Many Insurers Increasing Focus on Digital In Wake Of Pandemic
“Digital” Strategies are Diverse: Novarica study of 60+ insurer CIOs shows four distinct profiles of how insurers approach digital strategy
Boston, MA (June 2, 2020) – Insurers show diverse opinions on what is part of a “digital strategy,” with different insurers clustering around different key functions, according to Insurer Digital Strategies: Current State and Post-COVID Plans, a new council study from research and advisory firm Novarica. Of the 67 participants surveyed – representing a cross-section of property/casualty and life/annuity insurers across all sizes of companies and most lines of business – only 40% of insurers have a formal digital strategy, but most claim at least a set of best practices.
“Almost all surveyed insurers agreed that customer engagement and service were part of digital strategy,” said Paul Legutko, VP, Digital Marketing and Analytics, and lead author of Novarica’s new report. “Digital strategy needs to start with the customer experience and customer journey, though customer-centricity might manifest as digital marketing for some insurers and digital operations for others.”
Among the key findings of the report are:
- Only 40% of insurers have a formal digital strategy, but most claim at least a set of best practices. For those with a formal strategy, the CIO or their organization is most likely to own the strategy.
- 42% of insurers say digital strategy has increased in importance since the pandemic, but only 9% have increased digital budgets.
- Insurers have diverse approaches to digital strategy, but most can be categorized as one of four profiles: traditional e-business, digital marketing, digital operations, and broad focus.
Click here for the table of contents or to access the report.
Report Summary
Insurers’ digital strategies vary widely in maturity, scope, focus, ownership, and metrics, but can be understood as one of four profiles: traditional e-business, digital marketing, digital operations, and broad focus. The pandemic has increased focus on digital for 42% of insurers. Distribution and customer engagement remains the primary focus for a majority of insurers, but many now also include digital marketing and operations within their strategies. The pandemic has increased the importance of digital strategy for many, but not all, insurers.
This report analyzes and presents the results of a survey of insurer CIO members of Novarica’s Insurance Technology Research Council.
Topics:
- Scope and focus of digital strategy
- Ownership and measurement of digital
- The effect of COVID-19 on digital strategy
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: Novarica
Tags: coronavirus, Digital Innovation, Digital Insurance, epidemic, Novarica, strategy
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