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 Document

THE INTELLIGENTENTERPRISE FORTHE INSURANCEINDUSTRYCreating contextual and personalizedexperiences to meet the demands of2025 and better serve customers todaySAP Industries White Paper | Insurance
SAP Industries White Paper | Insurance2© 2022 SAP SE or an SAP affiliate company. All rights reserved.
WELCOME“Insurers will usethe explosion ofinformation to turndata into insightsand to get closerto their customersin the experienceeconomy. Thesecompanies willreimagine theirbusiness models todeliver new customervalue across traditionalindustry lines.”Toni TomicGlobal Head ofInsurance BusinessSolutionsSAP SEDear Customers,Radical change in the once-staid insurance industryis occurring at a rapid pace. Disruption intechnologies, in business models, in standards, andin the makeup of insurance companies themselvesdemands constant adaptation. Driven bycompetition from new insurance and insurtechplayers, rising consumer expectations, andemerging technologies, insurers must respondto rapidly changing customer opinions andperceptions while still complying with all standardsand regulations.It is no small task, one that requires a fundamentalreimagining of business models. Insurers must meetthe challenges from competitors by adopting digitaltechnologies and an innovative approach thatenables rapid solution development and deploymentbased on measuring and understanding customersentiment.The global business economy is moving fromindustry-specific offerings to new digital networkeconomies alliances with other companies, evencompetitors, to create complementary networks ofofferings and services. The effect is a blurring ofindustry lines. This new network economy will growto US$60 trillion by 2025 and coalesce aroundfewer ecosystems, according to estimates fromMcKinsey & Company.1 Insurance companies areuniquely positioned to participate in many of thesenetworks, as they touch life, health, property andwealth, housing, travel, and public services, to namea few.By 2025, we expect that many insurers will havetransformed their businesses to engage withcross-industry ecosystem providers. Instead ofjust managing risk, the industry will be focused onprediction and prevention. A few leading insurershave already embarked on this journey.Digitalization will ultimately be the foundationon which insurers will build new experiencemanagement strategies to connect directlywith customers and to increase market share. Therise of smart digital platforms has transformedconsumer expectations. These digital-firstexperiences point the way for insurance companiesto retake their place in their customers’ lives andto remain relevant and competitive.Insurers will use the explosion of data fromdigital platforms to get closer to their customers.They will be able to reward positive customerbehavior, predict where risk looms largest, andincrease customer engagement by providingservices such as loyalty programs that connectcustomers to an array of related services.We have identified three strategic priorities criticalto keeping insurance companies relevant: Digital engagement Protection services Data-driven insightsTo achieve the 2025 vision, insurers must takeadvantage of the ever-growing amount of datagenerated by the Internet of Things (IoT) toaccurately track customer behavior andengagement. They can use artificial intelligence (AI)and machine learning to enable more-secureprocesses and transparency supporting riskmitigation for their policyholders. Blockchain canbe used to help insurers automate the settlementof claims by leveraging business rules that areencoded into smart contracts. These actions willprovide an opportunity to intelligently connectinformation and quickly deliver innovative productsand services to improve customer loyalty andsatisfaction.Leading insurance companies are already partneringwith tech-focused newcomers to leverage theirtechnology and talent.This paper takes a deep dive into the trends shapingour industry and the path to innovation.As industry after industry undergoes its own digitaltransformation, a world of opportunities opens upfor insurance companies to become partners in theircustomers’ lives. Those that do will cement theirplace for years to come with a new generation ofconsumers who live online.With the intelligent, sustainable enterprise approachand the significantly changing financial servicestechnology market driven by fintechs and insurtechsin mind, SAP announced in 2021 the launch ofSAP Fioneer. This new member of the SAP family isa joint venture for the financial services industry(FSI) between SAP and Dediq GmbH intended tofuel the development of core insurance and bankingindustry solutions. SAP Fioneer further expands thefinancial service software capabilities offered bySAP. It also develops and innovates on new solutionsto serve customers in the rapidly changing bankingand insurance industries. SAP Fioneer enablescustomers to innovate and transform their businessby combining premier SAP technology withdevelopment expertise and a global network ofcustomers, partners, and colleagues.Toni TomicGlobal Head of Insurance Business SolutionsSAP SESAP Industries White Paper | Insurance3Watch the “IntelligentEnterprise for theInsurance Industry”video.© 2022 SAP SE or an SAP affiliate company. All rights reserved.