Scouting for Growth David Kwon: A decade of societal change
On this episode, Sabine VdL interviews IBM’s David Kwon about how insurance companies have had to navigate a decade of societal change. From the financial crisis and the rise of digital technology to changing consumer expectations, insurers face challenges that are fundamentally altering the very core of our industry.
Does the question remain whether property and casualty insurers will be able to keep pace with changes in society over time? Are they focusing on the right priorities? And what about life insurance – is BigTech making any headway here to challenge established practices?
In this episode they discuss these trends and examine how insurers can best position themselves for success during this period of rapid transformation.
KEY TAKEAWAYS
- To remain relevant, insurers must find ways to embrace change while also ensuring profitability despite the current blurred competitive boundaries. While some insurers have embraced the new environment with open arms, others seem reluctant to adapt or even acknowledge potential opportunities for growth.
- Mass-personalisation is the goal of every large insurer, not just for consumer products but insurers targeting B2B customers as well. The technology has evolved to a point where videos on a website can be personalized to each person, not just seeing your name on a website, but addressing you by your first name, referencing your family, etc.
- There are a lot of new risk pools, including self-driving cars. There are six levels of autonomy here, from level 1 being cruise control to full autonomy. Up to level 4 the liability is still with the driver, but AI is taking a bigger and bigger role in the driving, so insurance writers now have to begin to think about the AI as a risk, just like the driver. At level 5, where there’s no steering wheel, it becomes product liability and the responsibility moves from the driver to the manufacturer, which is a completely different business. It also impacts home and auto bundling. The overall auto market will start to shrink as more people buy autonomous cars.
- For insurers this is an interesting time, we’re beginning to see new risks emerging as the foundations of risk are getting more attention than before. There are 3 big disruptive technologies: IoT, AI, and hybrid cloud.
BEST MOMENTS
‘Covid has exposed the vulnerability of the interconnected world, the western world was hit first and suffered faster before it spread to third world countries.’
‘Science and technology are key to solving the toughest challenges in our society.’
‘The days of easily targeting users by buying third party data is passing us quickly. Insurers must now focus on first party data by engaging directly with the prospects and policy holders and get the data themselves through deeper engagement and better experience.’
‘Covid accelerated ecommerce by about 2 years. All businesses, even small ones, are relying on technology more than ever before.’
ABOUT THE GUEST
David Kwon is a sought-after Digital Reinvention Executive to IBM’s largest US and international insurance and banking clients. David is an associate partner within IBM business transformation services and a member of IBM Industry Academy.
David has delivered over 60 strategy and transformation projects as an engagement leader and in executive strategic roles ranging from digital strategy, customer experience, business case for change.
LinkedIn: https://www.linkedin.com/in/davidkwon1/
ABOUT THE HOST
Sabine is a corporate strategist turned entrepreneur. She is the CEO and Managing Partner of Alchemy Crew, a venture lab that accelerates the curation, validation, & commercialization of new tech business models. Sabine is renowned within the insurance sector for building some of the most renowned tech startup accelerators around the world working with over 30 corporate insurers & accelerating over 100 startup ventures. Sabine is the co-editor of the bestseller The INSURTECH Book, a top 50 Women in Tech, a FinTech and InsurTech Influencer, an investor & multi-award winner.
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