As their traditional businesses are disrupted, insurance companies will need to find new sources of revenue or risk extinction. Leading insurers of the future will find ways to monetize their data, turning it into revenue and competitive advantage. We estimate that data monetization could be worth $6-8 billion of new annual profit for the insurance industry—making up for a significant portion of the anticipated profit loss due to disruption.
READ THE REPORT [PDF]Data-rich, profit poor
Tapping the revenue potential of insurers’ data
OVERVIEW
KEY FINDINGS
The insurance industry is at a tipping point. New entrants and new technologies are emerging that can mitigate or even avoid insurance loss. In fact, all new vehicles sold will be connected by 2025. And automakers are likely to include insurance coverage with their autonomous vehicles.
Yet many insurers already possess a significant weapon with which to win the battle for new sources of revenue. They hold vast amounts of data with unique insights that can be connected and enriched with external data sources to fuel new business models. However, traditionally, they have struggled to translate this information into profit.
Data flowing in is expanding exponentially from a broad range of sources. Monetizing it will be a key success factor for insurers. Yet, they risk being left out as other players are well-positioned to capture the opportunity. With increasing numbers of players seeking to capitalize on connected technologies, insurers cannot afford to hesitate.
RECOMMENDATIONS
As traditional sources of revenue decline in the wake of digital disruption, insurers have an opportunity to turn their data and insights into new revenue and competitive advantage.
To capitalize on the opportunity, they need to:
Evaluate the market and business potential
Define use cases, data and insights to generate the business
Determine a go-to-market approach with appropriate partnerships
Proactively develop innovation capabilities, including acquiring new skill sets and knowledge
Formulate an implementation approach with specific activities and initiatives
With $6-8 billion of new annual profit at play, data monetization could be the path to survival under disruption.
LEARN MORE ABOUT ACCENTURE STRATEGY
AUTHORS
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John Mulhall
Managing Director – Accenture Strategy, Insurance
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Berend de Jong
Managing Director – Accenture Strategy, Technology Strategy
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Ivo Weterings
Senior Manager – Accenture Strategy, Technology Strategy
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