A new report from KPMG has called on the insurance industry to reinvent itself in order to survive as disruptors continue to impact the industry.
They also found that most insurers are struggling to reinvent their organisations for the future and Martin Blake, New South Wales chairman and insurance leader in Australia for KPMG, told Insurance Business that the industry needs to change sooner rather than later.
The existing insurers will be in an unprecedented competition from new digital rivals, and it is really possible that some of the major insurance names we know today will disappear in ten years.
Today’s insurance companies are in a life and death crisis but this is also a golden opportunity to change and innovate for the future. Over the next five years, the industry may see more changes and innovations than in the past 50 years. The industry will need to “fundamentally change”, not only to survive, but also to thrive.
In the Asian market, the high level of digital interaction presents its own challenges and opportunities. In a country like China, it is estimated that more than 80% of Internet users will consider buying insurance online, these digital interaction means that insurance products can have a higher acceptance rate than traditional marketing effort.
SH Group considered the one most important thing to do is to consider the current and future needs of customers and the level that customer can accept this new technology. SH Group prioritise this consideration as very important because they belief at the beginning of any big transition project, it is always very important to understand and set a clear vision to follow. These visions must take into the account of the customer preferences, needs and acceptance level, if not any large-scale changes are futile and pointless.