January 9, 2018
Digitalization – the Great Disappointment
Large sums are being invested, but not in a targeted manner. We need to better plan and implement digitalization initiatives.
Digitalization? – Let’s do it!
- 91% of all insurers in our survey said they invested in digitalization initiatives over the last three years.
- 89% of companies hope digitalization will lead to a considerably more efficient sales process.
- 87% have developed their own digitalization road maps.
- The most important sales skills and activities in the future will be digital and mobile sales tools.
See also: The Industry’s New Dynamic Duo
Digitalization! – Are we doing it right?
- The digital customer journey and digital sales processes are some of the most important revenue drivers but were only mentioned by around half of the respondents. This means there’s a lack of clear direction on which measures are really required and promising.
- Only one in four digitalization initiatives boosted revenue.
- Digital sales processes are ranked No. 1 for growth drivers currently receiving insufficient investment.
Focus on pricing and value? – Houston, we have a problem
- Price pressure and declining price levels constitute the greatest obstacles to revenue growth.
- More than third of those interviewed indicated they had realized less than 20% of their planned price increases.
- Digitalization further increases this trend, according to the participants.
- Reducing sales variance through well-thought-out sales processes and systematic value selling are regarded as
See also: 4 Ways That Digital Fuels Growth
Conclusion: Insurers see great potential in digitalization, especially in sales. Large sums are being invested, but not in a targeted manner. We need to better plan and implement digitalization initiatives to tap this potential.
Furthermore, digitalization is raising the bar: Increasing price transparency must be met with a clear value argumentation to avoid price and revenue erosion.
You can download the full report here.