According to the Forrester research report, a lot European insurance companies have not reacted quickly enough to the threat of disruption by digitally-focused competitors. Outside of their traditional competitor business, there has and will continue to be a list of digitally savvy competitors entering the market, companies such as “Drive Like a Girl” and “Friendsurance”.
Oliwia Berdak, Forrester Research author, commented: “Some European insurers are waking up to it. And even fewer are getting out of bed and doing something about it. In 2015, the gulf between digital insurance innovators and other firms is expanding”.
The report identifies that customers are now increasingly more engaged with technology with the constant use of social media and a thirst for new technological developments. Some of the large insurance firms, such as Direct Line, have heeded this advice with the development of wearable technology which allows the insurer to accurately work out the inherent risk- much like telematics car insurance.
The Forrester Research report highlights that clients are keen to use mobile and online technologies to communicate with insurance providers, which can be used to support wider commercial changes. The reports states, “Digital technologies are much more than just a channel.
They can drive a business transformation to deliver new customer value and greater operation agility. Digital technologies can aid insurers in particular build more bridges to their customers’ lives to address the industry’s low customer engagement and creeping commoditisation”.
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