Perspectives from Boyden's Global Financial Services Experts on Banking, FinTech, Real Estate, Insurance, Wealth & Asset Management
A roundtable discussion led by Boyden's Global Financial Services Practice Co-Leaders, Carlos Dafauce and Joost Goudsmit.
Joost Goudsmit: Crisis can be a catalyst for innovation, with unique considerations in the insurance space. What opportunities do you see in the general and life insurance segments due to the new reality?
Caroline Golenko (France): We have seen in Europe, and in particular in France, a certain number of pure digital players such as Alan or Friday that have become popular and that correspond to a digital-native need: user-friendly, efficient, rational, and cost-conscious as well as ethical.
Insurance on a pay by kilometer or pay by use mode is most probably a trend that will be adopted by the market. Flexibility and adaptability are becoming a real business trend facilitated by digital interface/contact with the client. That means that important budgets must be oriented into R&D, marketing and innovation. This also implicates that some traditional players will have to reorganize or change their business model to survive. Some acquisitions and concentrations will take place, in order to compose new flexible and credible players on the one or the other segment.
Due to this, a leadership transition will be taking place. The current generation will likely organize its succession sooner than originally scheduled as the crisis has revealed talent but also demonstrated that some leaders were not the right ones to deal with the new challenges.
Juliet Hardingham (U.K.): That’s right. It seems the spotlight on digital innovation is exemplified across the insurance sector. Literally overnight, just about everyone knows what virtual health is. Whether that is a GP in your pocket or access to other health care professionals, this crisis continues to stimulate innovation to respond to customer demand for these services. Due to growing concerns and interest around mental and physical well-being for customers and employees, we are seeing a continued emergence of new well- being and data-driven digital applications and online tools. Many businesses expect the volumes in health and life insurance to grow. This crisis has enhanced the overall concern for personal health and wellbeing and raised consumer awareness of the importance of adequate life and health insurance plans.
We’ve also seen how this crisis has further shifted how customers want to buy insurance with greater demand for more flexible on-demand solutions; leading to a bigger spotlight for Insutech providers and innovative insurance providers leveraging AI and advanced analytics to provide competitive advantage through agile and accurate pricing.