assisted channels and digital channels onto a single platform, available here on Salesforce AppExchange – the world’s leading enterprise cloud marketplace. This solution integrates Salesforce Financial Services Cloud with Temenos’ digital banking platform, giving customer-facing teams in banks a holistic view of their customers surfacing both customer engagement and transactional banking data across all channels and transactional systems. Infinity Digital for Salesforce offers banks synchronization between Salesforce Financial Services Cloud and the bank’s core banking systems. It helps banks achieve higher efficiency and streamlining of servicing, onboarding and origination processes with better personalization and greater customer experience. The banking industry has fundamentally changed in recent years; business models are dr
ESI Group and the DesCartes Program Aiming at Transforming Singapore Into a Hybrid, Ethical and Sustainable Smart Nation25.1.2022 10:00:00 EET | Press release
Regulatory News: ESI Group, Rungis, France, (ISIN Code: FR0004110310, Mnemo: ESI), a global player in virtual prototyping for industries, is collaborating in the launch of the DesCartes project in Singapore by providing its scientists, its expertise in hybridization methods and its virtual prototyping software solutions to the various stakeholders. DesCartes a 5-year and a 35 million euros budget collaborative program, has been selected by the National Research Foundation (NRF) of Singapore and is based on the CREATE campus, "Campus for research excellence and technological enterprise", the international research hub of Singapore. Behind this very French name lies one of the largest collaborative programs of the CNRS: the "Program on Intelligent Modelling for Decision-making in Critical Urban Systems", dedicated to Hybrid Artificial Intelligence. A smart city project to a better extent: A smart nation project For many years, many smart cities projects have been launched. The principle
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom