Tomorrow’s Leading Asian Life Insurer

by Wenli Yuan, September 29, 2014
Industry Trends
Asia-Pacific

Abstract

Today’s market offers no rest for insurance firms. Changes in the past decade in technology, customer attitudes, distribution, brand, and insurance value perception have forced insurers to rethink their business models.

In the report Tomorrow's Leading Asian Life Insurer, Celent recommends that insurers focus their attention on four strategic dimensions if they want to gain competitive advantage:

  • Applying data mastery technology and customer science.
  • Rethinking the brand, product, and service.
  • Applying manufacturing techniques.
  • Refocusing distribution efforts.

Celent also defines drivers of change impacting the life insurance market in Asia and details strategic responses insurers should implement to be successful in the long run. The report also discusses technologies around these four strategic dimensions.

“Applying data mastery technology and customer science is the foundation of the other three areas. Customer science should be applied in marketing, product/service, process, and distribution,” says Wenli Yuan, a senior analyst with Celent’s Asian Financial Services Group and author of the report.

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 subsidiary 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

What Will It Take to Become Tomorrow’s Leading Insurer?

2

 

Winning Strategies for Life Insurers

3

Applying Data Mastery Technology and Customer Science

3

 

Data Mastery

4

 

Customer Science

6

 

Segmentation and Pricing

6

 

Capturing Greater Value from Existing Customers

7

 

A Catalyst for Cultural Transformation

8

 

Cross-Sell Effectiveness Through Customer Analytics

8

 

Technologies

9

Rethinking the Brand, Product, and Service

12

 

Approaches to Better Appeal to Customers

12

 

Technologies

13

Applying Manufacturing Techniques

15

 

Laggards

15

 

Manufacturing Best Practices

17

 

Insurance Value Chain Automation

17

 

Operational Excellence Is More Than Pure Cost-Cutting

18

 

Technologies

20

Refocusing Redistribution Efforts

22

 

Drivers of Distribution Changes

22

 

Channel Requirements and Implications for IT Strategy

22

 

Technologies

23

Conclusion

25

Leveraging Celent’s Expertise

27

 

Support for Financial Institutions

27

 

Support for Vendors

27

Related Celent Research

28

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