SAP: Contextual and personalized experiences now and in the future (2025)
At DIA Munich, SAP is one of our key partners and as such will present its vision on how to meet customer needs and experiences today and in the future. In this article we share a sneak peek and share SAP’s insights on the three strategic priorities they will tell all about in Munich: 1. Digital engagement 2. Protection services and 3. Data-driven insights.
Three trends SAP sees shaping the insurance industry
- Digital is the new norm. Technologies such as IoT, ML, AI, Blockchain, Cloud computing, and Analytics impact end-to-end insurance processes.
- Insurers are managing risk better by shifting from purely financial loss compensation to risk reduction activities.
- The playing field is changing, with insurtech disruptors coming in as new industry entrants, customers, and partners.
According to SAP, winning insurers leverage these trends to create a landscape where they deliver great customer experiences and adopt new technologies to deliver winning products and services more efficiently. Both leading to increased profitability.
This means insurers need to redefine their core competencies, taking into account digital network economies and rebuild business strategies around them. Leveraging digitisation, they should integrate and optimize products and services to improve the customer experience. For instance, they could deliver point-of-purchase insurance coverage with a mobile app, covering ski equipment and personal injury protection for skiers at a resort, combining home insurance with security systems or using Geo and weather data to offer individualized services to clients in areas at risk.
Identifying the key drivers of customer behaviour will help boost acquisition and reduce churn. Gathering feedback across broker and customer journeys to better understand behaviours and act on this will help insurers develop their road map for future growth.
Personalised solutions at scale by 2025
In SAP’s Vision of Insurance 2025, insurers will deliver personalized solutions at scale and as a service to their customers. Most of their revenues will come from customised services that are related to digitalized products in a cross-industry ecosystem.
These services span from simple cross-sell and up-sell services to complex underwriting risk models, including new business models based on the monetization of data assets. For example, satellite data will enable insurers to gain insights and predict impacts from natural disasters, helping them keep costs down for their clients and make the world a safer place.
In 2025 what will insurers do differently from today?
To succeed in the digital age, insurers will analyse each customer’s behaviour, benefitting from connected lives, devices, and external data sources to build an effective engagement model. In addition, insurers will drive organizational alignment and transformation to create best-in-class experiences including enrolment, policy renewal, claims processing. Using real-time simulation and analysis to evaluate financial implications of strategic business choices.
Secondly, insurers will align internal and external sources to provide services that go beyond traditional insurance products. Proactive fraud prevention capabilities will be embedded into relevant processes to mitigate risk exposure.
And lastly, insurers will be able to better anticipate on customer behaviour, such as policy cancellations or renewals, using insights from transactional data and digital interactions. With a real-time finance and risk data platform they will effectively manage risk, protect investments, and enable compliance with accounting regulations.
Global network economy at US$60 trillion by 2025
The business economy is moving from being industry-specific to digital network economies. Resulting in alliances with other companies, even competitors, to create complementary networks of offerings and services. The effect is a blurring of industry lines. This will grow to an economy of US$60 trillion by 2025 and combine fewer ecosystems, according to McKinsey & Company.
Insurance companies are uniquely positioned to participate in many of these networks, as they touch life, health, property and wealth, housing, travel, and public services, to name a few. As a result, insurers can realise a faster time to market, lower R&D costs, a higher revenue from new products. Customers will be happier and open for x-sell and companies’ productivity will increase thanks to better insights.
As industry after industry undergoes its own digital transformation, a world of opportunities opens up for insurance companies to become partners in their customers’ lives. Those that do, will cement their place for years to come with a new generation of consumers who live online.
Who is SAP and what is SAP’s role in this?
SAP for Insurance is targeting insurers with all business lines and all elements of the value chain, from personalized marketing to sales, fraud and claims. To offer solutions to its clients, SAP has built a strong ecosystem of Solution and Cloud partners.
SAP enables its customers to become intelligent, sustainable enterprises by bringing together a comprehensive portfolio of solutions and technology in service to customers’ business process needs. Think of platform technology, business applications and support. Its machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of competition.
“With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives.”
For more information, visit www.sap.com