McKinsey: insurance in 2030 will be very different
However, despite this, McKinsey does not view the negative fortunes of the industry to originate exclusively from the virus: “Even in the years before the pandemic, only a small subset of insurers were earning substantial profits, offset by another small subset of insurers that had destroyed substantial economic value.”
As such, the report postulates that, far from causing problems for insurance, the pandemic has merely highlighted the inefficiencies that were already present. In a belated ‘call to action’, insurers have subsequently been pursuing a course of digital transformation that McKinsey predicts will render the 2030 sector as markedly different from its predecessor.
Fulfilling the 2030 vision
First and foremost, the report estimates that an increased focus on digital technology will result in net operational gains, “Insurance carriers have an opportunity to improve productivity and reduce operational expenses by up to 40% while simultaneously improving their customers’ experience.”
Furthermore, core aspects of insurance will be different:
- Products: increasingly sophisticated tech platforms will enable simplified products to reduce customer confusion. Portfolios will also be drastically scaled back; McKinsey estimates between five and 10 products per insurer (a 90% reduction on today’s market).
- Distribution: a seamless and effective omnichannel approach will become the norm, with customers switching between online, automated and human agents to further their enquiry. Sales processes will also be refined to enable better lead generation.
- Underwriting: although McKinsey doesn’t expect underwriting to be fully automated in 10 years, it is still true that large portions of it (30 to 40%) is occupied with repetitive, admin-related tasks. Therefore, investment in is likely to continue.
- Claims: following on from underwriting, the report does speculate that claims will benefit significantly from automation; human and artificial intelligence (AI) will combine to expedite claims without sacrificing human empathy.
In summary, the report characterises the transition as the industry moving towards ‘tech companies that provide insurance’, rather than the inverse. It also stresses that gaining employee buy-in will be crucial in terms of a successful departure from old paradigms.
“Insurers need to communicate and effectively, starting with a united front at the top,” McKinsey concludes.
“Employees are happier and more apt to change their behavior when leadership communicates a clear view of where the company is going. The CEO and other board members need to recognise and communicate that the transformation is a journey and the reasons the transformation is necessary in this new and volatile environment.”
The Ultimate FinTech & InsurTech LIVE Event
Whether you attend virtually or in person, it will give you the chance to network with C-Level executives, share ideas with industry pioneers, and walk away with actionable, unique insights to bolster your business and career.
By the end of the three-day event, you will have seen the latest innovations in both FinTech and InsurTech. You will be able to see how companies like yours are tackling the problems that keep you up at night, engage in a community that many struggle to access, and share your ideas with people who care as much as you do.
How can you attend?
In the post-Covid era, not everybody wants to travel for events. So FinTech and InsurTech Live will be completely hybrid. That means you can attend the event in person or virtually - with no disadvantages to people who don’t make the trip to the Tobacco Dock.
FinTech and InsurTech Live is happening in the Tobacco Dock in London, a ten-minute walk from Tower Bridge. For more information on the location, click here.
There’s no need to worry about missing out if you choose not to attend in person. You can still absorb all the information, interact with other attendees and enjoy the conference experience on our virtual platform.
There will be live feeds from all of the stages (also available on-demand after the event) as well as virtual networking areas. So not being able to travel is no reason to miss your chance to gather with the industry.
What’s on the agenda?
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, FinTech & InsurTech 2021 will expand your network, deliver insight, and enhance your organisation’s reach.
Across the three-day event, a number of relevant topics and trends surrounding fintech and insurtech will be discussed.
- Tuesday 14 October - Diversity and Inclusion
- Racial equality (11:30 am)
- Supplier diversity (12:00 pm)
- Sustainability (12:30 pm)
- Women in fintech (14:30 pm)
- Wednesday 15 October - Challenger and neobanks
- Cashless society (14:00 pm)
- SMEs (14:30 pm)
- Thursday 16 October - Adopting new-age digital solutions in the insurance industry (06:00 am)
Influential executives from around the world will give their insights and professional experiences surrounding these topics, allowing you and your company to leave with valuable information.
The topics surrounding digital transformation should certainly be on the mind of every executive after the events of 2020 and how we all had to adapt to meet customer’s needs. Creating a digital roadmap is key, and making changes to the traditional ways of working. Customers now have new needs, and keeping up to speed with the digital changes, whilst also doing so safely, are important.
If you want to get leading perspectives on the future of fintech and insurtech, you can purchase your tickets here.