The Intelligent Enterprise Whitepaper for the Insurance Industry
Discover how insurers can thrive in the digital economy. Use intelligent technologies, such as artificial intelligence, blockchain, and the Internet of Things, to become a digital business. Rely on experience management solutions to gain insight into customer behavior. Adopt processes and models to improve operational agility and transparency. Download the DocumentWELCOME
“Insurers will use
the explosion of
information to turn
data into insights
and to get closer
to their customers
in the experience
economy. These
companies will
reimagine their
business models to
deliver new customer
value across traditional
industry lines.”
Toni Tomic
Global Head of
Insurance Business
Solutions
SAP SE
Dear Customers,
Radical change in the once-staid insurance industry
is occurring at a rapid pace. Disruption in
technologies, in business models, in standards, and
in the makeup of insurance companies themselves
demands constant adaptation. Driven by
competition from new insurance and insurtech
players, rising consumer expectations, and
emerging technologies, insurers must respond
to rapidly changing customer opinions and
perceptions while still complying with all standards
and regulations.
It is no small task, one that requires a fundamental
reimagining of business models. Insurers must meet
the challenges from competitors by adopting digital
technologies and an innovative approach that
enables rapid solution development and deployment
based on measuring and understanding customer
sentiment.
The global business economy is moving from
industry-specific offerings to new digital network
economies – alliances with other companies, even
competitors, to create complementary networks of
offerings and services. The effect is a blurring of
industry lines. This new network economy will grow
to US$60 trillion by 2025 and coalesce around
fewer ecosystems, according to estimates from
McKinsey & Company.1 Insurance companies are
uniquely positioned to participate in many of these
networks, as they touch life, health, property and
wealth, housing, travel, and public services, to name
a few.
By 2025, we expect that many insurers will have
transformed their businesses to engage with
cross-industry ecosystem providers. Instead of
just managing risk, the industry will be focused on
prediction and prevention. A few leading insurers
have already embarked on this journey.
Digitalization will ultimately be the foundation
on which insurers will build new experience
management strategies to connect directly
with customers and to increase market share. The
rise of smart digital platforms has transformed
consumer expectations. These digital-first
experiences point the way for insurance companies
to retake their place in their customers’ lives – and
to remain relevant and competitive.
Insurers will use the explosion of data from
digital platforms to get closer to their customers.
They will be able to reward positive customer
behavior, predict where risk looms largest, and
increase customer engagement by providing
services such as loyalty programs that connect
customers to an array of related services.
We have identified three strategic priorities critical
to keeping insurance companies relevant:
▪ Digital engagement
▪ Protection services
▪ Data-driven insights
To achieve the 2025 vision, insurers must take
advantage of the ever-growing amount of data
generated by the Internet of Things (IoT) to
accurately track customer behavior and
engagement. They can use artificial intelligence (AI)
and machine learning to enable more-secure
processes and transparency – supporting risk
mitigation for their policyholders. Blockchain can
be used to help insurers automate the settlement
of claims by leveraging business rules that are
encoded into smart contracts. These actions will
provide an opportunity to intelligently connect
information and quickly deliver innovative products
and services to improve customer loyalty and
satisfaction.
Leading insurance companies are already partnering
with tech-focused newcomers to leverage their
technology and talent.
This paper takes a deep dive into the trends shaping
our industry and the path to innovation.
As industry after industry undergoes its own digital
transformation, a world of opportunities opens up
for insurance companies to become partners in their
customers’ lives. Those that do will cement their
place for years to come with a new generation of
consumers who live online.
With the intelligent, sustainable enterprise approach
and the significantly changing financial services
technology market driven by fintechs and insurtechs
in mind, SAP announced in 2021 the launch of
SAP Fioneer. This new member of the SAP family is
a joint venture for the financial services industry
(FSI) between SAP and Dediq GmbH intended to
fuel the development of core insurance and banking
industry solutions. SAP Fioneer further expands the
financial service software capabilities offered by
SAP. It also develops and innovates on new solutions
to serve customers in the rapidly changing banking
and insurance industries. SAP Fioneer enables
customers to innovate and transform their business
by combining premier SAP technology with
development expertise and a global network of
customers, partners, and colleagues.
Toni Tomic
Global Head of Insurance Business Solutions
SAP SE
SAP Industries White Paper | Insurance
3
Watch the “Intelligent
Enterprise for the
Insurance Industry”
video.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.
“Insurers will use
the explosion of
information to turn
data into insights
and to get closer
to their customers
in the experience
economy. These
companies will
reimagine their
business models to
deliver new customer
value across traditional
industry lines.”
Toni Tomic
Global Head of
Insurance Business
Solutions
SAP SE
Dear Customers,
Radical change in the once-staid insurance industry
is occurring at a rapid pace. Disruption in
technologies, in business models, in standards, and
in the makeup of insurance companies themselves
demands constant adaptation. Driven by
competition from new insurance and insurtech
players, rising consumer expectations, and
emerging technologies, insurers must respond
to rapidly changing customer opinions and
perceptions while still complying with all standards
and regulations.
It is no small task, one that requires a fundamental
reimagining of business models. Insurers must meet
the challenges from competitors by adopting digital
technologies and an innovative approach that
enables rapid solution development and deployment
based on measuring and understanding customer
sentiment.
The global business economy is moving from
industry-specific offerings to new digital network
economies – alliances with other companies, even
competitors, to create complementary networks of
offerings and services. The effect is a blurring of
industry lines. This new network economy will grow
to US$60 trillion by 2025 and coalesce around
fewer ecosystems, according to estimates from
McKinsey & Company.1 Insurance companies are
uniquely positioned to participate in many of these
networks, as they touch life, health, property and
wealth, housing, travel, and public services, to name
a few.
By 2025, we expect that many insurers will have
transformed their businesses to engage with
cross-industry ecosystem providers. Instead of
just managing risk, the industry will be focused on
prediction and prevention. A few leading insurers
have already embarked on this journey.
Digitalization will ultimately be the foundation
on which insurers will build new experience
management strategies to connect directly
with customers and to increase market share. The
rise of smart digital platforms has transformed
consumer expectations. These digital-first
experiences point the way for insurance companies
to retake their place in their customers’ lives – and
to remain relevant and competitive.
Insurers will use the explosion of data from
digital platforms to get closer to their customers.
They will be able to reward positive customer
behavior, predict where risk looms largest, and
increase customer engagement by providing
services such as loyalty programs that connect
customers to an array of related services.
We have identified three strategic priorities critical
to keeping insurance companies relevant:
▪ Digital engagement
▪ Protection services
▪ Data-driven insights
To achieve the 2025 vision, insurers must take
advantage of the ever-growing amount of data
generated by the Internet of Things (IoT) to
accurately track customer behavior and
engagement. They can use artificial intelligence (AI)
and machine learning to enable more-secure
processes and transparency – supporting risk
mitigation for their policyholders. Blockchain can
be used to help insurers automate the settlement
of claims by leveraging business rules that are
encoded into smart contracts. These actions will
provide an opportunity to intelligently connect
information and quickly deliver innovative products
and services to improve customer loyalty and
satisfaction.
Leading insurance companies are already partnering
with tech-focused newcomers to leverage their
technology and talent.
This paper takes a deep dive into the trends shaping
our industry and the path to innovation.
As industry after industry undergoes its own digital
transformation, a world of opportunities opens up
for insurance companies to become partners in their
customers’ lives. Those that do will cement their
place for years to come with a new generation of
consumers who live online.
With the intelligent, sustainable enterprise approach
and the significantly changing financial services
technology market driven by fintechs and insurtechs
in mind, SAP announced in 2021 the launch of
SAP Fioneer. This new member of the SAP family is
a joint venture for the financial services industry
(FSI) between SAP and Dediq GmbH intended to
fuel the development of core insurance and banking
industry solutions. SAP Fioneer further expands the
financial service software capabilities offered by
SAP. It also develops and innovates on new solutions
to serve customers in the rapidly changing banking
and insurance industries. SAP Fioneer enables
customers to innovate and transform their business
by combining premier SAP technology with
development expertise and a global network of
customers, partners, and colleagues.
Toni Tomic
Global Head of Insurance Business Solutions
SAP SE
SAP Industries White Paper | Insurance
3
Watch the “Intelligent
Enterprise for the
Insurance Industry”
video.
© 2022 SAP SE or an SAP affiliate company. All rights reserved.