Majority of insurers admit challenges extracting value from transformation initiatives; most say their transformation efforts have been less than ideal
Faced with disruptive economic, demographic and technological change, most insurers are struggling to reinvent their organizations for the future. According to Empowered for the future: Insurance reinvented, a report released today by KPMG International, only half of insurers polled believe they are capable of extracting and sustaining value from business transformation initiatives. Fifty-seven percent admitted that their transformation efforts to date have been less than ideal.
The report was launched during the International Insurance Society’s Global Insurance Forum 2016 in Singapore (12-15 June) where industry leaders and executives gathered to discuss innovation and industry transformation.
Putting the customer first
According to the KPMG report, insurance executives clearly understand the urgent need for transformation. However, it finds many insurers are more focused on implications of regulatory policy and may not be placing enough attention on changes in customer preferences and needs. Less than a quarter of respondents expect their operating model to be disrupted by changes in customer behavior.
Strengths to build from
It’s a given that many insurers possess the skills and capabilities required to bring about incremental change in their organization. More than half (53%) said they were capable of achieving short-term transformation wins.
But there is a big difference in achieving a sustainable transformational outcome, finds the report.
Applying technology to transformation
The report finds that insurance executives increasingly view technology as a catalyst for change. 47% said that new mobile platforms and apps were forcing change in their business and creating new opportunities for transformation. 45% said the same about social networking and collaboration and 41% said the same about data and analytics.
Looking for new ideas
Around a third of respondents to the KPMG survey noted that they were watching organizations outside of the insurance sector, and those with disruptive technologies in order to find inspiration to help them reinvent their organizations. The report finds that insurers are increasingly taking ideas, approaches and even talent from other sectors to help improve their effectiveness.
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