Page 10 - WIR 2019 eBook

World Insurance Report 2019 Interactive eBook

Surmounting Emerging Risks with Implementation of key capabilities by insurance firms (%), 2019

Capabilities and Technology Tools

Advanced risk capabilities, supported by technology, will be critical for insurers responding to
the evolving risk landscape.

These capabilities include continuous real-time risk assessment, where insurers can assess
the risk landscape, set up cross-functional teams that include specialized risk professionals, as
well as partner with InsurTechs and third parties to strategically create their product pipeline.

Insurers must also scan market dynamics and stay informed about customer demands and
technology trends. They can do this by setting up a cross-functional R&D team to analyze customer
behavior and digital footprints (such as social media activity) to derive meaningful insights.

Question: Rate the progress of your organization when it comes to implementing the following initiatives to acquire key
Risk control and prevention services must also be implemented. This includes providing capabilities to manage the evolving risk scenario. Rate each initiative from 1–4, where 1 = Your firm has already started
customer education explaining risk, risk coverage and safe behavior advice; and using apps to the initiative, 2 = Your firm is planning to start the initiative in the short-to-medium term (3–5 years), 3= Your firm is
planning to start the initiative in the long term (beyond 5 years), 4 = Your firm is not planning to implement this
monitor and control or prevent risks in real-time. initiative; Only answer 1 is shown in the chart.

25% or less Very low 26%–45% Low 46%–55% Moderate 56%–75% High Above 75% Very high
Finally, insurers must improve the accuracy of risk quantification through artificial
intelligence (AI), machine learning (ML), advanced analytics, real-time data for risk modeling, Implementation of technology tools and techniques by insurance firms (%), 2019
and automated risk assessments.
Omnichannel 63%
engagement
WATCH THE WEBSITE Human-centric
experience design 59%
A synergistic approach to Single view of 49%
developing critical capabilities customer/household
and technology tools will help 55% Data-led strategies Meaningful engagements 29%
insurers effectively navigate 50% Intelligent process Deep via connected devices
emerging risks and better meet automation customer NLP-based support 22%
customer expectations. 50% Advanced risk systems
modeling techniques New distribution 50%
Intelligent fraud- Open channels
50% Intelligent
prevention systems insurer insurer Industry consortiums 45%
Real-time insight
20%
generation from IoT Ecosystem integration 41%
Cloud-native approach 39%
Advanced analytics tools and data-led strategies are very important to get a
sense of what is happening with the customer base. Online insurers, especially, Open APIs 30%
cannot do without this.” Question: Please indicate at which stage your organization is when it comes to using the following tools and techniques
— Nelson Cheng to develop deep customer, intelligent insurer, and open insurer competencies. Use a scale of 1–4 in which 1 =
CTO, Blue – Aviva Life Insurance Company Limited Ideation, 2 = Use-case testing, 3 = Running pilot project, 4 = Implementation; Only answer 4 is shown in the chart.
Source: Capgemini Financial Services Analysis, 2019; WIR 2019 Executive Interviews, 2019.

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