The Technology Vision 2014 for Insurance report claimed this was a serious concern for traditional insurers who were coming under fire from digital disruptors. It added that consumers were now comfortable with digital transactions and 52% would actually prefer to apply or purchase insurance online.
The report said: “Those that win the race to transform into digital insurers will find opportunities to disrupt their existing markets as well as to drive new revenues and profits in industries and customer segments where they have not traditionally competed.
“Those that don’t get out of the starting blocks quickly enough will be outrun by more aggressive insurers – and they may also lose market share and profits to tech companies, automotive manufacturers, and other companies pioneering technologies that undermine the traditional insurance business model at its foundations. The choice is a stark one: become a disrupter or be disrupted.”
The report added that data had become one of the most valuable assets within the insurance industry. It said insurers needed to treat data as a supply chain and put insurance systems in place that would allow this information to flow through the whole organisation.