Global Banking & Finance, UK: Cognizant’s Head of Cognizant Digital Business, Europe, Outlines How Insurers can Stay Relevant in a World Disrupted by Data, Algorithms, and AI

“Insurers’ five-year strategic planning cycles are unfortunately no longer fit for purpose,” writes Sanjiv Gossain. “To compete and grow, they must build deeper, richer relationships with people, partners and customers.” Excerpts:

“The insurance industry is going through a similar transformation as seen in the banking and finance industry over the past three or four years. In the face of increasing competition from non-traditional areas, what should insurers do to maintain their competitive edge and support customers most efficiently? Cognizant has identified three key areas, based on recent research, on which insurers should focus to stay relevant long term:

• Embrace technology. Insurance companies are embracing new technologies in order to maintain a strong competitive position. The rise of the Internet of Things (IoT), the gathering of enormous amounts of data coupled with machine learning are having a strong impact on the way insurers work.
• Monitoring human behavior. Data from wearables can completely transform the relationship between the insurer and consumer, potentially leading to additional benefits such as providing the customer with a tailor-made insurance contract and developing new products to meet specific needs.
• Creating new business models. In-depth data analysis and the development of new technologies pose a major challenge for insurers: how do you remain relevant in this rapidly changing society?

Only by investing in new technologies and establishing strategic collaborations, will insurers be able to deliver greater personalisation to their customers, improve internal productivity and accelerate business growth.”

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