Finansliv, Sweden: Cognizant’s Head of Business Consulting in the Nordics Says the CIO has an Increasingly Important Role in the Revamping of Insurance Companies

“Insurance has always been a data-driven industry where risks are assessed based on the information available on each customer,” writes Mats Johard. “As technology continues to develop at a rapid pace and consumers become more outspoken across forums and social media, insurers must ensure that they are innovative, relevant and more in tune with both their individual customers and new ways of working. They can do this by drawing on customer and market insights in order to provide personalized services, backed by more efficient business models.” Excerpts:

“Insurance companies are facing a number of challenges such as changing customer behavior. Clients now expect insurers to meet them when they want, at the time and place that is right for them, through a variety of channels and in many different situations.

Technology-savvy insurers that are quick to develop new applications and solutions can also win customers from traditional insurance companies, especially when it comes to life insurance. Many insurers also have issues with processing claims due to underlying infrastructure problems.

The potential for improvement is asymmetrical between income generation and developing new services and products — making claims processes more efficient generally has a much larger impact on the bottom line than mere effective marketing.

Insurers also see reduced risk in general thanks to Big Data, the Internet of Things, and greater transparency.

Insurance companies exist by taking on risks at a reasonable price. There are already companies in Sweden that offer policies based on certain behaviors. Insurance companies like Moderna Försäkringar have, for example, a car and motorcycle insurance where safer driving gives a discount on the insurance premium.

A Cognizant study highlights why many insurance companies may be challenged by their digital transformation. CIOs in the insurance sector believe, to a greater degree than in other sectors, that they lack what it takes for rapid development as their technology is still based on legacy infrastructure.

Another study, maps out how CIOs in property insurance companies perceive their role in their companies’ development. 90% of the 50 insurance company CIOs who were interviewed say that they should have a key role in the company’s digital transformation, but only 27% said that they actually have such a leading role. CIO must be there to lead the digital transformation effort.”

Click here to read the article in Swedish.