Wednesday, 09 November 2022 17:57

Six trends in insurance innovation that mark the year

Written by Evelyn Alas

Why is innovation in insurance so critical to the industry's survival and growth? How are insurance companies responding to emerging challenges and opportunities?

Innovation is no longer a crisis response or an abstract, futuristic concept. It is a proactive approach that enables insurers to introduce new value propositions for their customers, their ecosystems, the industry and the economy at large.

Reviewing the nearly 400 entries submitted to the Qorus-Accenture Innovation in Insurance Awards 2022, the consultancy identifies 6 key trends:

Trend 1: Truly omnichannel.

Engaging customer experience, anywhere and everywhere.

From interactive and efficient claims to proactive risk prevention, it was clear from the nominations received that providing customers with a true omni-channel experience was a priority. Using new technologies, artificial intelligence capabilities and intelligent ecosystems, innovative insurers around the world are connecting with customers and brokers in new ways.

Cases in point include Allianz Partners' Visi 'Home, which provides its partners with a video diagnostic tool to provide efficient remote assistance.

Or the new Bradesco Vida Viva product, which adapts to all stages of the insured, and can be used throughout life, with 12 assistance options available.

And examples such as Etiqa Insurance Singapore's artificial intelligence (AI) model for opinion analysis that captures valuable feedback both in communication channels such as WhatsApp and touchpoint surveys.

Trend 2: Integrated ecosystems.

Complementary ecosystems for greater value.

With integrated ecosystems, insurers are expanding their value proposition by creating complementary ecosystems to serve their customers and promote greater efficiency in their organizations. This can be internal or external with partnerships within and adjacent to the insurance industry, Accenture explains.

Examples include AIA with ALive in Thailand, an ecosystem of health and wellness offerings that has put the community at the center to support young families and help them lead healthier, longer and better lives.

Also AXA Digital Health Platform, which is creating an open healthcare ecosystem to improve service outcome and patient experience by driving direct collaboration of market players, intelligent orchestration of services, secure and compliant data sharing and analytics.

And Nationwide which has built a connected ecosystem of capabilities to support strategic partnerships and publicly available API-driven digital products.

Trend 3: Convergence of health and wellness.

Improving customers' lives by proactively reducing risk.

The convergence of health and wellness illustrates the true power of convergence in insurance. By developing innovative new products that address key health issues, as well as more efficient ways for consumers to interact with their insurance and healthcare providers, insurers can not only add value, but also be closer to customers when they need it most.

Aflac in Japan has developed 3D content on nursing and cancer care to help customers better understand the experience and implications of caring for cancer patients.

Confiamed has created a product that supports its customers in their most difficult health episodes, allowing them to be closer at any time and in any place.

And Mapfre has created VIVE FÁCIL, which responds to the needs of the growing aging population. By leveraging technology to gain insight into the reality of seniors' daily lives, they are providing tools to help their family members take better care of them.

Trend 4: Sustainable insurance

Contributing positively to communities and the planet

It is clear that sustainability has moved beyond environmental issues to encompass all environmental, social and governance concerns. Insurers are connecting sustainability to their purpose and vision, and using technology to track their own ESG requirements or create innovative products that add value to customers, society and the environment at large.

For example, Moonshot Insurance helps reduce the carbon footprint by supporting a wide range of transportation. It covers all journeys made with land vehicles for hire - bicycles, electric scooters and other personal mobility devices and even carsharing - in the event of breakdown, theft, or even driver accident or damage caused to a third party.

Sustainability is only possible if it is measured and tracked according to clear metrics. Ping-An has created an AI-enabled ESG platform that helps insurance companies and institutional investors promote their ESG goals.

And in the case of Unigarant, ANWB Drive Safe event data makes it possible for local governments to assess road safety based on data. This makes it a unique collaboration between public and private entities.

Trend 5: Differentiation through AI and Technology

Intelligent technology that sets insurance companies apart.

While AI is already pervasive, it remains a key differentiator for insurers and is essential in upgrading traditional systems to create new products and data-driven propositions.

FWD Group is focused on becoming a cloud-driven company to rapidly enable business growth aspirations.

And the Generali Smart Automation Platform which is the first platform created at Group level in collaboration with Generali Italia to provide automation and artificial intelligence services to Generali countries worldwide.

Or InsFocus Systems provides a system that allows users to define campaigns using pre-designed templates and definition tables reducing time to launch.

Trend 6: Template Transformation

The people driving the reinvention of the insurance industry.

Insurers can only meet the above trends with the right skills and internal resources. Our final trend, therefore, illustrates how insurers are reinventing their workforce, from recruitment to upskilling. Technology is key, with AI and metaverse innovation improving employee, intermediary and ecosystem interactions.

In Bajaj Allianz General Insurance Company's Project Economy, cross-functional teams come together to work on a commercial project and are recognized and rewarded based on the commercial outcome.

ERGO Versicherungsgruppe is multiplying the learning impact of sales agents with soft skills training using virtual reality.

And the One Zurich global employee app uses an internal ecosystem to generate cohesion and a positive employee experience.