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Compendium

Digital Disruption in Insurance: Cutting Through the Noise

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Compendium

Digital Disruption in Insurance: Cutting Through the Noise

Introduction: Facing digital reality

Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively.

I. Digital strategy

Article

A strategy for a digital age

– Few insurers have defined a comprehensive digital strategy fit to withstand attackers at the gate. The starting point is to understand... the sources of disruption.
Article

Insurtech—the threat that inspires

– Incumbents need to keep their eyes out for new entrants that use technology to create a strategic advantage. The size of their... share in the next generation of the insurance industry is at stake.

II. Digital value capture

Article

The age of innovation

– Insurers have a choice: be disrupted or be the disruptor with new products, services, and business models.
Article

Capturing value from the core

– Insurers’ existing customers, brands, data, and technical skills are valuable business assets if they can be catapulted... into the digital age.
Article

Partnerships, scale, and speed: The hallmarks of a successful IoT strategy

– The Internet of Things both promises to enhance and threatens to undermine insurers’ business models. A three-pronged strategy... is needed to secure its benefits.

III. Digital capabilities

Article

Intelligent process automation: The engine at the core of the next-generation operating model

– Full intelligent process automation comprises five key technologies. Here’s how to use them to enhance productivity and... efficiency, reduce operational risks, and improve customer experiences.
Article

Modernizing IT for a strategic role

– IT has long been seen as a cost of doing business by insurance companies. In a digital era, it must be modernized and recast as... a strategic one.
Article

The promise of blockchain

– Blockchain has huge potential to enhance insurers’ business model, but is also being used by digital start-ups to attack... it. Hence the imperative for incumbents to start exploring this nascent technology.
Article

The advance of analytics

– Harnessing the potential of burgeoning data and computer power to add value must become ingrained in insurers’ every activity.

IV. Digital culture, talent & organization

Article

Building momentum for cultural change

– Being told to abandon old ways of thinking and working and embrace without delay a new, and seemingly riskier, digital culture can be unnerving for insurance companies. But there are certain actions insurers can take to kick-start change while minimizing the risks—and they do not have to alter everything at the same pace.

V. Digital transformation roadmap

Article

A roadmap for a digital transformation

– No insurance company has yet completed a digital transformation—one that fully harnesses the power of digital technology to rethink every aspect of the organization. But a number of carriers are making remarkable progress, indicating the direction others should take.

More resources

About this compendium

What does success look like for an insurer in a digital world, and how is it achieved?

This compendium helps paint that picture by drawing on McKinsey’s experience in the industry and that of some 30 executives whom we interviewed. We hope it will help executives to understand where value lies in a digital world, at the same time as offering a clear, practical approach for capturing it.
Senior Partner

Tanguy Catlin

Works with major financial institutions, and leads McKinsey’s Digital Quotient initiative—helping companies rapidly... gauge and strengthen their digital capabilities to improve financial performance
Senior Partner

Johannes-Tobias Lorenz

Works with major insurance and banking institutions to build digital strategies and transform the customer-service experience,... driving success in an increasingly digital market

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