Les besoins verticaux définissent la marche à suivre pour les transformations de produits numériques et les stratégies

Les initiatives de transformation numérique se déroulent différemment selon les secteurs verticaux et les entreprises, en fonction des besoins métiers en jeu. Lorsque les entreprises subissent des transformations numériques, elles se concentrent souvent sur

  • les processus informatiques,
  • les ventes et le marketing

avant le développement des produits. Cependant, ce rapport expliquera aux DSI et aux directeurs de la technologie comment les entreprises de différents secteurs verticaux utilisent l’organisation produits comme catalyseur de leur transformation numérique, et comment cette décision améliore leurs relations avec les clients.

Principales conclusions

Les sociétés de produits physiques se concentrent sur l’IoT

Pour les organisations produits physiques, l’étape évidente vers une entreprise numérique consiste souvent à connecter des produits et des actifs. Il s’agit d’une tâche complexe qui nécessite

  • une infrastructure technologique intégrée,
  • une grande compétence dans la connectivité et l’Internet des objets (IoT),
  • ainsi qu’une logique claire sur la façon dont les produits connectés répondront aux besoins de leurs clients.

Les sociétés de services construisent des plates-formes numériques orientées client

Les entreprises du secteur des services basculeront vers le commerce numérique grâce à des plateformes numériques axées sur la clientèle. Ces projets doivent être

  • faciles à utiliser,
  • évolutifs
  • et intégrés aux partenaires de l’écosystème

afin de créer de la valeur pour les clients.

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Cliquez ici pour accéder à l’analyse détaillée de Forrester

Taking Digital Regulatory Reporting from Concept to Reality

In its Digital Regulatory Reporting (DRR) project, the U.K. Financial Conduct Authority (FCA), in conjunction with the Bank of England, has invited financial institutions to explore ways to work smarter on these activities by delegating much of the hard work to technology. Success in the endeavour, as the FCA put it, “opens up the possibility of a model driven and machine readable regulatory environment that could transform and fundamentally change how the financial services industry understands, interprets and then reports regulatory information.

Part of the project’s work program was a twoweek “TechSprint,” held in November 2017, that was intended to test the feasibility of fully automated regulatory reporting with straightthrough processing of regulatory submissions. Among the anticipated benefits, accruing to financial institutions and regulators alike, are

  • greater accuracy in data submissions
  • and reduced time, cost and overall effort in generating them.

The TechSprint demonstrated that DRR could be accomplished under such controlled testing conditions and provided a proof of concept. Since then the program has held an extended pilot, as well as industry-led roundtable discussions bringing industry experts together, to try to determine whether and how DRR could be scaled up and put into practice in the real world.

The chief aim of the roundtables is to go over issues – legal, technological and regulatory – that could facilitate or impede the introduction of DRR. Participants in the latest and final one, held in London in June and hosted by Wolters Kluwer, seemed intent on contemplating the limitations of the concept: attempting to identify what a system might be able to do by acknowledging what it most likely will not be able to do.

One thorny matter that was highlighted involves a potential conflict between DRR, which participants generally agreed would be most effective following hard and fast rules – ideally by using a standardized model encompassing many supervisory frameworks employed across multiple jurisdictions – and the principles-based supervisory architecture that has evolved since the global financial crisis. If a substantial portion of the reporting process is handed over to machines, will management judgment be forced to take a back seat in matters of risk management, compliance and overall governance? Put another way, how compatible would DRR be with postcrisis supervisory architecture if interpretation of regulations by bankers is deemed a feature of the latter and a bug of the former?

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Click here to access Wolters Kluwers detailed analysis

 

Accelerated evolution – M&A, transformation and innovation in the insurance industry

Strong appetite for deal activity

Today’s insurers know that maintaining the ‘status quo’ is not a recipe for sustainable growth. They feel the pressure of disruption in the market from

  • new competitors,
  • new technologies,
  • new customer demands
  • and new sources of capital.

They feel the pain of

  • continued low interest rates,
  • volatility in underwriting losses
  • and pressure on profitability,

as investment portfolio yields continue to decline.

Organic growth has been challenging across most of the mature insurance markets. Consider this: Since the start of this decade to 2016, global gross domestic product (GDP) increased by more than 20 percent. Yet the global premium market grew by just 9 percent over the same period. Insurers recognize that things must change if they want to maintain or grow their market share.

“In an era of anticipated disruption of legacy business and operating models, global insurance executives realize that their strategy cannot be about pursuing growth for growth’s sake. When it comes to growth strategy, more of the same is not necessarily the best answer. What may have been a core business in the past may not be in the future,” notes Ram Menon, KPMG’s Global Insurance Deal Advisory Leader.

Today’s insurance leaders are taking a more strategic view of the value of M&A. According to a recent global survey of 115 insurance CEOs conducted by KPMG International, more than 60 percent of insurers now see disruption as more of an opportunity for growth than a threat. And they are using their capital and their M&A capabilities to maximize those opportunities — often by strategically deploying capital towards emerging technology as a competitive advantage to

  • engage customers,
  • generate cash flows
  • and enhance enterprise value.

The good news is that — for the most part — capital and surplus levels are at record highs across life, non-life and reinsurance markets. And most insurers plan to tap into that capital to make deals. In fact, our survey suggests that close to three-quarters of insurers expect to conduct an acquisition and two-thirds expect to seek partnership opportunities over the next 3 years. Eighty-one percent say they will conduct up to three acquisitions or partnerships in the same period. More than 70 percent said they are hoping their deals will help transform their organization in some way. As a top priority,

  • 37 percent hope to transform their business models,
  • 24 percent want to transform their operating models,
  • and 10 percent are looking to acquire new innovation capabilities and emerging technologies

through their acquisitions.

“Insurers increasingly recognize their days of operating business-as-usual numbered. And it’s not small changes market going to be undoing — big ones,” says Thomas Gross with KPMG Germany. Auto insurers, for example, looking at rapid adoption of mobility models and wondering how they add value when car manufacturers or leasers own relationship customer.”

On their path to transformation, insurance companies expect to strategically deploy capital against a range of specific inorganic growth opportunities:

  • transforming their business models for sustainable growth;
  • modernizing their operating models for profitable growth;
  • enhancing customer engagement;
  • and gaining access to innovation and emerging technologies.

“The top factor that will drive insurance acquisitions will be the need for emerging technologies. Insurance companies are all looking at how to put their operations on digital platforms in order to save time and resources both for the company and the customers,” notes the Head of Finance at a China-based property and casualty (P&C) insurer. At the same time, a significant number of insurers also hope to rebalance their portfolio of businesses. Many plan to evaluate whether they should fix or exit businesses that are struggling to achieve returns in excess of their longterm capital rates. This should allow them to remain focused on transforming businesses they consider core for the future while freeing up additional capital for reinvestment into new lines of business and technology capabilities.

As the director of finance at a UK-based non-life insurer notes, “Units that are consistently performing poorly will be segregated to further analyze their positions and whether or not they still fit in the company’s planned structure. We discourage force-fitting any product or company unless it has great potential for generating revenue. If it does not, we look for suitable buyers for the business.”

Our data indicates, insurance executives expect to exit non-core businesses, enter new markets and gain access to new technology infrastructure and operating capabilities via M&A and partnerships, as a way to further diversify their global risks and earnings profile.

Looking beyond the borders

Our survey suggests that the majority of insurers will be involved in some sort of non-domestic deal: 68 percent say they expect to conduct a cross-border acquisition, partnership or divestiture over the next 3 years. Just 32 percent say their top priority will be on domestic activity.

“Over a period of 3 years, we expect to see a lot of M&A transactions overseas. We are looking to expand into regions that are new for us and with acquisitions, you can get going without having to set up a base from scratch or encounter a lot of unforeseen risks,” notes the senior VP for M&A at a global insurance brokerage firm. Perhaps not surprisingly, our data suggests that insurers expect to see the most activity in North America — the US in particular. Given that the US is still the largest insurance market in the world with around 30 percent of the global premium market share, many insurers see the US as a source of steady market growth and relative premium stability.

“The volume of M&A in North America will increase the most in the coming years. With the new tax reforms, insurance companies will pay lower taxes — these new regulations will provide insurers opportunities to grow. Companies from other markets will also want to take advantage of the lower tax rate and will look for ways to expand into the US market,” suggested the CFO at a Bermuda-based reinsurer. Changes to US tax laws will certainly create significant disruption and opportunity for insurers both onshore and offshore. “The reduction in the corporate tax rate to 21 percent makes US assets much more compelling,” notes Philip Jacobs, leader of the Insurance Tax practice with KPMG in the US. “The lower US tax rate has also eliminated some of the offshore tax advantage; the large Bermuda players may still be operating with relatively low effective rates, but the tax differential between operating in the US versus Bermuda has narrowed.”

Latin America, however, expects relatively lower levels of deal activity. “It’s a sellers’ market in Latin America,” notes David Bunce, Senior Client Partner with KPMG in Brazil. “Lots of international insurers want to get into certain Latin American markets, but nobody is really ready to sell.”

At the other end of the spectrum — and the other side of the world — Asia-Pacific is widely viewed as a region of massive growth potential and innovation. China has already become the world’s second largest insurance market (with around 10 percent of
global premium market share) and premiums have more than doubled since 2010. Singapore and Hong Kong have long been key centers of insurance innovation growth.

Asia-Pacific was identified as the geographic region where insurers would most likely seek partnership opportunities. “As insurers seek to expand outside of their traditional distribution networks in Asia, digital partnerships are emerging as a fairly quick way to tap into new customer segments without significant upfront capital investment,” adds Joan Wong with KPMG China. “A digital partnership could unlock significant new growth, which would tip the balance for those making a ‘go or grow’ decision about their businesses.”

The director of investment at a Korea-based international insurer agrees. “Asia has become one of the biggest markets for insurers, and the region’s growing population along with changes in capital regulations will give insurers the backing they need to grow. In China alone we have seen a major increase in the number of companies seeking out new ventures in the insurance sector.”

While the majority of our respondents say they are looking across their borders for growth, those in Asia-Pacific are much more likely to be focused on domestic acquisitions instead. “Most of the markets in Asia are still fairly domestically oriented and there is still significant fragmentation and inefficiency that could be eliminated,” adds Stephen Bates with KPMG in Singapore. “Given the growth potential across the region, it’s not surprising that Asian insurers are thinking about taking advantage of opportunities at home before investing further into foreign markets.”

Somewhat tellingly, insurers expect most of the divestiture activity to originate from Western Europe. As the head of finance and investments at a large French insurer argues, “The persistent compression in global interest rates continues to be a challenge for the insurance industry, and many companies in Europe are aiming to divest in part to cope with this. When you add in the factors of changing regulation and customer demographics, it means that insurance business models have evolved and companies are reshaping themselves accordingly.”

“Insurers in Europe are very interested in diversifying their risk and see adjacent markets as an opportunity to do just that,” notes Giuseppe Rossano Latorre, Head of Corporate Finance at KPMG in Italy. “There are a number of life insurers that are looking at the asset management business, for example, as a potential growth opportunity in the future.”

Our data indicates that in the Life sector, acquisitions will likely focus on finding lower-risk, higher-growth, higher-return assets, particularly around capital-light retirement, investment management and group benefits businesses. However, greater levels of activity should be expected in the Nonlife sector, driven by a growing appetite for more profitable specialty risks and commercial risks, with a preference for commercial risk in the small- and medium-sized enterprise (SME) sector.

What this survey makes clear is that global insurance companies recognize they now have a window of opportunity to strategically allocate their capital across the globe towards achieving and accelerating their transformation strategy.

MandA_Innovation

Click here to access KPMG’s detailed study

The automation journey: types and benefits

Intelligent automation is set to transform our lives. For business services, it promises huge gains, including lower costs along with better market insight into customer experiences.

As a result, many organizations are already using basic robotic process automation (RPA) to carry out simple, rules-based tasks to become more productive.

To realize intelligent automation benefits faster, many organizations want to accelerate the automation journey. In our experience, seeking this goal requires planning that should follow four principles:

  1. Business led; technology enabled
  2. Start small, execute well and scale up rapidly
  3. Develop an internal automation capability to sustain progress
  4. Use RPA to achieve greater productivity and as a stepping stone for enhanced process and cognitive automation that can lead to transformational change

The next step is to introduce more sophisticated intelligent automation classes that have the potential to lead to transformational change.
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Rethinking Automation Myths

Misconceptions about intelligent automation can delay the automation journey or dilute potential benefits. Following are five common myths along with our views on the truth.

  • “ Implementing a bot will significantly improve productivity.” – Yes, but boosting productivity is often more complex than expected. For example, implementing a new process and managing change simultaneously can dilute savings.
  • “We need to transform our processes before adding RPA. »– Ideally yes, but you can incorporate process transformation into your RPA journey, either before or after automation. RPA is another lever that can be combined with more traditional transformation tools.
  • “We can deploy our first bot quickly.” – The pilot can take longer than expected. This is because you need to build the right infrastructure, capabilities and sponsorship. The cost per bot will decrease significantly as you scale up and accelerate your execution speed.
  • “We need to build lots of bots.” – Don’t get mesmerized by volume. Utilization per bot is a better measure for understanding automation effectiveness and efficiency.
  • “We can move straight to cognitive solutions.” – Evaluate your needs and capabilities. While some organizations begin with small cognitive pilots, RPA can also be a stepping stone in your automation journey.

See the bigger picture – Implementing intelligent automation is more than just technological change. It affects components across your operating model.

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Click here to access KPMG’s discussion paper

 

Make the right decisions about emerging technologies

Today’s businesses are innovating across

  • business models,
  • products,
  • services
  • and customer engagement

while disrupting markets and entire industries. Much of this innovation is driven by applying emerging technologies throughout the value chain. It creates great opportunities but at the same time presents significant challenges and unknown risks and consequences to organizations. Competitors can completely disrupt an industry, or an organization can disrupt itself first and lead a new phase of growth.

This pursuit of everything digital is happening at an accelerating pace. Speed has become a huge source of value whether measured by faster decision-making or how quickly an organization can go from ideation to revenue. This need to deploy digital capabilities quickly and at scale is the antithesis of IT-led projects that are typically months or years long and, as a result, often out of frustration, the business is increasingly sidestepping the IT function to procure new technologies. The combination of an increasingly tech-savvy population combined with the proliferation of cloud-based software as a service (SaaS) solutions has greatly simplified this process. In this race to harness emerging technologies and innovate it is easy to forget about governance and that can lead to significant costs and risks.

Understanding when, how, why, and what new technologies are introduced to an organization is critical to both maximize the opportunities that they present and minimize the inherent risks.

Establishing a governance framework that embraces disruptive technologies and encourages innovation while ensuring risks are identified and managed is essential to an organization’s ability to survive and thrive in a digital world. Innovation / Emerging Technology Councils comprised of the right mix of internal and third party experts can ensure that the right approach is taken, investment is available and prioritized, and opportunities can be scaled.

The unique characteristics of emerging technologies

  • their diverse applications,
  • the myriad concerns raised by some new capabilities,
  • the need for public engagement,
  • and the challenge of effective coordination between governance players

– create the need for a new governance approach and a new lens through which to view risk management.

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Click here to access KPMG’s detailed article

How to Protect and Engage Customers

Think about the many devices and channels your customers use today and the barrage of marketing messages coming across them. It’s overwhelming. How do you break through to meaningfully engage with customers, keep them loyal, and increase incremental revenue?

Finding ways to stand out from entrenched competitors and innovative upstarts is becoming increasingly difficult. Traditional offerings and marketing continue to decline. At the same time, your customers and employees face a host of evolving and confusing cyber threats that can quickly derail their lives. That, no doubt, partially explains why 79 percent of consumers prefer to do business with companies that provide identity monitoring services, according to a GfK Survey.

Yet the complexity of threats requires more than monitoring. Additionally, most identity and data protection service offerings haven’t kept up with the times and consumers’ expectations about self-service. At this intersection of evolving threats and customer needs lies a rare opportunity for you to establish a new type of valuable and ongoing engagement with customers.

In this article, we’ll explore this new opportunity for protecting and engaging your customers, examining:

  • Technology’s impact on customer interactions and loyalty
  • The tight correlation between security engagement and risk
  • Why it’s time for a new identity and data defense solution model
  • How a marketplace approach to identity management, privacy and cyber security can help you regularly engage customers, improve loyalty and grow revenues

Technology’s impact on customer interactions and loyalty

Today, most engagement is technologydriven, and customers expect nearly instantaneous responses for any type of query or request.

Engagement1

The tight correlation between security engagement and risk

It’s not just technology that has been evolving rapidly over the years. We’ve also seen a corresponding progression in the sophistication and types of identity and data fraud.

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Why it’s time for a new identity and data defense solution model

We recognized the growing potential of cyber and identity protection services as a unique opportunity for ongoing necessary engagement. That’s why we took a step back and reconsidered everything from the changing threat landscape to changing customer preferences and began working on an innovative approach for organizations to engage customers.

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Click here to access Cyberscout’s White Paper

 

The Customer Journey of a Lifetime: Step-by-Step Modernisation to Maximise Retention

Customer experience is the insurer’s latest hot topic. Improving it at existing touchpoints and finding new opportunities to deliver it beyond purchase, renewal and claims dominate discussions. McKinsey found in the B2B sector that improved customer experience lowered churn by 15%, increased win rate from 20% to 40% and lowered costs to serve by up to 50%.

But understanding how to deliver great insurance customer experience, whether on mobile, in a contact centre or at a repair shop means far more than finessing an individual point of interaction. How the customer experiences each interaction and how it colours past and future interactions is critical to building a successful customer experience.

In other words, if you don’t give your customer the best journey, they’ll never arrive at the desired destination.

In this paper we look at the latest research supporting customer journey analysis and speak to three insurance executives who are putting this strategy at the heart of their customer experience and engagement policy. Progress towards the optimal customer journey is examined in the following stages:

  1. Proof points for customer journey analysis
  2. Embedding effective customer tracking
  3. Solid data collection practice
  4. Assessing and enhancing the availability of information
  5. Upskilling the organisation to manage the journey
  6. Discovering and mitigating pain points in the customer journey
  7. An atmosphere of continuous improvement

Proof points for customer journey analysis

Customer journey analysis and optimisation is so important because of the multiple channels and external influences involved in the buying process. So much can happen between intent and purchase. No-one is exempt. Google and Ipsos found that 90% of people move between devices in a sequential fashion to accomplish a goal. In online shopping, 61% of internet users and 80% of online millennials start shopping on one device but finish on another.” This is a pretty simplistic view. If we turn to research by user experience research house, GfK, the customer journey looks even more convoluted:

CX Survey

From this infographic, we note that most insurance customers use branded search but also go across around eight touchpoints including social media and email. Only 14% don’t do any research and for those who do, most will research online covering around five different websites. Further research on the insurer journey from GfK found that hardly any purchasers bothered with word of mouth (5%) but price comparison sites (PCS) wield a strong influence (26%).

This diagram only relates to the insurance purchase journey. There are many more influences on customer retention such as claims journey, customer engagement campaigns (increasingly popular under the influence of internet of things (IoT) technology).

Embedding effective customer tracking

The business case for journey analysis established, insurers need to make sure they are tracking all the essential touchpoints.

ERGO Group AG’s Head of Customer and Sales Service Health, Dr. Carsten Rahlf explains his process: “If a phone number is saved in the database we can see the customer’s profile upon calling, their historic interaction points, so we know where he is in the process. If he went to the doctor, paid him and wants to be reimbursed, also we can see when and how he submitted his bills. He may have sent them by post or used the app. He and we can see through the online portal that his request has been accepted and the customer and the agent can then track it to see if it has been executed.”

Wesleyan’s Group Head of Marketing Robin Gibson is in the middle of bringing CRM data into a Microsoft Dynamics system to improve their single view of the customer – vital to make any sense of customer tracking data. Executives looking to follow his lead should be aware it is a long-term project: “We spent the last three years on integration, migrating all the data into new CRM systems. The first part is to allow financial consultants and the customer to jointly have a single view of finances. »

« The next part is to allow customers to self-serve on their devices. Next, we need to put marketing plugins into the system to simulate interactions and use the database to find new customers.” He adds that a manageable, clean source of customer information is vital to comply with May 2018’s GDPR legislation which requires explicit data consent ongoing. It’s clear that tracking the customer journey means not just focusing on points of customer interaction such as cookies on a website or calls to a call centre but also looking internally to see what processes are helping or hindering that customer journey.

This will never be an exact science. Explaining where tracking begins and ends in MyCustomer, SEO expert Martin Calvert admits a degree of arbitrariness is expected “The start and end points of a customer journey are always going to be debatable. Does the journey ultimately start when they see one of your brand’s adverts years ago…does it end after they’ve bought their last product from you in their 80s?”

The learning is to track what you can and hunt out two specific areas:

  • one, where gaps in the customer journey appear
  • and two, where customers appear to experience pain points that are unaccountable – so far.

To get reliable pictures of this, insurers need to access as much data as possible.

Customer Journey

Click here to access InsuranceNexus’ White Paper