Insurance industry in transition: Lünendonk study shows pressing challenges and investment priorities

Die neueste Lünendonk-Studie „Digital Outlook: Insurance“ präsentiert die digitale Transformation in der Versicherungsbranche. Nicht nur die Digitalisierung bestehender Geschäftsmodelle, sondern auch die Entwicklung komplett neuer Geschäftsfelder basierend auf neuen Technologien steht im Fokus. Weiterhin zeigt die Studie, dass Versicherer verstärkt Budgets für die digitale Transformation aufwenden und in Bereiche wie Data Analytics, Prozesseffizienz, Customer Experience, Cyber Security und IT-Modernisierung investieren. Doch welche Auswirkungen hat dies auf den Markt und die Branche? Die folgende Analyse geht auf die möglichen Konsequenzen und Veränderungen ein.

Between core business and disruption

84 percent of the insurers surveyed consider the shortage of skilled workers and demographic change to be the biggest issues, followed by the speed of innovation and technology cycles. This means that the industry faces significant challenges that need to be actively addressed. The change to platform-based business models and the competitive pressure from digital pioneers are cited as further challenges. In view of these developments, 72 percent of insurers are investing heavily in the digitization of their existing core business and 65 percent in completely new and disruptive business models.

Customer interaction: online and offline are linked

Digitalization is also changing customer interaction. While 94 percent of insurers continue to rely on classic (agency) sales, 57 percent plan to rely more heavily on digital channels. Omnichannel management is becoming increasingly important and AI systems and data analytics are to be used more extensively to individualize the customer approach.

Investment areas: Cyber ​​security and customer experience in focus

The study shows that 94 percent of insurers want to invest more in cyber security and 87 percent in customer experience management. Surprisingly, only 38 percent prioritized cloud transformation and 37 percent prioritized legacy modernization as areas of investment.

Impact on the market and industry

According to a report by www.it-finanzmagazin.de The results of the study suggest that the insurance industry is in the midst of a comprehensive transformation process in order to meet the new requirements. This not only impacts the way insurance is conducted, but also competition and market dynamics. Platform economics, cyber security and customer experience will be even more important in the future. Companies that neglect these areas could run the risk of being left behind and of being left behind in the future by dominant companies that are actively driving these trends.