"Is the insurance industry living on borrowed time or will there be a race to generate spinoffs or acquisitions that will allow it to save face despite its technological backwardness?"

Enrique Dans-  Professor of Information Systems at IE Business School in Madrid in Forbes July 24th 2018

The convergence of autonomous car software, sensors, connected everything and telematics means insurers could insure just the 5% of time many autos are actually driven.  Dans states that "90% of drivers have no accidents and 95% obey traffic signals" implying good driving behaviour by majority and risk concentrated in a small minority.

In parallel, car ownership is moving away from private ownership to leasing and thence on to enterprise ownership of autonomous vehicle fleets.

How are insurers planning to anticipate these trends? -

  1. Short term- next 5 years
  2. Medium Term - next 15 Years
  3. Long Term- Next 82 years

Short Term

Insurers offering faster, more effective repair/cash settlement whilst stripping out cost with digital claims platforms that deliver Amazon quality UX: -

  • Digitise processes
  • Communicate in real-time
  • Orchestrate all parties involved including: -
    • Claimants
    • Brokers
    • Internal Staff
    • Supply Chain
    • External Contractors
    • Outsourced Services
    • Repair and Body Shops
    • Car Hire
    • Healthcare

Medium Term

Deliver the products owners, drivers and autonomous vehicle passengers/owners need rather than today's products

  • Innovate world class Micro-Insurance products
  • Join the winning ecosystems of
    • Vehicle Manufacturers
    • Fleet Owners
    • Brokers
    • Distributors
    • GAFA s and APAC competitors

Long Term

Should the CDO plan today and anticipate and has she the backing of the C-Suite: -

  • 80% autos being in Africa & Asia?
  • Survive the 80 years competition from the APAC GAFAs 
    • Zhong An?
    • Tencent?
    • Alibaba?
    • Softbank
    • Ping? 
  • being a commodity insurance supplier to fleet owners and ecosystems?

How is a Chief Digital Officer in today's insurers to plan ahead? Probably under short term pressure to fight against full stack insurtechs, other innovative insurers and commoditisation forced by Amazon and other GAFAs owning data supremacy and customer UX.

In the Medium Term should CDOs build their own platforms to be market leader, buy and rebrand insurtech platforms or focus on efficiency and distribution through GAFAs

In the long term will the insurer have survived the change to the North America and Europe being just 20% of vehicles, consumption and trade and wealth being concentrated in Asia Pacific and Africa? How will the CDO's vision, strategy and tactical execution in the short and medium term have enabled success in the longer term.

Interesting Times indeed.