However, in our conversations with many senior leaders, we are struck by the fact that they are not singularly focused on how digital investments will deliver ROI and improve their bottom lines.
Despite the industry’s focus on digital, we’ve seen digital initiatives at carriers become undisciplined and unmanageable, producing negligible or even negative financial returns, because executives have failed to impose clear targets for P&C’s primary drivers of return on investment.
The three P&C industry sectors – personal lines, small and medium-sized enterprise (SME), and large corporate and specialty – each face their own challenges. Thus, we believe that high impact digital investments vary by sector; according to competitive dynamics, historical factors, and areas of greatest improvement opportunity.
P&C insurers must work to ensure that they have baseline digital enablers in place; the data, systems, and processes required for the successful implementation of digital initiatives. Consequently, P&C insurers must approach digital investments by taking into account both the dynamics at play in their industry segment and their baseline digital infrastructure and skills.
First, we’ll identify the forces currently reshaping each of P&C’s three sectors and show how targeted investments can produce bottom line results and high ROI.
We’ll conclude with an overview of seven foundational digital enablers common across P&C insurance.