SAP Survey Tells That for Product Innovation and Enhanced Customer Experience Insurers Prioritize Speed and Agility

July 22nd, 2014 by blogadmin Leave a reply »

A recent survey by Sap has revealed that Insurers are looking for speed and agility throughout their infrastructure for innovative product development and an enhanced customer experience. The survey was held at the IASA Annual Conference held in June, and it covered 200 insurance executives. The survey revealed a number of factors for motivating insurers’ innovation strategies. 34 percent of respondents specified that the increasing consumer expectations are their principal driver for new product development, which is the followed by a 22 percent for changing regulatory demands and around 20 percent for availability of new technologies.
Most of the Insurers were in agreement that the increasing customer bases of millennial , those who are born between the early 1980s to the late 1990, have the highest expectations for their carriers. 55 percent of respondents mentioned convenience as millennials’ top priority while selecting insurance products, whereas 22 percent believed in low cost and around 16 percent on their relationships with their agent followed by a small 8 percent who believed in brand recognition.
This has forced many insurers in considering a more adaptable product strategy. Over half of respondents noted that their key strategy to reach millennials is focusing on investing in online, mobile and social technologies for reaching customers across channels. A little over 20 percent indicated that they were tailoring products to suit millennials’ unique needs and around 12 percent were investing in data analytics to segment and target communications.
While insurers are remaining focused on the customer experience, updating their back-end infrastructure also continues to be a priority as they are seeking to inject agility and speed throughout their processes. Over 50 percent of respondents mentioned that their organization has adopted cloud computing in some capacity. While nearly half of these respondents have implemented cloud-based systems for back-office functions others have opted cloud for mission-critical functions like policy administration, product development, claims processing and risk management.
Insurers have also admitted the barriers to cloud adoption in their organizations. Around 34 percent cited security concerns as the primary challenge for adopting cloud computing. Lack of internal buy-in was another key factor, followed by financial concerns, unstable technological infrastructure and shortage of time.
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