Finansliv, Sweden: Cognizant’s Head of Business Consulting in the Nordics Says New Digital Opportunities will Transform the Very Definition of Insurance

The insurance business has seen how other industries ― one by one ― have been radically changed by new technologies, new software-based platforms and new digital approaches,” says Mats Johard. “It is an information-packed industry:  any insurance claim includes complex information such as value assessments, risk evaluations and demographics. However, a full-scale sorting and digitizing of all this information is only a small step away: the insurance industry’s most important assets ― numbers and data ― become digital assets in an instant.” Excerpts:

“For any organizational journey, it is important to have the whole organization on board and that each employee has a general awareness and understanding of the importance of digital transformation.

In order to tackle the transformation in a structured manner, organizations should strive to implement strategies.

Enterprises, and the executives who run them, should prioritize the actions that will make real progress toward digital transformation. These actions include increasing spending on digital initiatives, hiring greater numbers of people with future-ready skills such as data analysis and AI, and using these new tools to enhance and augment the products and services offered by the organization.

Central to this need to build the future of work is the “new machines”, namely AI-infused software.

Of particular importance to insurers is the concept of “mass-personalization,” i.e. treating everyone as an individual and not simply as part of a demographic ― or, in insurance terms, as part of an actuarial profile.

Personalizing services and premiums will be a huge step forward in the development of the insurance industry.

The technical infrastructure at many mature, well-established insurance companies will benefit from being regularly reviewed to see if they require any modernization and upgrading.

With new digital opportunities, the very definition of insurance ― the way in which it is created, sold and used ― will be transformed.

At the heart of this will be data, automation and algorithms that together create huge opportunities to gather information about customers at a level of detail previously unprecedented.”

Click here to read the article in Swedish.