Forrester analyst Olivia Berdak has suggested that insurers are still failing to react to the threat of digital disruption.
Berdak claims that, although some firms are making progress, the majority are failing to address the impact technology is having on the industry and wider business environment.
In a blog posted on the Forrester website, Berdak said: “I wrote last year that European insurers were waking up to the threat of digital disruption. I should have qualified this sentence: Some European insurers are waking up to it. And even fewer are getting out of bed and doing something about it. The gulf between digital insurance innovators and other firms is expanding.”
Berdak goes on to discuss how the European insurance industry has experienced several lean years due to premiums across property, casualty, and life insurance largely stagnating. But as direct sales is an area which continues to grow, it had been expected that insurers would invest heavily in this area more than they have done.
Berdak goes on to suggest that many insurers are yet to realise that digital technologies are more than a single channel. She points out that they provide the means to “build more persistent bridges to their customers’ lives” and make it possible to “drive a business transformation to deliver new customer value and greater operational agility”.
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