Building Digital Insurance Products: Life Edition

by Craig Beattie,  Tom Scales, July 29, 2016
Case Studies
Global

Abstract

Celent has released a new report titled Building Digital Insurance Products: Life Edition. The report was written by Craig Beattie and Tom Scales, senior analysts in Celent’s Insurance practice.

The report describes the capabilities required to embed digital in today’s insurance products.

For simple products that are highly automated with regards to underwriting and pricing, a digital insurer needs to offer the consumer a seamless, simple experience. For complex products that rely on human expertise, a digital insurer needs to define a collaborative digital platform that enables the human expertise to be augmented by increasingly powerful, and smart, automated processes.

“In order to embed digital in today’s insurance products, we must rethink what it means to build an insurance product,” says Beattie.

“Life insurers are behind other financial services companies in leveraging digital. It’s time to catch up, and doing so will require new product thinking,” says Scales.

This current report takes these differences and examines what new, digital platforms for delivering insurance products look like. Further, it examines the possibility of blending these platforms.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

A Taxonomy of Life Insurance Products

4

 

Types of Buyers

4

 

Considering Complexity

5

Digital Simple Products: The Need for Speed

8

 

The Drivers of Change

8

 

Two-Speed Insurance Products?

10

 

Optimizing Change Process

11

 

New Product Variant

12

 

New Product — Creating a Platform for Offers

13

Digital Complex Product: The Need for Quality

15

 

Products and Offers in a Complex World

15

One System to Rule Them All?

17

 

Just Because You Can Build It Doesn't Mean You Should

18

 

An Opportunity

18

Challenges in Adopting Digital Product Delivery

19

 

Design and Build Teams

19

 

Regulation

19

 

Partners

19

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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