WALLDORF, Germany, Aug. 9, 2016 /PRNewswire/ -- SAP
NEWSBYTE — A recent report from SAP SE (NYSE: SAP) and Ovum
titled "Technology Transformation in the Global Insurance Industry"
states that, to remain competitive, insurance providers must take a
proactive approach to helping customers manage risk through
technology-enabled "insurance-as-a-service" solutions.
The insurance industry is entering a new stage, one
characterized by new products, services, competitors and customer
demand. As technology-driven change continues to accelerate, it
will challenge existing business models and force carriers to offer
a product-based proposition based on more than just price.
Insurance providers need to become active participants in their
customers' lives, playing the role of a comprehensive "risk
manager" and providing services and solutions based on individual
needs and preferences.
According to the report, the shift will happen in the next five
to 10 years due to the increasing importance of three critical
forces: digital transformation, cloud and the Internet of Things
(IoT). These forces allow carriers to:
- Capture the tremendous volume of data generated by digital
technologies to predict risk more accurately. Carriers can use this
information to become a trusted advisor to their customers and
alert them to potential problems in advance.
- Replace cumbersome IT delivery models with cloud architectures
that are faster and far more flexible. Carriers will be able to
respond quickly to customer demands and requests by introducing new
features and functionalities in near real time.
- Incorporate IoT technology, for example, embedded sensors,
telematics and home automation to offer individual policyholders
the autonomy to create their own, highly customized policies based
on the level of risk they present. As an example, premiums for auto
insurance could vary – when the car is driven, premiums increase
and, conversely, decrease when the car is parked.
"To fully exploit the opportunities presented by these
technologies, carriers need to view them as core parts of their
business strategy," added Charles
Juniper, principal insurance analyst, financial services
technology, Ovum Research. "Digital transformation, cloud and IoT
all play an important role in creating a seamless experience that
provides added value to customers. It's this added value that will
make insurance carriers a more active, valuable participant in
their customers' lives and help them to compete against new market
entrants."
A broader look at the perspective at SAP on the digital
transformation happening in insurance can be found at "How Insurers
Can Prepare for the Digital Revolution."
For more information, visit the SAP News Center. Follow SAP on
Twitter at @sapnews.
Media Contact:
Birgit
Dolny, +49 (6227) 7-61664, birgit.dolny@sap.com, CET
Jill Fisk, FleishmanHillard, +1
(617) 692-0529, jill.fisk@fleishman.com, EDT
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SOURCE SAP SE