1. Visit the PowerPoint resources page Backstage for quick tips and slide layout solutions for your presentations.

2. WEBINAR The Digital Insurance Imperative: Go Digital Or Go Bust
Ellen Carney, Principal Analyst
February 2, Call in at 12:55 p.m. Eastern time

4. Agenda
How is the digital revolution toppling insurance business models?
Why are traditional insurance companies struggling to respond strategically?
How do insurers need to change their current business models to adapt?

5. Agenda
How is the digital revolution toppling insurance business models?
Why are traditional insurance companies struggling to respond strategically?
How do insurers need to change their current business models to adapt?

6. There’s change ahead in the insurance business.
Image source: Flickr (

7. Smart devices are driving more frequent engagement
By 2020, there will be 11.6 billion mobile- connected devices.
Consumer adoption of wearable devices will grow from 18% of online consumers in to 29% in 2021.
Smart home devices will grow to more than 50 million by 2021.
Connected car services will grow to $156 billion by 2022.

8. . . . increasing customer expectations
Mobile is the remote control of the connected life.
Perceptions that are freighted by outside-of- insurance experiences.
Disruptors capitalize on (many) industry weak points.

9. . . . opening ubiquitous distribution opportunities
Image source: Digital Trends ( Trend Hunter ( TechFruit ( and Verdeva (

10. . . . and encouraging new and unexpected competitors
Auto OEMs
Consumer utilities
ISPs
Retailers
Retail petroleum
Telcos
Appliance manufacturers
Pharma and medical devices

11. It’s changing how insurers operate
Build dynamic, adaptive, and personal coverage.
Improve underwriting and risk management.
Collaborate to foster agent and partner loyalty.
Drive operational efficiency and staff productivity.

12. Agenda
How is the digital revolution toppling insurance business models?
Why are traditional insurance companies struggling to respond strategically?
How do insurers need to change their current business models to adapt?

13. It’s definitely not easy . . .IQ
Image source: Wikimedia Commons ( Wikipedia ( Pixabay ( and GoodFreePhotos (

14. Go digital or go bust

15. Focus on protection, not products
Stage 4: Customize
Offer customers dynamic coverage that adapts to changing circumstances.
Stage 3: Advise
Use customer data to provide advice on reducing risk.
Stage 2: Protect
Help customers protect experiences like transportation, well-being.
Stages of maturity
Stage 1: Inform
Use interactive content to educate customers about risk.
Utility to customers and potential to drive deeper engagement
Source: How To Make Insurance Brands Relevant Again Forrester report

16. Insurers shift from vertically to virtually integrated

17. Chowder, deconstructed
Image source: Flickr (

18. Traditional insurance business models are inefficient
Life
Workplace
Home
Traditional insurance business models are inefficient
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Auto
Small biz
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing $$ $$ $$ $$
Agent/broker $ $
$ = premiums
$$ = premiums and commissions

19. The divorce between sales and underwriting has already happened
Products
Risk
Policy admin
Claims
Underwriting
Auto MGU, TPA $$
Distribution
Sales, marketing
Auto MGA $
$ = premiums
$$=premiums and commissions

20. That vertical disintegration will drive specialization
Transportation cloud ecosystem
Wellbeing cloud ecosystem
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Lifestyle cloud ecosystem
Products
Risk
Distribution
Policy admin
Claims
Underwriting
Sales, marketing
Digital orchestration layer
Data repository
Agent/broker

21. Insurers will form new partnerships to create value
Understand your customers’ value ecosystems.
Use data insights to anticipate customers’ needs.
Identify and react to new customer needs.
Create new sources of value through digital partnerships.
Discover and act on new opportunities.

22. Your busy customers are looking for help
Base: American online adults (18+) with insurance; Source: Forrester’s Consumer Technographics® North American Financial Services Survey, Q (US)

23. . . . and agents are willing to sell services*
What would sway non- believers?
Bundles
Referral leads
Local providers
Base: 177 agency professionals; Source: Forrester Independent Agent Panel Q3 2015
*Assuming there was a network of providers which enabled an agency to offer customers and business value-added services along with an underwritten insurance product.

24. And lest we think this isn’t happening?
Image source: Google (

25. Agenda
How is the digital revolution toppling insurance business models?
Why are traditional insurance companies struggling to respond strategically?
How do insurers need to change their current business models to adapt?

26. The digital revolution is toppling traditional insurance models.
Image source: Wikimedia Commons (

27. New business models will emerge
Market and sell bundled products.
Provide customer service.
Manufacture policies.
Offer an insurer-as-a-service.
Monetize their data.
Broker emergent risks and new capital sources.

28. Digital drives insurance transformation
Traditional insurance companies become ingredient brands.
Coverage becomes atomized.
The bot-to-bot era dawns.
Telcos make a play in insurance.
Legal and regulatory compliance embraces agile.

29. Digitizing insurance demands more than a vision
Assess your firm’s digital readiness to establish the size of the gap.
Build a business case for digital transformation.
Think through your processes, organization, and metrics.
Monitor the strength of your digital strategy.

30. Image source: Wikimedia Commons (https://commons.wikimedia.org/)

31. Forrester’s Digital Insurance Strategy Playbook
Executive Overview: Become A Digital Insurer — December 2016
Vision: The Digital Insurance Imperative — February 2017
Assessment: Assess Your Digital Insurance Capabilities — December 2016
Organization: Organize For Digital Insurance — Coming 2017
Performance Management: Establish Customer-Centric Metrics For Digital Insurance — December 2016
Landscape: The State Of Insurance, 20Digital 16 — August 2016
Strategic Plan: Refine Your Digital Insurance Objectives — Coming 2017
Processes: Use Customer Journeys To Guide Your Digital Insurance Transformation — November 2016
Benchmarks:
Steer Your Customers’ Insurance Journeys With Benchmarks — December 2016
Business Case: Justify Investment In Digital Insurance — Coming 2017
Road Map: Plan Your Digital Insurance Evolution — Coming 2017
Tools & Technology: Build Next-Generation Digital Insurance Capabilities — Coming 2017
Continuous Improvement: Embed Innovation To Improve Digital Insurance — Coming 2017
Dates and topics of our planned research are subject to change at any time. See for more.

32. Digital financial innovation research series
Strategy
How do I become a digital financial innovator?
Technology
Culture
How can we deliver sustained innovation?
How To Create An Innovative Culture In Financial Services
Digital Financial Innovation Is The Antidote To Disruption
Partnerships
Organization
Digital Financial Innovation Requires Matchmaking
How To Organize For Digital Financial Innovation
Processes
Inject Discipline Into Your Digital Innovation Process
Dates and topics of our planned research are subject to change at any time. See for more.

33. Ellen Carney