Value Proposition canvas- Customer needs and pains
Insurers warned about merely ‘playing’ with digital in ey report insurance insight
1. Insurers warned about merely ‘playing’ with digital in EY report - Insur...
1 of 3
http://www.insuranceinsight.com/insurance-insight/news/2301950/insur...
Digital Publisher of the Year 2010
Search
Home
Home
Latest
Asia
Europe
Middle East
Opinion
In-depth
Interviews
Events
Digital Editions
About
News
Insurers warned about merely ‘playing’ with digital in
EY report
by Tracey Jones 22 Oct 2013 Be the first to comment
Insurers have been warned to take
mobile more seriously and not
merely ‘play’ at being digital leaders,
or be “left on the side lines”.
According to a new report from EY
published today, ‘Insurance in a digital
world: The time is now' they should also
be taking social media more seriously,
recognising its value as a relatively
inexpensive marketing tool and a means
to engage with and influence skeptical, digitally-savvy younger consumers.
The EY survey found only 43% of insurers currently provide mobile quotes
compared to 72% who provide these online. Even the non-life market, with
simpler, shorter-term products, significantly under-exploits mobile.
Asian insurers are less likely than their global counterparts to use social
media and mobile tools to interact with customers and agents: 30% use
mobile apps - lower than half the global ratio of 61%. However, they are
more likely than their global counterparts to interact with customers at
financial stages.
Graham Handy, EY's global insurance customer leader, said: "Insurers
focus on mobile products and services is limited. But with mobile and tablet
use growing exponentially, neglecting mobile is turning one's back on the
future."
The report draws a number of damning conclusions not least the
disconnect between ambition and level of investment among those
surveyed.
Fifty-seven per cent, of respondents said that they intended to have a
regularly updated digital business case and 78% aimed to have an
organisational structure to support their digital strategy within the next
three years.
Currently, however, almost 80% of survey respondents do not see
themselves as digital leaders, believing instead that they "only play the
digital game" or are "still learning to use digital capabilities for a
competitive advantage." More than two-thirds of insurers globally feel that
they have delivered some quick, easy wins but that has not been
accompanied by a long-term strategy to realize their ambitious digital
objectives, according to EY.
Sixty-eight per cent of respondents globally spend less than 10% of their
business and IT development budget on digital. A significant number of
Asia-Pacific respondents did not know current levels of digital development
spend: 79% versus 40% globally. Such lack of clarity is mirrored in their
view of expected future spend: 58% anticipate an increase over the next
year, compared to 80% globally.
EY concludes that legacy technology, slow pace of delivery and company
culture are also hindering the process. In the Americas, 96% cite legacy
technology constraints as a major impediment to growth versus 80%
globally. While in Europe, 93% say the slow pace of delivery by insurers
versus 64% globally hampers their digital ambitions.
Share
Re-tweet
Latest news
Dual unveils new
regional MD for
Asia
MSIG launches travel alerts in
Singapore
Insurers urged to embrace
digital strategies
Global takaful market "in its
infancy"
You may also like
Insurers urged to embrace
digital strategies
Video: EY insurance customer
leader Handy discusses why
insurers are failing to embrace
digital
Social media and fraud on the
agenda at Claims Club Asia Singapore
Online sales in Asia: ready to
take off
Latest white papers
Redomiciling: Insurer's
paradise?
June 2013: Global catastrophe
recap
Solvency II: Lost in the long
grass
What other people are
reading
First telematics
product launched in
Australia
Insurance bill
nearly AUS$100m
from fires
10/23/2013 10:10 AM
3. Insurers warned about merely ‘playing’ with digital in EY report - Insur...
3 of 3
http://www.insuranceinsight.com/insurance-insight/news/2301950/insur...
10/23/2013 10:10 AM